TEL AVIV, ISRAEL, AND MANNHEIM, GERMANY — Südzucker, a leading sugar company in Europe, and DouxMatok, which develops targeted flavor delivery technology, have partnered to commercialize DouxMatok’s sugar reduction system across Europe, the two companies announced July 31. Initial commercial quantities of DouxMatok sugar, which has been shown to reduce the amount of sugar in applications by up to 40%, should be available in Europe in the second half of 2019.

DouxMatok and Südzucker executed a memorandum of understanding, which set up the production, joint marketing and sales of DouxMatok sugar to customers in Europe. The companies will focus on scaling up the production of the ingredient and expect to offer it for use in a variety of categories, including chocolate, spreads, snack bars, biscuits, baked foods and candies.

“Hopefully, not too long from now, we’ll discuss the American scaleup as well,” said Eran Baniel, co-founder and chief executive officer of Tel Aviv-based DouxMatok. “We are focusing on two huge markets: Europe and the United States.”

DouxMatok’s patented sugar delivery technology involves loading sugar molecules on a mineral carrier, which results in a more efficient delivery and enhanced sweetness perception. The result allows food companies to use less sugar while achieving the same sweetness level in products.

“The innovative and natural sugar reduction technology of DouxMatok is a logical extension of our diverse product portfolio,” said Randolf Burisch, commercial head of Südzucker´s sugar business unit. “We are very pleased to engage in this collaboration with DouxMatok and are looking forward to bringing the new DouxMatok sugar to the European market as it will provide many possibilities to customers for reformulation and new product development.”

Mannheim-based Südzucker operates 29 sugar factories and two refineries. Beneo, which is part of Südzucker, offers ingredients that may be used in sugar reduction systems, including Orafti inulin and oligofructose, isomalt, and Palatinose

“They have an understanding of the complexity of sugar reduction,” Mr. Baniel said.

 He said DouxMatok has greater aspirations than being just a niche ingredient for niche companies. The partnership with Südzucker will help the company reach a more mainstream market. DouxMatok soon should increase its number of samples available for potential food customers.

“Once you’ve given someone a kilo, and it’s worked, they come back for 10 or 100 (kilos),” Mr. Baniel said. “So I am careful responding. I am happy to say we’ll have more. At the moment, we have to put aside samples for us to continue the work, let alone for others.”

Besides reducing sugar in sweet-tasting products, DouxMatok could assist in other items. Mr. Baniel gave dark chocolate as an example.

“If you could make it sweeter, people will buy it more because it would cover some of the bitterness, some of the off notes, so to speak,” he said.

Reducing sugar in applications also may increase the perception of other flavors in products.

“Vanilla would be a great winner if you used DouxMatok,” Mr. Baniel said.