ABSTRACTA cell‐free extract (CFE) ofGluconobacter oxydanswas encapsulated in milkfat, and used to generate acetic acid from ethanol as a means of enhancing flavor in foods, such as cheese. Factors affecting the activity of the CFE were evaluated to establish conditions that would allow gradual synthesis of acetic acid in milkfat microcapsules. Optimum pH for conversion of ethanol to acetic acid was 8.3. A pseudo Kmand Vmaxwere determined as 7.6 ± 10‐3M and 55 μmol/1‐min, respectively. Concentrations of acetic acid in microcapsules with the highest level of encapsulated CFE increased gradually over 40 hr to 75 μg/ml of capsules during incubation at 22°C. No measurable acetic acid was produced from appropriate
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