AAK expands portfolio with speciality lecithins through Soya International acquisition
11 Sep 2019 --- Swedish vegetable oils and fats producer AAK has acquired 80 percent of UK-based Soya International, a company focused on the sourcing, processing and distribution of non-GMO semi-speciality and speciality lecithins. Lecithin is a natural emulsifier and a by-product from the processing of vegetable oils. The business will now trade under the new name – AAK Soya International. The acquisition ties into AAK’s bid to expand its ingredient portfolio with a product range that is “critical to many of its customers.
“Lecithin is a key ingredient for many customers within our core segments, especially chocolate and confectionery; fats and bakery; dairy; special nutrition and personal care,” says Johan Westman, President and CEO of AAK.
AAK Soya International specializes in liquid lecithins, powdered lecithins, organic lecithins and speciality lecithin solutions.The acquisition will be consolidated as of today and has no significant impact on AAK’s earnings, notes the company. Acquisition-related costs will be charged to the third quarter 2019. There is a put/call option under which AAK could acquire the remaining 20 percent of the company within the next two to five years.
AAK Soya International supplies a comprehensive range of products, including liquid lecithins, powdered lecithins, organic lecithins and speciality lecithin solutions developed for chocolate, confectionery, bakery, dairy and infant nutrition applications. Lecithin is a natural emulsifier produced from vegetable oils such as soy, sunflower and rapeseed.
Soya International was founded in 1996 and operates out of Manchester, UK. The company has a third-party processing facility in the Netherlands and maintains operations in 40 global markets. Last year, the company reported revenues of approximately SEK 150 million (US$15.5 million).
“Our ambition is to be one of the world’s leading non-GMO lecithin suppliers, with a focus on value-adding speciality products. The establishment of AAK Soya International gives us a major foothold to do this and it’s a perfect strategic fit with AAK’s speciality Oils & Fats portfolio,” says Marco Oomen, Global Business Director Chocolate & Confectionery Fats at AAK.
Soy-based lecithin
There is growing demand for sustainably produced lecithin ingredients in traditional markets such as Europe with high growth in the US and Asia, notes AAK.
AAK underscores a growing demand for sustainablly produced lecithin in the Europe, US and Asian markets.
The market for the lecithin has seen new investment this year, with Cargill’s previous launch of new plant-based lecithins, in a bid to offer bread manufacturers natural emulsifiers that are entirely functional in terms of emulsification, dough handling, increased volumes and improved texture.
In May, the soy-based fatty substance was spotlighted by researchers at the University of Edinburgh for its role in creating chocolate’s distinctive smooth texture. Lecithin reduces friction between particles in chocolate, which further improves its flow. This helps to give molten chocolate its distinctive smooth mouthfeel.
AAK business highlights
This month, AAK released several concepts showcasing the company’s fat and oil solutions, designed to help bakers create indulgent and better-for-you non-dairy plant-based products. AAK presented its expanded portfolio of formulation solutions during the 2019 International Baking Industry Exposition (IBIE 2019), in Las Vegas, Nevada, US, on September 7 to 11.
In July, AAK released an interim report outlining strong second-quarter growth, with its Food Ingredients segment as the main driver, underscoring the strategic launch of its plant-based portfolio. The report closely follows two launches: AkoPlanet, a portfolio of tailor-made solutions for plant-based dairy, ice cream and meat alternatives; and Cobao Pure, an innovative chocolate solution marketed as delivering significantly improved bloom-retarding effects and shelf-life extension.
Early this year, AAK also acquired Dutch company MaasRefinery, which specializes in toll refining of vegetable oils and fats for the food industry. The acquisition increased AAK’s capacity and supported existing production facilities, as well as enabling continued growth.
In March, the company invested in expansion within the Chinese market with a capital injection at its production facility in Zhangjiagang. AAK has put approximately SEK 300 million (US$32 million) toward this investment in a bid to increase capacity and support volume growth – in particular, for its Special Nutrition and Bakery segments in the region.
By Benjamin Ferrer
