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TWST: Can we start off with a quick introduction to Danisco (Copenhagen:DEMC.CO)?

Mr. Duch-Pedersen: Over the last few years, Danisco has been focusing its businesses on food ingredients. We’ve made a number of acquisitions and I think today we are recognized as one of the largest players in the functional food ingredients industry. We’ve also been building our portfolio and position around the world and we’re now coming to a finalization of that work, although, of course, when we look forward we would still like to improve on our size by acquisition of some of the other players.

TWST: We had a chance to talk about 12 months ago. Can you run through some of the key developments that have occurred since then?

Mr. Duch-Pedersen: Yes, we have improved many of our positions especially within the functional systems, which are blends of food ingredients, where, a little less than a year ago, we bought German Town. We have now fully integrated that acquisition and that puts us in the position of being the number one player in functional systems for bakeries and the ice-cream industry in the US, amongst other places

TWST: Can you underline and describe your R&D efforts at Danisco and how important that area of activity is to your future growth?

Mr. Duch-Pedersen: Certainly, the key driver of growth in our business is our ability to innovate. And by that, we mean to constantly challenge what we do today so that we can put forward new ideas and suggestions to our customers, enhancing their product, giving new features which they can market and make more money on. Within the last years, for example, we have developed a couple of new enzymes. We’ve also developed a new specialized pectins and alginates, most of which is going into the ice-cream industry but also the bread industry.

TWST: And these are protected by patents?

Mr. Duch-Pedersen: Yes, they’re all protected by patents. We have more than 2000 live patents protecting our products and our businesses.

TWST: What do you see as your key differentiator vis-à-vis your competition?

Mr. Duch-Pedersen: We use a business model which we call the One Stop Supplier. We like to discuss with our customers about their recipes, what ingredients they’ll actually use in order to produce their product, and then we like to get an opportunity to modify the recipe by adding as many of our ingredients into the product as we feel it requires in order to achieve specified features. It can be taste, it can be texture, it can be shelf-life, and so on. So the approach is very much from a strong knowledge-base, adjusting the recipes and then supplying; as opposed to wanting to supply so and so many kilos of a product for so and so million dollars. Many of our customers, in fact, have a direct link into our EDP system and they have their own small library in our base where we can constantly update them with new developments and new ideas and also tell them about industry trends and so forth.

TWST: What will you be focusing on over the coming 12 to 18 month time frame?

Mr. Duch-Pedersen: These days, you know, the global environment is a little difficult in general, with lower growth and of course what is happening in the Middle East. Of course, there has been lower growth before and we will come back to more normal growth again, but nevertheless it won’t just happen like that. So, we will be focusing on our business and helping our customers make as much money as possible. Even more so, as a company we will focus on maintaining our bottom line and our margins more so than going after growth at the moment.