=> CONFIDENTIAL Put MINUTES OF THE PENICK & FORD : DEVELOPMENT-COMMITTEE MEETING September 24, 1969 Winston-Salem, Korth Carolina Members Present: Mr. E. A. Vassallo Dr. £. C. Ritchel] Mr. W. C. Black, Mr. C. M. Sawyer, dr. Dr. R. E. Brouillard Dr. C. E. Teague Dr. R. E. Farrar Mr. 0. H. Tousey Mr. R. L. Morgan Purpose of the meeting: To review Penick & Ford development projects and plan future activities. Emphasis will be Placed on projects which can produce economic effect ‘in tuo years. The projects discussed were as follows: I, TOTAL SUGAR (Pendex, Celutab) A. Present Status Dr. Brouillard stated that the start-up of the first total sugar plant is scheduled for October 1, 1969, and that information as to the actual capacity and operating costs would be available for economic studies by January 1, 1970. : Dr. Farrar ‘asked when representative product from | the plant would be available for use in development work, and he was told that it would be 4 to 6 weeks after start-up. Mr, Tousey discussed the sales outlook and emphasized the areas of greatest interest. Nr. Tousey stated that sales in the imediate future _- to pharmaceutical companies should amount to T-million I pounds per year at 15-cents per pound. The material would be used mainly in tableting drugs. He also stated that no great volume is expected to develop in the drug ficld; but in 2 or 3 years the demand should be about 3-miltion pounds annvally growing to 5- to 10-million pounds over the long term as it is used in the develop- ment of new drug products. gest £805He stated one of the biggest users in the inmediate future could be Sunline, Inc. to make a confectionary tablet. They are presently using 45-million pounds per year of agglomerated dextrose at 8.5-cents per pound for ‘this purpose. Sunline claims they cannot pay 10-cents a pound for total sugar, so Mr. Tousey hopes to get 9-cents per pound. Sunline's most satisfactory product has been made from a mixture containing 30% agglomerated dextrose and 70% Pendex. The next big market would be in competition with — dextrose at 95% of the dextrose price (approximately &¢/pound). Several candy companies are experimenting with Pen- dex: Brach, Curtis, and Tom Huston. Dr. Brouillard stated that a report to be released soon by the Columbia University School of Pharmacy will stress that sucrose is unsatisfactory for use in tablet- ing machines. This should help total sugar sales. B. Future Activities On Total Sugar 1. By ROR Product Development a. Flavored Total Sugar : 1. Work will be continued on the develop- ment of extruded, flavored total sugar using other flavors in addition to orange oil. 2. 100 pounds of the extruded orange oi1 product (not encapsulated) will be delivered to Dr. Brouillard packaged in 1-pound quantities in glass jars containing a nitrogen atmosphere as soon as possible. This material is to be used for market development. 3. Work will be continued on the encapsula- tion of the extruded, flavored total sugar. 4, The possibility of a patent on the ex- trusion process will be investigated. 5, Packaging and shelf life studies on the flavored total sugar products will be continued. 98ST eegesIl. b. Increasing the D.E. of Total Sugar 2 The use of reverse osmosis to remove im- purities from high D.£. syrup used to produce total sugar will be studied as a pos- sible way to increase the D.E. (dextrose equi- valence) of the product. c. Increasing Total Sugar Output The possibility of increasing the total ‘+ * sugar output by the addition of total. sugar massecuite (crystal slurry) to the spray-dried total sugar will be studied. By Penick & Ford a. As soon as the total sugar unit in Cedar Rapids is operating satisfactorily, one of the two spray driers will be used in develop- ment work especially in studies on spray dry- ‘ing sucrose-total sugar mixtures. b. The committee gave Mr. Tousey their approval of his request for permission to suggest the use of total sugar to cereal makers. 3. By ROR Corporate Development. Department Determine the cost of producing orange flavored, extruded total sugar. BENZYL STARCH A. Present Status Dr. Brouillard stated that benzyl starch has been found useful in sizing glass fibers and as an emulsifier in specialty paper production. Due to its great ability as an emulsifier, the use of benzyl starch in foods should be investigated. He stated that no process optimization work will be required in Winston-Salem, but waste disposal and benzy1’( alcohol recovery are the critical problems for study by ROR. Lest eesos