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Strategic, asset-light expansion into functional beverages increases Halo’s addressable market and near-term revenue opportunity

Halo Collective Inc. announced that it is strategically expanding into the functional beverage market with a proposed stock-based acquisition of private company operating as H2C Beverages and the entering into of a distribution and manufacturing agreement with Elegance Brands Inc. Pursuant to the terms of the Distribution Agreement, Elegance has agreed to purchase USD30 million of Halo’s H2C and Hushrooms™ branded products during the 24-month period following the launch of the products and to distribute these products to retail outlets in respective legal states across the United States.

Kiran Sidhu, Halo’s Chief Executive Officer, commented, “Nootropic nutraceuticals is a relatively new health category that we believe is poised for robust growth. Our strategic acquisition of H2C Beverages will bolster Halo’s growth opportunities, even as the recreational cannabis industry faces over-supply issues in our California and Oregon markets. Elegance Brands is the perfect partner to manage and distribute H2C and our functional mushroom brand Hushrooms to mainstream consumers.”

Added Raj Beri, Elegance’s CEO and Founder, “Elegance has successfully established a distribution network with a potential reach to tens of thousands of outlets nationwide that uniquely positions for the significant growth expected in the beverages and functional mushroom markets. We believe that Halo’s innovative line of products will be strong sellers alongside our portfolio of brands all built around innovation, and we are excited to offer them to our expanding distribution customers.”

Acquisition of H2C Beverages

Halo has signed a definitive agreement to acquire 1285826 B.C. Ltd., a company focused on cannabinoids and non-psychotropic mushroom functional beverages. The H2C acquisition is expected to provide Halo with a toehold in one of the fastest growing sectors of the cannabidiol market, estimated to account for USD16 billion in U.S. sales by 2025, according to Brightfield Research1, as well as to directly participate in rising consumer consciousness toward the health benefits of consuming small doses of cannabinoids and functional mushroom extracts paired with adaptogens. H2C’s product portfolio includes a line of premium flavoured waters that are nano emulsified to maximize absorption and other plant-based beverages infused with cannabinoids, functional mushroom extracts with fulvic and humic minerals from the Rocky Mountains.

In consideration for all the issued and outstanding shares of H2C, Halo has agreed to issue 7,538,462 common shares in the capital of Halo. Closing of the H2C Acquisition is subject to the satisfaction of customary closing conditions, including, among others, the approval of the Neo Exchange Inc. The Company expects the H2C Acquisition to close in January 2022. Halo has also agreed to issue 603,077 Common Shares to an arm’s length finder in connection with the H2C Acquisition.

Distribution and manufacturing agreement with Elegance Brands

Halo has also expanded its collaborative relationship with Elegance by entering into the Distribution Agreement to propel the national distribution of beverages, capsules, and topical supplements under H2C and Halo’s functional mushroom brand, Hushrooms. This new category of functional supplements, nootropic nutraceuticals, will be marketed under three subcategories: active, relax and focus.

Under the Distribution Agreement, Elegance has agreed to purchase USD30 million of H2C and Hushrooms branded products during the 24-month Launch Period and to distribute these products to retail outlets in respective legal states across the United States. Elegance shall purchase the products at a price of up to 130 % of manufactured costs (including all direct costs, both third party and internal) incurred by the Company. All prices are exclusive of applicable taxes, including without limitation, sales, excise, use and property taxes, which shall be paid by Elegance. The Distribution Agreement is expected to deliver up to USD9 million of profit (before tax) during the 24-month Launch Period.

During the period from the effective date of the Distribution Agreement until the Launch Period, which is expected to last up to six months, Elegance will provide certain consulting services to Halo including with respect to the development of branding, marketing, and manufacturing best practices, product development, and sales strategies through to launch. Pursuant to the Distribution Agreement, Halo has agreed to issue USD2.5 million of Common Shares (the “Elegance Shares”) to Elegance in consideration for the consulting services to be provided by Elegance in connection with the branding, development, manufacturing, and distribution of the H2C and Hushrooms product lines. The Elegance Shares will be issuable in four equal monthly tranches of USD625,000 per tranche. The number of Elegance Shares to be issuable under each tranche will be equal to the quotient of USD625,000 (converted into Canadian dollars using the prevailing Bank of Canada exchange rate), divided by the greater of: (I) the volume weighted average price of the Common Shares on the NEO (or such other exchange on which the Common Shares are principally traded) for the twenty (20) trading days prior to the issuance of such Elegance Shares; and (II) the minimum price permitted by the NEO. The issuance of such Elegance Shares is subject to, among other things, the approval of the NEO.

1https://blog.brightfieldgroup.com/hemp-cbd-market-size#A-Look-Back

Tate & Lyle expands partnership into Greece, Bulgaria and the Republic of North Macedonia

Tate & Lyle PLC, one of the leading global providers of food and beverage ingredients and solutions, is expanding its successful partnership with distributor Azelis in Europe into three new countries, Greece, Bulgaria and the Republic of North Macedonia, from early 2022.

This means Azelis will now be the distributor of Tate & Lyle’s broad portfolio of ingredients and solutions, including its PROMITOR® Soluble Fibres, CLARIA® Clean Label Starches and Stevia sweeteners, to customers in 17 countries.

Azelis is already Tate & Lyle’s biggest distribution partner in Europe and have worked together since 2003. The strengthening of this partnership will allow Tate & Lyle’s customers in Greece, Bulgaria and North Macedonia to benefit from Azelis’ extensive capabilities in solution selling, application and technical services, as well as their market knowledge and supply chain excellence.

Tate & Lyle expands partnership into Greece, Bulgaria and the Republic of North Macedonia

Tate & Lyle PLC, one of the leading global providers of food and beverage ingredients and solutions, is expanding its successful partnership with distributor Azelis in Europe into three new countries, Greece, Bulgaria and the Republic of North Macedonia, from early 2022.

This means Azelis will now be the distributor of Tate & Lyle’s broad portfolio of ingredients and solutions, including its PROMITOR® Soluble Fibres, CLARIA® Clean Label Starches and Stevia sweeteners, to customers in 17 countries.

Azelis is already Tate & Lyle’s biggest distribution partner in Europe and have worked together since 2003. The strengthening of this partnership will allow Tate & Lyle’s customers in Greece, Bulgaria and North Macedonia to benefit from Azelis’ extensive capabilities in solution selling, application and technical services, as well as their market knowledge and supply chain excellence.

Beverage Partners International (BPI) has the great pleasure of announcing that moving forward, it will offer a licensing and distribution opportunity for SUMOL+COMPAL, a world-leading market player in the fruit beverages category.

SUMOL+COMPAL is the largest juice producer in Portugal, with a global footprint in more than 68 countries around the world. The proud owner of a varied portfolio of 16 brands, the company’s offering is split across 6 different segments: juices and nectars, soft drinks, water, snacks, vegetables and alcoholic drinks.

Moshy Cohen, CEO, BPI, commented: “We are very proud to partner with S+C in their rapid international expansion. S+C is a company with unique know-how in the juice based beverage market, and excellent brands that can significantly improve the capabilities and competitive advantage of BPI’s bottlers across the world.”

Nadia Franco, S+C, Head of New Business, Int’l, added: “Sumol and Compal have great momentum in international markets. Both brands present superior products and unique positioning that perfectly fit the most important consumer trends.

“We are excited to join BPI and present licensing opportunities for it’s bottlers and distributors network across the world. We love our business, our brands and what we do. We want to keep doing better. We improve continuously and we think positively.”

Complementing a healthy lifestyle

SUMOL+COMPAL bases its ethos on inspiration it draws from fruits, vegetables and water, all indispensable natural sources of nutrition, hydration and pleasure. The global market for juice-based beverages, both fruit and vegetable-based, is projected to continue to grow thanks to innovation in the category alongside consumer demand for products that enable a healthy lifestyle.

The drive for Health and Wellness is providing huge opportunities for pioneering beverage industry players. Rising interest in non-alcoholic drinks options and beverages that complement a healthy lifestyle means that SUMOL+COMPAL offers a dynamic opportunity within the beverage category, targeting consumers with tasty, nutritious fruit and vegetable ingredients via established brands and exciting flavours.

Flagship brand COMPAL is the market leader in the Juice category in Portugal, with over 60 % market share in the country as well as a global presence, owing its loyal consumer following to its delicious and nutritional juices and nectars – picked at the perfect moment to ensure the final product is always rich in nutrients, and keeps the flavour and aroma of freshly-picked fruit.

SUMOL, meanwhile, is a slightly sparkling drink made with real fruit juice and pulp. With a wide and unique range of fruit flavours and a 62.4 % market share in Portugal, it is perfect for consumers looking for refreshment without compromising on their health and wellness lifestyle.

Meeting demand for healthy, low calorie beverages containing real fruit and vegetable ingredients, SUMOL+COMPAL’s natural products provide a unique offering that plays into its consumer for individualised products, with a unique range of fruit flavours available in its striking and iconic branded packaging.

The global pectin market is estimated to reach USD 1.87 billion by 2026 and is anticipated to grow at a CAGR of 6.4 % from 2018 to 2026. Pectin market is projected to witness significant growth over the forecast period. Increasing health consciousness among consumers and various health benefits of pectin products is expected to drive the global market over the forecast period.

Pectin are plant-derived compounds, a structural heteropoly saccharide that is contained in primary cell walls of the terrestrial plants. It is mainly extracted from citrus fruits, apples, apricots, cherries, oranges, and carrots. Commercially, it is available in the form of white to light brown powder. The industry is characterized by companies characterized by medium level of integration in the value chain. Packaging and shipping play an important role in integrating the value chain. This helps the companies to incorporate their businesses in a cost-effective way.

Suppliers include companies which are involved in the production & distribution of processes raw materials such as apple, citrus, and others. The rising shortage of raw materials and increased import for Brazil and European countries is resulting in high bargaining power to the suppliers. In addition, low threat of backward integration from manufacturers, except some of the major and giant market players is also resulting in high bargaining power of suppliers.

The pectin market witnesses an external threat of substitution from natural gum and Citri-fi. Citri-fi is natural functional fibers, which are derived from citrus fruits. They offer hydrocolloidal properties, which is significant for high water holding capabilities. There are also some synthetic alternatives such as polyurethane, but these are usually not considered suitable for skin contact applications. However, the various advantages of pectin over these products are expected to lower the threat.

Pectin extracted from this raw material are used for high cholesterol high blood pressure, & blood sugar, joint pain, weight loss, prevent colon & prostate cancer, high triglycerides, gastroesophageal reflux disease (GERD) and diabetes. In addition, some people also use pectin to prevent poisoning caused by strontium, and other heavy metals.

Despite the shortage in the supply of raw material, some of the major players are also trying to increase their production capacity to meet the demand. For instance, Cargill acquired FMC’s plant to boost their pectin production capacity. The market is highly fragmented and competitive. In addition, it also experiences the presence of small-scale as well as giant players. The key and major companies are investing in R&D activities and frequently involved in merger and acquisition to increase their market share and product portfolio. Some of the companies that have a significant influence in the industry include DuPont Nutrition & Health, FMC Corporation, CPKelco, Herbstreith & Fox, Devson Impex Private Limited, Cargill Incorporated, B&V srl. and Yantai Andre Pectin Co. Ltd.

Growth in food & beverage industries, in emerging economies, is expected to drive the Asia Pacific market. The market is projected to grow rapidly in the Asia Pacific region, owing to the changing lifestyle of consumers in emerging economies including, China and India. The rising health consciousness among consumers and the presence of major players in North America is projected to positively drive the growth of the market over the forecast period.

The industry is being disrupted by significant trends with consumers, products, brands, and distribution. As niche players eat up more of the market share, established companies must evolve to stay competitive.

From the traditional powerhouses to new entrepreneurial start-ups, non-alcoholic beverage companies are operating in a whole new world as the industry is undergoing monumental shifts. For example, with an eye on health-conscious consumers, PepsiCo purchased the sparkling water company SodaStream in 2018, and after Coca-Cola moved into the tea market a decade ago with its organic, fair-trade Honest Tea subsidiary, the company is dipping its toe in the rapidly growing coffee segment by buying Costa Coffee in 2019. Meanwhile, new entrant Boxed Water is nudging plastic bottles off the shelves with its paper-based packaging.

With today’s consumers thirsty for healthy and eco-friendly options, massive changes are coming.

Please download the full article as pdf-file under https://bit.ly/2z2bOKc.

Customers will be offered a broad Cargill range of food ingredients and solutions for various applications to make their business a success

Caldic and Cargill have reached an agreement making Caldic Ingredients Deutschland GmbH the exclusive distribution partner for Cargill’s starches, sweeteners and texturizers for food applications in Germany and Austria. The collaboration with Cargill will expand Caldic’s offering to customers in food markets such as bakery, convenience, confectionery, dairy and beverage.

Caldic Ingredients Deutschland GmbH is part of the Caldic Group, serving the Food segment, as well as Life Science and Industrial applications. In recent years, Caldic and Cargill have successfully developed customer relationships and enabled food manufacturers to win in their markets in various other European countries.

reasons to initiate this partnership. “We are very pleased with this agreement, because Cargill and Caldic are both aiming for leadership positions in their chosen market segments”, says Stephan Neis, Managing Director of Caldic Ingredients Deutschland GmbH. “When it comes to developing innovative solutions with a service-oriented character, we are clearly aligned with Cargill. With an extended on-trend product portfolio, tailored manufacturing and state-of-the-art application services there is no doubt we will take our full-service distribution model to the next level.”

Alain Dufait, Managing Director for Cargill Starches, Sweeteners & Texturizers business in Europe, adds: “Caldic has an excellent customer approach and a strong organization in Germany. We have been impressed by Caldic’s way of developing solutions for their customers and their entrepreneurial spirit. We are enthusiastic about this partnership, because it will allow us to expand our solutions to the German and Austrian food market.”

Brenntag North America, Inc., part of Brenntag Group, one of the global market leaders in chemical distribution, announces a new collaboration with Silvateam for the exclusive distribution of Pectin in United States & Canada.

Silvateam has dedicated over 160 years to plant-based extracts. Located in Northern Italy, Silvateam produces products used in a large range of applications such as food, beverages, and animal health and nutrition.

Brenntag North America has been appointed the exclusive distributor in North America for the distribution of the Silvateam Pectin Line:

  • Aglupectin

“We are excited about our new relationship with Silvateam and the continued expansion of our value- added, functional ingredient options. The combination of our Food & Nutrition team, new food application lab, and Silvateam’s technical expertise position us well to provide quick solutions to our customer’s formulation questions when using pectins,” stated Larry Davis, Marketing Director, Brenntag North America.

Brenntag will focus on Silvateam’s versatile, clean label, pectin products. Pectin is a natural product widely used for its gel formation, thickening, and stabilizing properties in a variety of applications. Applications include fruit juices, jams, marmalades, dairy, confectionary, and bakery.

“Silvateam is a fast-growing company with an excellent reputation in the industry. We are excited to work alongside Brenntag North America to promote our range of specialty pectin,” said Alessandro Di Mase, CEO of Silvateam. “Brenntag’s strong technical expertise, service orientation, and sales team offer the market our tailor-made solutions for texture, mouthfeel, viscosity, flavor release, and suspension.”