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Rotting is usually the result of bacterial action, but honey has natural antibacterial properties.
Honey is principally a saturated or supersaturated solution of a mixture of sugars with traces of other things which give it its flavour. It is hygroscopic so any bacteria in contact with it are quickly dessicated and die, and yeasts and fungi cannot develop in such a high sugar concentration. In addition to this, one of the bees' enzymes -- glucose oxydase -- converts a small amount of the glucose into gluconic acid and hydrogen peroxide, which adds to the bactericidal action.
Honey should never be watered down unless for immediate use otherwise the natural yeasts that are present in the honey may cause fermentation. For this reason also containers should always be kept capped otherwise the hygroscopic honey will absorb moisture from the atmosphere and gradually dilute itself.

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15y ago

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