Cognis to start selling Tonalin

Published: 1-Apr-2003


The license signed last August between Cognis and Natural ASA, a Norwegian research and development company, for Cognis to sell and market Tonalin brand conjugated linoleic acid (CLA) has become effective.

The agreement grants Cognis an exclusive license to Natural ASA's CLA intellectual property, technology and marketing, as well as an exclusive license for the use of the Tonalin trademark. Now that the licensing agreement between Cognis and Natural is in effect, Tonalin CLA will be sold and marketed under Cognis's nutrition and health division. The companies are collaborating to ensure a seamless transfer of the Tonalin portfolio.

Cognis is seeking to expand the CLA's market share in its primary marketing channel of dietary supplements, as well as to advance the key markets of foods, cosmetics and pharmaceuticals.

'We are pleased that the licensing agreement between Cognis and Natural is now in effect so we can begin implementing programmes to increase Tonalin's visibility in the marketplace, and build upon its already impressive record of clinical substantiation,' stated Paul Allen, group vp, Cognis nutrition and health. 'In 2003, Cognis will continue to strengthen the brand equity in established marketing channels, developing marketing opportunities in new channels, and promoting credible research on CLA's promising health applications.'

Cognis has agreed to make royalty payments to Natural based on CLA sales for the remainder of the life of the intellectual property and know-how, guaranteeing minimum payments for the first three years.

Market potential for CLA can not be predicted easily but in 2002 Natural recorded growth rates of 44% compared with the previous year.

CLA is a conjugated fatty acid that is a natural part of the human diet through its presence in meat and dairy products. The CLA content of natural dairy products has fallen over time, and the human body now needs to supplement its consumption of CLA from other sources. Natural has developed and patented a number of CLA-containing substances, and expects to see CLA used in the future for preventive medical purposes. Tonalin CLA utilises a new proprietary process that converts linoleic acid from safflower oil into conjugated linoleic acid, providing the highest activity available at 80%.

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