Chr. Hansen reports revenue growth while joining fermentation forces with former Noma restaurant exec

08 Oct 2020 --- Chr. Hansen estimates the end markets for fermented milk were roughly flat in 2019/20, as the impacts of COVID-19 led to reduced output in China, the largest yogurt market in the world, from February through August. Among the remaining markets, Europe is estimated to have edged up, while the other regions declined slightly.

Global production of cheese is estimated to have grown by around 1 percent in 2019/20, broadly driven by all regions. Globally, pricing structures slightly favored cheese production over available alternatives such as milk powders.

The figures and market dynamics come as the global biosciences company publishes its full-year statement of results 2019/20, which shows a 5 percent organic growth, a revenue increase of 2 percent to €1.189 billion (US$1.4 billion).

The former head of fermentation at the sought-after Noma restaurant in Copenhagen, David Zilber, is joining forces with Chr. Hansen.

Fermentation forces
The full-year statement also coincides with the former head of fermentation at the sought-after Noma restaurant in Copenhagen, David Zilber, joining forces with Chr Hansen. 

The new partnership sets out to democratize fermentation and create new solutions for a climate-friendly food system. 

For the past five years, Zilber worked at Noma, which was voted as the best restaurant in the world several times over the last decade. Recently, he decided it was time for a new challenge, and given Chr. Hansen’s obvious fermentation expertise and strong sustainability profile, Zilber says it was a logical next career step. 

“At Noma, I felt like I had accomplished everything I had set out to and more. Also, the pandemic really made me think about the shape of the world from a new perspective. I wanted to take the values and tenets that I believe into the next level and scale them up to affect real change in the food system. And Chr. Hansen is already such a powerhouse within that world,” he explains.

“A powerhouse in the realm of good microbes, a realm where I can put my skills to use, helping to create delicious and healthy solutions. I want to apply some of the ideas I have in mind to problems on a massive scale and try to do as much good as possible in the process. There’s a common mission we’re both striving to accomplish. And because of that, this really feels like a perfect match,” Zilber adds.

Food cultures & enzymes
Organic growth was 5 percent with a revenue increase of 2 percent to €693 million (US$815 million). 

Organic growth was primarily driven by strong growth in enzymes and continued solid growth in core categories such as cheese and meat cultures, and good growth in fermented milk, notes the company. 

In enzymes, growth was driven by the launch of CHY-MAX Supreme and by the continued growth of the NOLA Fit lactase enzyme. Probiotics declined, primarily due to lower volumes in China.

Chr. Hansen says that bioprotective cultures delivered double-digit growth, driven by the existing segments within fermented milk and meat. Bioprotection accounted for around 8 percent of the Food Cultures & Enzymes business in 2019/20.

Health and nutrition
In Health and Nutrition, organic growth was 9 percent, and a negative currency impact of 1 percent was offset by an acquisition impact from HSO Health Care, corresponding to a revenue increase of 9 percent to €277 million, driven by volume/mix. 

The Human Health and Animal Health divisions were also reported to deliver solid growth, while Plant Health declined due to the timing of orders and lower-than-expected sales for soy crops in Latin America.

The solid growth in Human Health consisted of strong growth in dietary supplements, while infant formula declined slightly, primarily due to very strong developments last year.

The overall market for human probiotics is estimated to have grown by 5 to 7 percent, with COVID-19 creating extraordinary demand in the second half of the year, especially in dietary supplements. 

Market growth in the North American and Asian markets is estimated to have been above 10 percent driven by e-commerce platforms, whereas the European market is estimated to be in a small decline due to COVID-19 lockdowns during the year prevented consumers from going to pharmacies, especially in key markets in Southern Europe, notes the company. 

By Gaynor Selby

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