With the change of society, the consumer’s pattern towards food consumption has and is changing dramatically. A number of agricultural food wastes have attracted considerable attention as potential sources of bioactive phenolics, which can be used for various purposes in the functional food industry, apple peel waste in particular, since they are inexpensive and available in large quantities. Nowadays, consumers' demand for calorie products, specifically for new sweet bakery products, which have better appeal, taste and convenience from conventional sweet bakery foods has significantly raised in an attempt to limit health problems, to lose or stabilize their weight, and to work within the frame of a healthier diet. Traditional sweet bread is one of the most consumed sweet baked product in Romania. Due to the fact that there are 415 millions of diabetics worldwide, from which 1,5 millions in Romania, according to the International Diabetes Federation (IDF) and the prevalence is increasing, so too the costs for healthcare, being also an economic burden for every country. Obesity has also touched alarming limits, the prevalence in 2015 being more than 600 million obese, according to the WHO.The use of replacers to reduce the sugar is a hot topic for the food industry as it is an approach which requires only low cost in terms investments and ingredients. However, most of the approaches failed due to the different taste of the products and thus the lack of consumer acceptance. In the field of sugar reduction mainly high intensity sweeteners (like stevia, aspartame, sucralose or saccharin) are used but even they have a low caloric impact, in most cases they demonstrate an undesired long lasting sweetening impression and in higher concentrations they often have a bitter or metallic off flavour. BIO-SWEET will be addressing this challenge from the processing side by using biotechnological sugar reduction via lactic acid bacteria (LAB) fermentation producing erythritol.