Danisco, Novozymes resolve baking enzyme dispute

The settlement, which covers lipases, will enables both companies to remain in the global market for these types of baking enzymes.

Both parties said in a statement issued today that they were pleased that the cases, which had been pending since 2001, are now closed.

Furthermore, both Danisco and Novozymes have agreed not to publish any details of the cases or the settlement.

Lipase is an enzyme that breaks down fats. It is used in a number of industries, especially the baking industry, where the enzyme gives the bread a number of desirable characteristics such as stable dough, better crumb structure and increased bread volume.

These enzymes have become increasingly important in supporting expansion within the bakery ingredients market. Jan Sindesen, president of Danisco Specialities, said last year that the firm saw lipases as a very fast growing category.

Indeed, the baking industry has proved to be one of the most lucrative segments for enzyme producers. The market for bakery enzymes came in at €32.1 million in 2003, and is expected to climb to €52.3 million by 2010 according to a report from Business Communications Company.

Although a relatively small segment of the global enzyme market, the lipase industry shows strong growth.

Novozymes dominates the overall enzyme market with about a 50 to 60 per cent share. US biotech firm Genencor, which now belongs to Danisco after acquisition clearance went through last year, falls into second place with an approximate 30 per cent slice.

A new study from researchers Freedonia slates world demand for enzymes will rise 6.5 per cent year on year to nearly €4.15 billion. But the study warns that maturity in key markets, such as food and beverages, will limit advances.