Stock of DNA Plant Technology Corp. jumped $4 on Tuesday to$8.50 after the company said its joint venture with Du Pont hasreached an agreement to supply Eagle Snacks Inc., anAnheuser-Busch company, with an improved canola oil forfrying potato chips.
The joint venture, InterMountain Canola Co., has developedimproved canola seed varieties that yield oil with only 6percent saturated fat and that, unlike other canola oils, issuitable for frying because it is highly stable when heated.
InterMountain expects sales of $5 million to $6 million thisyear, the majority of which will be to Eagle Snacks. RichardSykes, DNAP vice president for finance, said DNAP will receive40 percent of the venture's profits, corresponding to its equityholding.
InterMountain was formed following six years of collaborativedevelopment between DNAP and Du Pont on new breedingtechniques for improved canolas. DNAP (NASDAQ:DNAP) ofCinnaminson, N.J., estimates the annual U.S. market for foodprocessing oils at $3 billion. -- KH
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