CP Kelco to consolidate Canadian food business

By staff reporter

- Last updated on GMT

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Leading supplier of pectin and xanthan gum CP Kelco will next month
consolidate its Canadian food business through an Ontario-based
specialty chemical distributor, a move the firm says will not
disrupt supplies to customers.

The agreement, which encompasses sales, service and distribution, will be effective November 14, the firm announced yesterday. It expands an existing relationship between the two organizations.

"CP Kelco's Canadian food customers can now source their products through L.V. Lomas,"​ said Richard Calk, vice president of the firm's commercial operations. "L.V. Lomas provides a high level of technical expertise and we are pleased to expand our partnership with them."

According to Calk, the transition will be seamless. "Many of our customers are already working with L.V. Lomas in some way. Where there is a new relationship, we will contact customers quickly to ensure a smooth transition."

Brampton, Ontario-based L.V. Lomas currently handles distribution for CP Kelco's Consumer & Industrial business and is also a long-time distributor for CP Kelco's parent company, J.M. Huber Corporation.

CP Kelco said that customers with questions about the distribution agreement should contact their current local sales representative.

Earlier this week, the hydrocolloid firm became the latest in a list of ingredients companies to pass rising costs onto the market, announcing it is to raise prices across all of its product ranges.

The increases, of up to 8 percent, will affect the company's carrageenan, carboxymethyl cellulose (CMC), gellan gum, pectin and xanthan gum products. The changes will be effective as of December 1 2006, or as existing contracts expire.

Prices for CMC products will be raised by 5-8 percent across all market segments. Pectin and refined carrageenan will be raised up to 8 percent across all markets. Biogums (xanthan gum, gellan gum, welan gum and diutan) will be raised between 3-5 percent across all market segments.

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