Essentia acquires Danish-based protein manufacturer Scanflavour
07 Jun 2018 --- Protein ingredients supplier Essentia has acquired Danish-based manufacturer Scanflavour A/S. The acquisition unites two industry-leading protein companies and expands and strengthens Essentia's global presence in protein solutions. Financial details of the deal have not been disclosed.
According to Essentia, the move is a “major strategic step” that would likely “strengthen its position as the leading global manufacturer of animal-based protein ingredients.” Essentia is owned by the Lauridsen Group Incorporated (LGI), has an annual turnover of US$220 million and with a workforce of 500 employees, and is commercially present in over 65 countries.
CEO and President of Essentia, Asger Jacobsen says: “This transaction reinforces our strategic focus on growing our global presence. With the strong complementary fit in regards to the customer base, product range and technologies, we expect to capture several operational efficiencies, necessary to deliver sustainable and profitable growth. We have great respect for Scanflavour and the products they have developed.”
Essentia also believes that acquisition will secure increased access to the fast-growing international protein markets.
Customers will benefit from working with the industry’s leading manufacturer of animal-based protein solutions offering technical support on a global scale, says Essentia.
Before the acquisition, effective June 1, 2018, Palsgaard, the Danish emulsifier supplier, was the majority shareholder of Scanflavour. They will continue to distribute products from Scanflavour to the dairy segment.
“We look forward to working with Palsgaard to develop the dairy market with the newly developed products from Scanflavour,” adds Jacobsen.
Søren S. Møller, Director for Customer Strategy at Essentia, tells FoodIngredientsFirst: “The demand for protein is growing, and we expect this to continue long-term. The growth is fueled by new nutritional needs (e.g. clean label, free-from, meal replacers, protein-rich diets) and driven by a variety of demographic factors, and of course the global population growth in general. When the owners of Scanflavour decided to exit the business, we saw this as an excellent opportunity to increase our global reach.”
“Both the vegetarian and the vegan movements have gained impressive momentum. It seems, however, to be supplemental to an also growing demand for meat-based proteins driven by increased purchasing power amongst consumers in emerging economies around the world. So, even though the vegan surge drives a lot of innovation, the healthy nutritional profile of animal-based proteins will be in demand and appreciated by the great majority. The fact that meat-based proteins contain no known allergens adds to the desirability among consumers opting for products that are free from gluten and other plant-based allergens,” says Møller.
“There are many complementary competencies between us, strengthening our joined organization. We perceive it as two companies with global coverage coming together and believe that we can pursue many shared opportunities on selected markets across the world.”
By re-shaping the two companies into one, including making a number of necessary rationalizations to gain efficiencies, the merger will secure that we keep the competence base or stronghold within the manufacturing of functional protein ingredients in Denmark on a longer term, according to Møller.
When approached by FoodIngredientsFirst, Scanflavour remained tight-lipped on the situation. “We don’t know much else as a company, for us, it’s very early days,” says a spokesperson.
In December, at FiE in Frankfurt, FoodIngredientsFirst spoke with Jacobsen, who discussed the company's recent branding and repositioning. “We have a new focus because we are known for being experts and having our strong points in meat and savory, our animal-based proteins, and we’re refocusing to move into other areas as well,” he says. These areas include meat snacks, general nutrition products, the increased proteins trend and generally helping customers with challenges and opportunities they have.
You can view the full video interview with Jacobsen here.
By Elizabeth Green
