The LOI provides a framework for the parties to develop a long-term alliance agreement, giving DSM exclusive global rights to Fruitflow. This agreement will provide for a partnership and structure in which DSM and Provexis will develop, market and sell Fruitflow as an ingredient in all formats and territories.
The companies said that profits from the agreement will be shared by the parties on an agreed basis, linked to various performance milestones. Provexis will continue to support the development of current and future formats of Fruitflow and DSM will provide its manufacturing and selling capabilities for the commercialisation of Fruitflow.
Stephen Moon, CEO of Provexis, said: "We are delighted with this important step towards our new Agreement with our strategic partner DSM. We firmly believe that the expertise, scale and reputation of DSM will underpin the commercial success of Fruitflow.
"DSM has existing relationships with key companies globally in food, beverage and consumer healthcare. This coupled with its substantial sales force made this the best strategic fit for Provexis and will enable us to build Fruitflow into a significant global functional food brand. Provexis and DSM are currently assessing further projects which may develop the scope of the agreement further."