Palsgaard Highlights Quick Win for Manufacturers Seeking Sustainable Ingredients

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09 Jun 2017 --- Just recently, Palsgaard celebrated 100 years since its founder, Einar Schou, invented the modern commercial emulsifier; the Danish-based ingredients manufacturer is increasingly looking beyond its base of food for growth. 

Palsgaard set highly ambitious 5 year growth targets in 2016, aimed at doubling current turnover of DKK1 billion  (€135 million) by 2021. Palsgaard A/S owes its highly successful portfolio of vegetable-based emulsifiers and stabilizers to sister company Nexus A/S, which comprises a range of laboratories.

At the Sustainable Foods Summit in Amsterdam (1-2 June), emulsifier producer Palsgaard, presented valuable insights into how food manufacturers can quickly and easily bring sustainability to their recipes.

A study carried out by research institute Ennova (ennova.com) for emulsifier manufacturer Palsgaard A/S lists sustainable ingredients as one of the top priorities for food manufacturers. In fact, 88% of the survey’s 276 respondents from around the globe stated that buying sustainable raw materials is important to their companies. And interest was even higher, at 91%, among purchasing department representatives.

According to Palsgaard’s CEO, Jakob Thøisen, the trend is good news for the industry – and for society as a whole: “Recipes based on sustainable ingredients help to answer the health, safety and environmental concerns of both consumers and manufacturers,” he says. “And they can open doors to new markets, too.”

Palsgaard’s presence at the Sustainable Foods Summit in Amsterdam aimed to help visiting manufacturers understand how they could achieve a quick win in the market by switching to fully sustainable emulsifiers – including how to determine whether specific emulsifiers meet sustainability criteria, and what’s required to bring them into existing or new recipes. 

Sourcing Challenges
While sustainability is clearly a priority, manufacturers are finding it difficult to source trustworthy, fully sustainable ingredients – both due to technical formulation issues and challenges associated with evaluating supplier sustainability claims. 

Off to a Good Start
Palsgaard senior CSR specialist Lisa Mortensen explains why Palsgaard puts its products forward as a solution for manufacturers seeking to lift recipe sustainability: “Replacing a conventional emulsifier with a sustainable one isn’t technically a big issue. But although emulsifiers are a minor part of the ingredients list, they are important to the producer – and many consumers, too – as they appear clearly on the label.” 

CO2-Neutrality and SG
She cautions, however, that food manufacturers need well-documented sustainable ingredients for their products. In Palsgaard’s view, fully sustainable emulsifiers are those that, as a minimum, fulfil two main criteria: Their palm oil ingredients comply with the Roundtable for Sustainable Palm Oil (RSPO)’s ‘Segregated’ (SG) level – and they are produced in a 100% CO2-neutral factory. 

Setting the Standard
A supplier’s commitment to using only sustainable palm oil shouldn’t stop at the RSPO SG level, however. In Palsgaard’s case, the company dives even deeper into its supply chain, identifying everything sourced from suppliers, such as fatty acids or antioxidants that may involve non-sustainable palm materials. No matter how small a part they play in the product. Where sustainable palm materials cannot be assured, Palsgaard switches to using entirely palm-free products instead.

“We put enormous effort into risk analysis and responsible sourcing programs to ensure that our suppliers act responsibly in the supply chain. And when it‘s possible to source key raw materials from a sustainably certified supply chain, audited by a third party, it gives even more confidence in producing a truly sustainable product,” Mrs. Mortensen explains.

Both palm oil and CO2 emissions are widely known and discussed environmental issues, lending more fuel to the advantages of kick-starting the sustainable ingredients list with emulsifiers.

Making the Change
Palsgaard itself is currently the world’s only source of fully sustainable, vegetable-based emulsifiers that are produced by a CO2-neutral factory and which solely use RSPO SG certified palm materials. As the inventor of the modern commercial emulsifier, and with years of heavy investment in sustainability, Palsgaard has achieved CO2-neutrality, for example, at its main production location in Denmark far ahead of any other food ingredients manufacturers. And it stands alone in eliminating all sources of non-sustainable palm oil, however minor.

And the company is well positioned to help manufacturers who want to protect and grow their brands with sustainable ingredients. Additionally, in the broader perspective of sustainability, the company’s emulsifier/stabilizer systems are non-GMO, and they meet halal and kosher requirements too. 

Palsgaard A/S

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Emulsifiers, stabilizers & know-how put to work

Palsgaard A/S, the inventor of the modern food emulsifier, was established in 1919 – and we still have our headquarters where it all began: in a 600-year old manor house complete with moat and surrounding park, forests and farmland. Proud traditions of quality and craftsmanship underlie today’s broad product range, which includes high-performing emulsifiers and stabilizers for margarine, bakery, dairy, ice cream, soy, confectionery and fine foods as well as functional agents for polymer applications. Emphasis is placed on effectiveness, innovation and strict food safety procedures.

Palsgaard has served the global food processing industry for decades and our continued ability to serve our customers is ensured by the company’s status as a self-owning foundation with significant financial assets, which allows the company to take a long-term view with focus on experience, credibility and thorough know-how of customers’ processes and challenges.

CSR is part of our DNA

Sustainability and the use of pure raw materials have been close to Palsgaard’s heart from the very beginning. This is reflected in our production facilities around the world, including state-of-the-art factories in Denmark, Malaysia, Netherlands, Mexico and China, and in our commitment to global initiatives such as RSPO-certified sustainable palm oil. By partnering with Palsgaard you’ll be able to meet your customers’ demands for a sustainable business model on palm oil sourcing. Our certified emulsifier factories are able to deliver up to RSPO SCCS SG certified emulsifiers for the food production area you may prefer.

Already in 1908, long before "Corporate Social Responsibility" was conceptualized; Palsgaard's founder Einar Viggo Schou emphasized the importance of acting responsibly and caringly towards the company's employees and families - and the importance of extending this responsibility to society. His principles have meant that Palsgaard has worked with CSR as a core activity for more than a century. We are active in over 100 countries, bringing with us a strong sense of responsibility to act in ways that benefit local and global environments and which are in line with our founding principles.

We've set an overall target of becoming CO2-neutral by 2020. That’s an ambitious target for a company with energy-intensive production processes, but it's just another of the ways in which we care for our world.

Share our know-how

An important cornerstone in Palsgaard’s business is our well-equipped Application Centers in Singapore, China, USA, Mexico, and Denmark. The centers cover all the major food application areas, offering a uniquely personal service where specific needs and preferences - and the realities of local markets – are in focus.

Typically, a Palsgaard application center comprises a fully equipped industrial facility where realistic industrial pilot tests can be carried out. This unique setup facilitates proper up-scaling and vastly increases the likelihood of success in the marketplace.

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