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BEVERAGE

Holista & Fruit Hub to produce three ingredients for bubble tea sector
Saturday, 19 October, 2019, 16 : 00 PM [IST]
Kuala Lumpur
Holista CollTech Ltd (Holista), a food ingredients specialist listed in Australia, and SunFresh Fruit Hub Sdn Bhd (Fruit Hub), which processes and packages fruit juices and beverage ingredients, have announced a research and development collaboration to produce three key healthy ingredients for the global bubble tea industry, a popular global drink fad that has raised serious concerns about its effect on diabetes and obesity.

Bubble tea originated in Taiwan and has spread rapidly to other parts of Asia. The Taiwan bubble tea market alone is expected to grow to $3.21 billion by 2023 from $1.96 billion in 2016, according to Allied Market research.

An independent market analysis firm, Straits Research, has estimated Malaysia’s bubble tea market at $49.8 million (RM 209 million) and growing at a rate of 6.9 per cent between 2019 and 2026.

Holista and Fruit Hub said that the bubble tea sector was growing rapidly, but many consumers are not aware of the consequences to personal health.

A typical 500ml Bubble Tea drink contains at least 8.5 teaspoons of sugar, although customers can opt for a less-sweetened product. Each cup can contain anywhere between 281 and 640 calories.

The two companies will co-develop healthy versions of three Bubble Tea ingredients without altering the taste and mouth-feel.

All three ingredients will have a lower glycaemic index (GI), which measures a food's impact on blood sugar.

A lower GI is healthier as more time is taken to digest and absorb glucose. A higher GI spikes up blood sugar levels, causing diabetes and increasing the chances of obesity, stroke and heart disease.

The first is low-GI pearls (tapioca starch balls measuring 0.8-1cm each, which account for about a third of the drink’s calorie count).

Holista will combine its patented GI-Lite, an all-natural formula with tapioca starch to lower the GI without any discernible change in taste or texture.

Fruit Hub is processing the pearls at its facility in Lanchang, Pahang State, Malaysia, using a formula of its Taiwanese partner, YongDa Food Technology Co Ltd. Subject to final tests, the partners expect to lower the GI of the pearls from the 70-75 currently to below 55.

The second is a sugar syrup using Holista’s proprietary low-GI and low-calorie sugar, 80Less, that has 80 per cent fewer calories and yet delivers the same taste sensation. This not only reduces unhealthy effects, but also lowers costs for manufacturers and vendors.

The third is Holista's proprietary low-GI sugar caramel (brown sugar) which retains sweetness with lower calories. Made from molasses, it is used as a pre-pour to sweeten the 'pearls'or as a medium to cook them.

All three products will be tested by the Sydney University GI Research Service (SUGiRS) by the end of next month before hitting local and international markets by the first quarter of 2020.

It has already validated the low-GI versions of flour-based noodles and flatbreads co-produced by Holista with scores that are significantly lower than products currently available.

Fruit Hub’s parent company in Taiwan supplies tapioca pearls to several Bubble Tea chains in Greater China, with a combined network of over 5,000 stores.

It has started manufacturing the pearls in Lanchang, Malaysia, with production expected to hit 12.5 tonne a day or 3,00,000 tonne - equivalent to six million cups of the drink - a month by December 2019. HCT and Fruit Hub, through this collaboration, will provide the low GI ingredients to some of this manufacturing.

According to a popular online food delivery app, Bubble Tea orders in Southeast Asia increased 3,000 per cent year-on-year (y-o-y) in 2018. The app is connected to the 4,000 Bubble Tea outlets in the region, which are growing at a rate of 200 per cent.

Its data also showed that consumers in the region gulp down at least four cups a month, led by Thailand (six cups), the Philippines (five) and three each in Malaysia, Singapore and Indonesia.

Rajen Manicka, founder and chief executive officer, Holista, said, “The bubble tea fad is not going to go away. The challenge is to offer a healthier version which can significantly reduce the potential of higher incidence of diabetes and obesity.”

“We are combining science with the market reach and understanding of the needs of bubble tea manufacturers and vendors to offer a healthier alternative without increasing cost of production,” he added.

Foong Wai Fong, managing director, Fruit Hub, said, "This is a Malaysian collaboration by an Australian company which can transform the global bubble tea industry for the better.”

“Fruit Hub has a strong network among the major bubble tea chains. We are confident that these three ingredients will make a real difference and can take the creative beverage industry to a new level - a tastier and healthier version in which consumers can enjoy the drink without health concerns,” she added.

“It is our vision that this endeavour will place Malaysia as a centre of innovation in the beverage sector,” Foong said.
 
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