Larex: Building Science From Trees
Originating in 1993 with a focus on extracting natural components from trees for consumer benefits, Larex, White Bear Lake, MN, supplies natural arabinogalactan (AG), a byproduct of wood, that has health benefits. The company in 1996 completed a 20,000 square foot manufacturing facility in Cohasset, MN; the facility is GMP and kosher certified, GRAS affirmed and Japanese approved and was expected to have completed European approval by year end. Larex had its first full year of sales in 1997 and hasn’t looked back since.
According to vice president/chief operating officer Bo Nickoloff, “This is the first natural water soluble polymer to be introduced to the market in over 30 years.” The patented product is FDA-approved as a food additive and is self-affirmed GRAS. Currently Larex’s sole product offering, AG has application in immune stimulation and enhancement, as a prebiotic fiber and in skin care applications for exfoliation purposes. “Our greatest growth has been in the dietary supplement market,” said Mr. Nickoloff, “but the nutritional beverage and food companies have also shown interest. We are working with several Fortune 100 companies, currently testing products for applications such as juice and cereal,” he said.
The AG product has economic and environmental advantages as well. “AG comes from wood that was previously being thrown away,” explained Mr. Nickoloff. “We clean up the wood chips, extract the AG and sell the waste for particle board applications. There are no chemicals involved—only water, wood and steam—and this is a highly efficient process.”
Right now consumer awareness for AG is in the early stages, said Mr. Nickoloff, but it is growing. “A key for us has been our focus on R&D. We have committed a large portion of our budget to the technical application of our product. We spent more than $1 million in 1999 on clinical research, mostly human studies,” he commented. For example, a study was started in November at the University of Minnesota tracking 100 people for six months. The study will analyze blood markers to show that AG has a positive effect on immune stimulation and cholesterol lowering.
While the AG line still has tremendous potential, the company is also investigating other opportunities. “We are looking at other tree-based compounds,” confirmed Mr. Nickoloff. “AG will be the base of our business, but we see applications in at least two or three other areas.” These products are still several years down the road.
For the future, said Mr. Nickoloff, “Our strategy is to find strong partners to take the product to new levels in different market segments, whether through exclusivity in distribution channels or geographic regions. We will also continue to commit resources to developing a strong technology platform upon which our customers can rely to support them with clinical research.”
He concluded, “We believe it’s important for companies that want to be leaders to commit the resources to continue strong science. This will help consumers understand what the products are doing and this is where we plan to stand out in the future.”
Larex
4815 White Bear Parkway
White Bear Lake, MN 55110
Telephone: 651-636-2628; 800-386-5300
Fax: 651-636-1583
E-mail: bnickoloff@larex.com
Website: www.larex.com
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