The Israeli food tech startup Better Juice can now use its microorganisms to reduce the glucose, fructose, and sucrose of up to 250 million liters of fruit juice every year.
Better Juice uses natural enzymes to convert sugars in juice to non-digestible compounds, like dietary fibers. The technology can reduce up to 80 percent of the simple sugar content in fruit juices and fruit-based condiments without affecting the naturally occurring nutrients, including vitamins, minerals, and antioxidants.
Its manufacturing plant, which is the first of its kind to place its patented enzymes in beverages, has now transitioned to full commercial production, and will be able to reduce the sugar in up to 250 million liters of fruit juices each year.
To read the full article from Ariel Grossman, visit nocamels.com .
Addition significantly expands ADM’s wide array of innovative, groundbreaking products and solutions to help meet $775 billion global demand in health & wellness
ADM, a global leader in nutrition and agricultural origination and processing, announced a significant expansion of its broad portfolio of health and wellness products and solutions with an agreement to purchase U.S.-based Deerland Probiotics & Enzymes.
“The microbiome represents one of ADM’s six strategic growth platforms, and with global demand for health and wellness products estimated at more than $775 billion, today’s investment represents a significant step forward for ADM,” said ADM Chairman and CEO Juan Luciano. “Deerland Probiotics & Enzymes is a leader in probiotic, prebiotic and enzyme technology, with global sales and manufacturing in the U.S. and Europe, and is a perfect fit for our growing portfolio of functional ingredients and solutions for health-conscious consumers. We expect the addition of the Deerland capabilities and portfolio to deliver synergies for our Health & Wellness business and support growth across our Nutrition business unit.”
Deerland Probiotics & Enzymes is a trusted global provider of probiotic and dietary supplements using probiotic, prebiotic, and enzyme technology, including 12 branded product lines serving customers in areas including digestive health, immune health, women’s health, food intolerance, sports nutrition, cellular repair, and systemic and cardiovascular health. The company’s products and solutions include spore probiotics, which offer enhanced stability for a wider use in food and beverage, pet nutrition and supplement applications. Based in Kennesaw, Georgia, U.S., Deerland operates five manufacturing facilities, one fermentation facility, and eight R&D and quality control laboratories globally.
“The hand-in-glove fit of Deerland’s vast portfolio of branded technologies, clinical studies and world-class dosage form production capabilities combined with ADM’s Health and Wellness solutions is strong and unparalleled, allowing us to provide our dietary supplement, food/beverage and companion animal customers with a much broader array of products and capabilities,” said Scott Ravech, Deerland Probiotics & Enzymes CEO. “The Deerland team could not be more excited at the opportunity to be a part of the ADM family.”
The Deerland acquisition is the latest in a series of ADM strategic investments to build a full-scale global Health & Wellness business to help meet fast-growing demand for food, beverages and supplements that enhance health and wellbeing. Growth initiatives have included acquisitions like Protexin and Biopolis, organic capacity investments to expand probiotics production at our Valencia facility, and our recently-announced joint venture and previous partnership with Vland. With the revenue contribution from the addition of Deerland, annualized revenue for Health & Wellness will exceed $500 million.
The transaction, which is subject to regulatory approval, is expected to be completed in the coming weeks; when that occurs, Deerland’s approximately 320 colleagues will transfer to ADM.
Novozymes, one of the world’s largest suppliers of enzyme and microbial technologies headquartered in Denmark, has entrusted GEA with the turnkey fitting of a major new plant to produce plant-based proteins for the plant-based food industry. The volume of this order is well into the high double-digit million-euro range.
GEA is further expanding its market position in the dynamically growing new food market with one of the biggest orders in the company’s history. Novozymes, the world’s largest supplier of enzyme and microbial technologies headquartered in Denmark, has entrusted GEA with the turnkey fitting of a major new plant to produce plant-based proteins for the plant-based food industry. The volume of this order is well into the high double-digit million-euro range. Building the new factory in Nebraska, USA, will start later this year and is expected to be completed towards the end of 2023.
“The demand for foods that have a demonstrably lower environmental footprint than conventionally produced products is growing enormously,” says GEA CEO Stefan Klebert. “With our technologies and experience in scaling industrial applications, GEA is ideally positioned to serve the new food market and thus contribute to our corporate purpose of ‘engineering for a better world’,” says Klebert. “We are pleased to partner with Novozymes in this strategic project.”
For decades, Novozymes has been developing fermented catalytic (i.e. industrially produced) proteins – enzymes – that are the basis for many industrial applications. Only recently, the company announced its intention to invest DKK 2 billion in the growth market for functional proteins (advanced protein solutions) for the food industry. “This investment in a new, state-of-the-art production line in Blair, Nebraska, underscores our commitment to feeding the world sustainably and demonstrating the true strength of biotechnology,” says COO & Executive Vice President Graziela Chaluppe dos Santos Malucelli, Novozymes.
The new plant covers the manufacturing steps from harvesting to separation of proteins. According to Heinz-Jürgen Kroner, Senior Vice President Liquid Technologies at GEA and responsible for the company’s alternative foods business, both partners are united by their ability to build scalable, reliable, and highly efficient plant systems. “This project is exceptional in many respects. The intensive bidding phase saw us planning the production lines for the ingredients less than a year later. We now aim to implement the project at the same pace. The partnership is a very rewarding experience.”
GEA will now construct the process systems, which include membrane filters, mixers, homogenizers, heat exchangers, pasteurizers and UHT units, cleaning and filling systems as well as the pump and valve technology. Installation will start mid-2022. The production capacity initially built can easily be expanded to multiply the capacity in the future as demand grows.
Chr. Hansen Holding A/S today released its 2025 Strategy with the ambition to create a differentiated bioscience company with focus on its microbial and fermentation technology platforms putting Food Cultures & Enzymes and Health & Nutrition at the center of its new strategy. During the strategy period which runs until the end of the financial year 2024/25, Chr. Hansen’s long-term financial ambition is to deliver mid- to high single-digit organic growth, averaged over the period. Furthermore, the Company plans to increase its underlying EBIT margin before special items, before portfolio changes and currency impacts, with efficiency gains and scalability benefits from operations, as well as synergies from recent acquisitions, to be partly reinvested into the business during the strategy period. Average growth in free cash flow before acquisitions and special items is expected to exceed the average absolute EBIT growth.
CEO Mauricio Graber says: “Chr. Hansen has undertaken a tremendous journey since its start as an ingredient supplier to the dairy industry, and I feel very proud to lead a company with such a strong purpose and so many exciting growth prospects. With the launch of our 2025 Strategy we are stepping up our game to unlock the next wave of value creation by advancing Chr. Hansen into a focused global bioscience player that specializes in fermentation technology and microbial solutions. With this focus we will be uniquely positioned and clearly stand out in our industry.”
“At Chr. Hansen, we will continue to pioneer microbial science to improve food and health, for a more sustainable future. Already today, more than 80 % of our revenue contribute to the United Nation’s Sustainable Development Goals, and we are committed to continuing to leverage the Power of Good Bacteria™ which is also reflected in our newly defined purpose: ‘Grow a better world. Naturally.’”
Underlying markets remain attractive
During its strategy process, Chr. Hansen has conducted a thorough review of industry dynamics, consumer trends and growth opportunities in its existing segments. Megatrends such as a growing world population, demographic shifts, increasing health awareness and a strong climate change agenda continue to support Chr. Hansen’s business model. Growth prospects in the Company’s underlying markets remain attractive.
2025 Strategy (‘where to play’)
Under its 2025 Strategy, Chr. Hansen has defined four strategic focus areas that set the framework for its future growth trajectory: REINVEST, LEVERAGE, EXTEND and REVIEW.
REINVEST in core platforms
Chr. Hansen has been the ingredient supplier of choice for the dairy industry for many decades and has also built a strong microbial business for animal feed, dietary supplements and infant formula over the last thirty years. During the strategy period the majority of the absolute growth will come from the core platforms. As such Chr. Hansen will continue to prioritize and invest in Food Cultures & Enzymes, Animal and Human Health. Innovative products, launched across all business areas, are expected in the strategy period, both in existing and new product categories, for example probiotic solutions for foods and pet food.
LEVERAGE the Microbial Platform to grow lighthouses and new areas
Chr. Hansen continues to see many attractive growth opportunities to leverage its technology platform to develop solutions for new applications and end markets. The Company remains committed to further develop its existing lighthouses Bioprotection, Plant Health and Bacthera, and is today launching a new lighthouse in Fermented Plant Bases, where Chr. Hansen sees itself uniquely positioned to gain a meaningful share in this fast-growing market.
“Each of the four lighthouses holds tremendous potential. We are breaking new ground, and I am truly excited about the journey that lies ahead of us when it comes to fighting food waste, shaping the future of food and contributing to sustainable farming and the development of pharmaceuticals based on bacteria,” says CEO Mauricio Graber.
Lighthouses at a glance:
- Bioprotection: Special culture range that prevents spoilage, reduces food waste and increases safety of dairy and other foods. The long-term market opportunity is estimated to be around EUR 1 billion with an addressable market of around EUR 200 million in 2025
- Fermented plant bases: Fermentation solutions for spoonable and drinkable fermented milk alternatives and fermented beverages. The long-term market opportunity is estimated to be more than EUR 100 million with an addressable market of less than EUR 100 million in 2025
- Plant health: Crop protection solutions with a focus on bionematicides, biostimulants and biofungicides. The long-term market opportunity is estimated to be more than EUR 1 billion with an addressable market of around EUR 400 million in 2025
- Bacthera: Joint venture with Lonza AG in contract manufacturing for live biotherapeutics. The long-term market opportunity is estimated to be more than EUR 1 billion with an addressable market of EUR 150-200 million in 2025 (only clinical trial market)
EXTEND Microbial Platform through M&A and R&D partnerships
During the strategy period Chr. Hansen intends to further strengthen its technology platform across its competencies, such as cultures and probiotics, dairy enzymes and value-added fermentation through acquisitions and the expansion of the R&D partner network. The recent acquisitions of HSO Health Care and UAS Laboratories are examples of this, and both offer attractive commercial, operational and R&D synergy opportunities.
REVIEW strategic options for non-microbial assets
Chr. Hansen’s Natural Colors division is the global market leader for natural colors. Whilst the division shares the Company’s overall purpose and stand-alone offers an attractive return profile, synergies with the Microbial Platform are limited. As already communicated on July 2, Chr. Hansen has therefore decided to initiate a strategic review of its Natural Colors division. The process is progressing well.
Implementation of 2025 Strategy (‘how to win’)
Chr. Hansen has defined five dimensions along which the Company is going to implement the strategy:
- CUSTOMERS: Chr. Hansen will further broaden its customer base and expand its global reach to become a truly global bioscience company. The Company aims to increase its presence in emerging markets. Secondly, Chr. Hansen will continue to invest in application development, sales and marketing resources to positively influence end-market demand and advance its digital agenda to deliver best-in-class service to its customers
- INNOVATION: Bringing new innovations with a sustainable impact to market remains a top strategic priority. As such Chr. Hansen will allocate around 75 % of the R&D spending during the strategy period towards new product development. Furthermore, the Company will intensify its efforts to bring products to market faster
- OPERATIONS: Chr. Hansen continues to see ample room to realize further operational efficiencies in its production through process innovations and automation/digitization whilst driving scalability benefits through future capacity expansions. Capex spending as a percentage of sales is expected to decline over the period compared to 2018/19
- PEOPLE: As Chr. Hansen grows as an organization it is important to safeguard the Company’s unique purpose and performance culture. Furthermore, the Company will continue to invest in talent management and is committed to driving diversity
- PURPOSE: As part of its new strategy, Chr. Hansen will accelerate its sustainability ambition and commits to the Science Based Targets initiative to limit global temperature rise to 1.5 degrees by reducing its environmental footprint with investments into renewable energy, recyclable packaging and circular biowaste management.
New financial and non-financial ambitions until 2024/25
Chr. Hansen has an ambitious financial agenda and remains committed to delivering industry-leading profitable growth and a strong cash flow generation. From the base year of 2018/19, Chr. Hansen aims to deliver:
- Mid- to high single-digit organic growth, averaged over the period
- An increase in EBIT margin before special items, before portfolio changes and currency impacts. The margin improvement is expected to be based on efficiency gains and scalability benefits from operations as well as synergies from recent acquisitions, which will be partly reinvested into the business during the strategy period
- An average growth in free cash flow before acquisitions and special items exceeding the average growth in absolute EBIT before acquisitions and special items
- The financial ambition is based on constant currencies and does not take future acquisitions or divestments into account, even if future activities are likely. The financial ambition is also based on the current political and economic environment and projections, and any deterioration may impact the ambition negatively (please see next page for details on COVID-19).
Chr. Hansen has set the following sustainability and non-financial ambitions:
Products: More than 80 % of revenue from sustainable products that contribute to the United Nation’s Sustainable Development Goals 2, 3 and 12; 25 million hectares covered with natural solutions (Plant Health and silage inoculants); 200m people consuming Chr. Hansen’s probiotic strains; 2 million tons of yogurt waste reduced
Planet: As part of its commitment to limit global temperature rise to 1.5 degrees, Chr. Hansen aims for 100 % renewable energy, circular management of biowaste and recyclable key packaging materials
People: The Company aims to have introduced 100 % of its new employees to its culture model, have a 1:1 equal ratio between female employees and women in management, have a top 25 % score in its employee engagement survey and reach a lost-time incident frequency of below 1.5
Capital allocation priorities
Chr. Hansen’s capital allocation framework remains unchanged. Organic growth remains the number one priority followed by bolt-on acquisitions which the Company seeks proactively to strengthen its Microbial Platform, particularly in the dynamic and evolving Health & Nutrition markets. Thirdly, Chr. Hansen will maintain the policy of issuing an ordinary dividend of 40-60 % of net income . Finally any excess cash will be distributed as extraordinary dividends or share buy-backs.
Impact of COVID-19 on market outlooks
The global COVID-19 pandemic has changed consumption patterns and consumer choices and has put supply chains globally under pressure. As an essential part of the food supply chain and supplier to the health industry, Chr. Hansen did not see material impacts to its operations or business model from the pandemic. However, during a global recession, potentially lower protein consumption (especially in emerging markets) and delayed or reduced demand from customers may impact Chr. Hansen’s ability to drive sales. That said, the pandemic crisis also provides new opportunities, for example through increasing health awareness and interest in probiotics with immunity concepts.
The acquisition of PrecisionBiotics Group will advance Novozymes’ activities in the area of biological solutions for human oral and gut health – one of the growth pillars in the strategy Better business with biology.
Novozymes announced that it has acquired PrecisionBiotics Group Limited. Based in Cork, Ireland, PrecisionBiotics Group holds a leading position within probiotics for human gut health and is well positioned with several clinically backed products already in the market.
“This acquisition fits well with our strategy, Better business with biology, where we have focus on human health as one of our opportunities for growth. With this investment, we take another important step in implementing the strategy and setting a foundation of growth for our business,” says Ester Baiget, President and CEO of Novozymes.
Combining the power of probiotics and enzymes
PrecisionBiotics Group has strong expertise within clinical development, upscaling and commercialization and is well situated in Cork, Ireland, home to a leading academic society within human gut health.
“We welcome employees in PrecisionBiotics Group to Novozymes. PrecisionBiotics Group brings in complementary technologies, a similar science-based approach and a matching culture. With our unique expertise within discovery and enzymes and PrecisionBiotics’ strong capabilities and network within probiotics for human health, we will be in a unique position. It’s a position where we can expand market opportunities and develop new and highly efficient products,” says Ester Baiget.
“By becoming a part of Novozymes, we will get a global presence across businesses and new capabilities within science and discovery of new strains. This will help us to grow by developing new products where we can combine enzymes and probiotics,” says Barry Kiely, CEO and co-founder of PrecisionBiotics Group.
When combined, enzymes and probiotics synergistically work hand-in-hand to address health benefits from different angles in more powerful ways.
“Novozymes is a strong company based on science with a global market presence and a purpose to find biological solutions for better lives in a growing world. We look forward to speeding up the development of our pipeline and to a global roll-out of products to accelerate growth,” Barry Kiely says.
Novozymes has established OneHealth to market solutions within human health under one umbrella. The aim is to help people live healthier and better lives by use of probiotics and enzymes.
Chr. Hansen delivers solid half-year result of 9 % organic growth and maintains overall outlook for the full year.The growth comes from all business areas: Food Cultures & Enzymes 10 %, Health & Nutrition 11 % and Natural Colors 5 %
Solid organic revenue growth of 9 % in the first half of 2018/19: Food Cultures & Enzymes 10 %, Health & Nutrition 11 % and Natural Colors 5 %. EBIT before special items increased by 10 % to EUR 150 million, corresponding to an EBIT margin before special items of 27.0 % up 0.8 %-point compared to last year. In Q2, organic growth was 8 %, and EBIT before special items increased by 11 %. The overall outlook for 2018/19 remains unchanged.
CEO Mauricio Graber says: “We continued the solid momentum, with Food Cultures & Enzymes delivering strong organic growth with an increasing contribution from volume in Q2, which was in line with our expectations. Towards the end of Q2, we launched CHY-MAX® Supreme, a truly innovative enzyme which raises the bar for what cheesemakers can expect from coagulants. Organic growth in Health & Nutrition was solid and with a more balanced growth contribution between Human Health and Animal Health compared to what we saw in Q1, although livestock farming economics in North America remain challenging. Yesterday, we announced a joint-venture with Lonza AG, which marks a quantum leap for Chr. Hansen’s Human Microbiome lighthouse and which will create a global pioneer and partner of choice for production of live biotherapeutic products. In Natural Colors we secured important conversions in North America, but this was to some extent offset by weaker demand from Latin America in particular.”
“Our EBIT margin before special items in the first half of the year increased by 0.8 %-point and was driven by improved margins in all business areas. In FC&E, we achieved a gross margin benefit of more than 1 %-point from the ramp up of the new capacity in our facility in Copenhagen, which more than offsets the increasing investments we are making in the business. We continue to pursue strong and profitable organic growth while also investing significantly for the future.
“The progress in the first half year makes us confident about our overall outlook, which is maintained and in line with our long-term financial ambition.”
Chr. Hansen realizes solid organic growth of 10 % in the first three months of the financial year 2018/19, delivering in line with our „Nature’s no. 1 – Sustainably“ growth ambitions.
Chr. Hansen reports solid organic revenue growth of 10 % in the first three months corresponding to 6 % reported growth due to adverse currency impacts: Food Cultures & Enzymes 10 %, Health & Nutrition 17 % and Natural Colors 6 %. EBIT before special items increased by 9 % to EUR 71 million, corresponding to an EBIT margin before special items of 26.3 % which was up 0.9 %-point compared to last year. The overall outlook for 2018/19 remains unchanged.
CEO Mauricio Graber says: “We have had a solid start to the year, with Food Cultures & Enzymes delivering strong organic growth with contributions from volume and EUR pricing, in line with our expectations. Organic growth in Health and Nutrition was also strong, driven by global demand for probiotics for infant formula in Human Health. Animal Health was impacted by timing of orders, but the underlying interest in microbial solutions for animal farming remains strong, and we continue to improve our route-to-market. Plant Health had another excellent quarter in Latin America, although absolute numbers are still modest. We were also pleased to see the momentum in Natural Colors continue in Q1, driven by demand for coloring foodstuff, where we also launched new products for the FRUITMAX® range during Q1.
“Our EBIT margin before special items in Q1 increased by 0.9 %-point and was driven by improved margins in Health & Nutrition and Natural Colors. The EBIT margin in Food Cultures & Enzymes was positively impacted by a strong development in gross margin, and ended on par with last year, as we continued to invest in our growth and innovation priorities. We continue to expect a positive contribution from further scalability benefits, as we ramp up utilization of the new capacity in our facility in Copenhagen.
“We are encouraged by the solid start to the year, and we maintain our overall guidance for the full year. Our pipeline of products to be launched this year, from all three business areas, looks very promising and will support the growth potential of Chr. Hansen.”
International Flavors & Fragrances Inc. and Frutarom announced that they have entered into a definitive agreement under which IFF will acquire Frutarom in a cash and stock transaction valued at approximately $7.1 billion, including the assumption of Frutarom’s net debt. Under the terms of the agreement, which has been unanimously approved by the Boards of Directors of both companies, Frutarom’s shareholders will receive for each Frutarom share $71.19 in cash and 0.249 of a share of IFF common stock, which, based on the 10-day volume weighted average price (VWAP) for IFF’s common stock for the period ending May 4, 2018, represents a total value of $106.25 per share.
By combining with Frutarom, IFF is accelerating its Vision 2020 strategy to create a global leader in taste, scent and nutrition. The combination unites two industry-leading, innovative companies with complementary customers, capabilities and geographic reach, resulting in more exposure to fast growing end markets and an enhanced platform to deliver sustainable, profitable growth. The combined company’s customers will have access to comprehensive and differentiated integrated solutions with increased focus on naturals and health and wellness.
Frutarom is a flavors, savory solutions and natural ingredients company, with production and development centers on six continents. It markets and sells over 70,000 products to more than 30,000 customers in over 150 countries. Frutarom is primarily focused on natural products, which drive more than 75 % of its sales. Frutarom’s product portfolio consists of innovative and integrated solutions combining taste and health, natural and clean label products. In addition, Frutarom mainly serves local and mid-size customers, and has a compelling presence in fast-growing adjacent and complementary categories such as natural colors, health and beauty ingredients, natural food protection and enzymes. Frutarom has a strong track record of growth, with expected sales of above $1.6 billion in 2018, and their previously announced target of $2.25 billion in sales by 2020.
Christoffer Lorenzen (42) is Executive Vice President (EVP) of Chr. Hansen’s largest business unit, Food Cultures & Enzymes. He joined Chr. Hansen in March 2008 and has held various positions in Sales and Marketing, including Director of Marketing in our Animal Health & Nutrition Business, and Vice President of Central & Eastern Europe. In 2013 he was appointed Senior Vice President of Commercial Development in the Cultures & Enzymes Division and in 2016 he was appointed EVP of the Food Cultures and Enzymes Business Unit.
Prior to joining Chr. Hansen, Mr Lorenzen was employed at H. Lundbeck A/S, a global specialty pharmaceutical company, where he served as Head of Corporate Strategy and M&A as well as Corporate Secretary.
Christoffer Lorenzen holds a Master in Business (Marketing) 2002 from the Copenhagen Business School.
As of 1 February, 2018, the Executive Board consists of: CEO Cees de Jong, CFO Søren Westh Lonning, CSO Thomas Schäfer, and EVP Christoffer Lorenzen. The Executive Board is appointed by the Board of Directors and is, together with their colleagues in the Corporate Leadership Team, responsible for day-to-day management and compliance with the guidelines and directions given by the Board of Directors.
Bioprotection continues to show impressive momentum
Chr. Hansen reports strong organic revenue growth of 10 % in the first three months of 2017/18: Food Cultures & Enzymes 12 %, Health & Nutrition 10 % and Natural Colors 4 %. EBIT before special items decreased by 1 % to EUR 65 million, corresponding to an EBIT margin before special items of 25.4 %. The overall outlook for 2017/18 is unchanged.
CEO Cees de Jong says: “We have had a solid start to the year, with Food Cultures & Enzymes’ organic growth better than expected. Sales of bioprotective solutions continue to show impressive momentum, and this is still without any significant impact from the second-generation FreshQ® products that we launched at the beginning of this financial year. We have also introduced ProKids®, an innovative product concept for a children’s drinking yogurt containing our LGG® probiotic strain. As expected, organic sales growth in Natural Colors was below our long-term ambition.
“Our EBIT margin before special items in Q1 was lower than last year, mainly due to the sale of a property in Argentina in Q1 2016/17, adverse currency impacts and costs related to starting up our new production capacity in Copenhagen. The new capacity is producing ahead of schedule, and we expect to see improving margins from this toward the end of the financial year.
“We are encouraged by the solid start to the year, and we maintain our overall guidance for the full year. We increase our expectations to organic growth for Food Cultures & Enzymes to be even stronger and above the long term 7 – 8 % growth target that we have for this business. At the same time, we lower our expectations to organic growth in Health & Nutrition for the full year to be below our long term guidance for this business due to the challenging market conditions in North America.”
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