DNP issued a short statement announcing the full licensing of the business to Japanese supplier, Taiyo Kagaku, but did not go into the reasons for licensing the ingredient off other than to praise Taiyo's ability to successfully take the ingredient on.
Taiyo International possesses its own green tea extracts including Sunphenon.
DNP had been operating a partnership since 2009 whereby New Jersey-based Pharmachem Labs looked after food supplements, and DNP controlled the food and beverage space.
Taiyo will take over the entire operation for the epigallocatechin gallate (EGCG) based extract that appears in supplements and foods and drinks including Nestlé smoothies and teas in about 30 countries
“DSM appreciates its historical relationship with Pharmachem on Teavigo and the great job they did in the Dietary Supplement segment,” said Will Black, DNP VP marketing, and DSM Nutritional Products.
“We are delighted that Taiyo have taken over the Teavigo business. Taiyo’s solid reputation, extensive product portfolio, knowledge of the market and global reach make them a perfect fit for the Teavigo business.”
The four primary polyphenols found in fresh tea leaves are epigallocatechin gallate (EGCG), epigallocatechin, epicatechin gallate, and epicatechin. EGCG has been linked to improvement in a variety of healthy outcomes including diabetes, cancer and cognitive function.
DNP said a transition period would mean Taiyo would not be in sole control until the end of the year.
“During the transitional period, DSM, Pharmachem and Taiyo, will collectively work together to allow for an orderly transition for all Teavigo customers and are dedicated to assure an uninterrupted supply of Teavigo EGCG,” DNP said.
The financial terms of the deal were not disclosed.
After publication Black got in touch to add the offload did not represent a shift in DSM's botanicals strategy.
"DSM remains committed to having a broad portfolio of science-based ingredients from a variety of sources to offer choice and service its customers."