IFT First 2024 live: Lallemand and Exter’s JV poised to boost flavor offerings in North America

17 Jul 2024 --- Privately owned company Exter and yeast and enzymes producer Lallemand have inked a strategic North American joint venture (JV) that promises “a flavorful future” as the companies join forces to introduce innovative reaction flavors to redefine consumer expectations and raise the standards for sensory delight.

Trading as Exter North America Inc., this JV will “unite the expertise and resources of Exter and Lallemand to create a dynamic synergy that will bring value to the North American food industry.”

Speaking to Food Ingredients First at the ongoing IFT First 2024 in Chicago, US, John Bruggink, general director of Exter, and Lars Asferg, president of Lallemand Bio-Ingredients, tell us more. 

“Exter is a manufacturer of flavors, typically protein-based flavors which are also called reaction flavors. Lallemand is a manufacturer of specialty ingredients, and we are joining forces to conquer the North American market with our products and establish that position in the US marketplace,” says Bruggink. 

Location is crucial 
Asferg explains that Lallemand is focused on developing innovative solutions using its leading yeast technology platform. “Our well-established presence in North America will enable our joint venture to craft solutions specifically tailored for the targeted markets, thereby meeting both industry and consumer expectations.”

He adds that “understanding your customers’ needs is paramount to the move” because taste preferences in Europe differ from those in North America.”

“Having local applications helps us to better understand our customers and enables us to work with a toolbox on the technology.”

Asferg outlines the JV’s main objective as “making North America a real meaningful player in the flavor market, where we are helping our customers innovate and renew their products.”

“We want to grow substantially, to be seen as a leading department for these areas.”

Bruggink affirms that “both companies already have a presence in the US.” However, by combining forces, he expects the businesses to be stronger in the market, meaning they will both be in a position to bring appealing ingredients and innovative products to the marketplace.

Exeter and Lallemand are both global companies, but Europe and North America are significant markets for the business, while Asia is also an important market.

“The North American market is newer to us [Exter]. We’ve been established here but only for a few years.”

“The JV venture aligns seamlessly with Exter’s long-term strategy, emphasizing regionalization and the expansion of our geographical footprint. We are poised to create unparalleled tastes, bringing us closer to customers and realizing our vision for a flavorful future.”

Complementary styles
Commenting on how Exter’s time-honored traditional style fits with Lallemand’s strategy, Bruggink believes that this is a “complementary” style for Lallemand.

The Lallemand Bio-Ingredients and Exter stand at IFT First 2024, in Chicago, US.“Lallemand is strong in bio and bio ingredients, and Exter is strong in applications, so applying those products at the customer level and combining our ingredients with Lallemand’s ingredients is going to be a perfect solution for the customer.”

Meanwhile, Lallemand’s Asferg says that the next step for the yeast industry in terms of savory development is “redefining it.”

He points to “new ingredients and areas in yeast” that are currently under development. “Of course, yeast is also a source of protein that can enhance a product’s formulation, which makes our ingredients more eligible.”

Honing in on protein
Plant-based alternatives have been an essential sector for Lallemand. With the new JV offering a boost to flavors in both savory and meat applications, plant-based products are likely to continue to be an area of development. 

Bruggink explains that Exter’s range of flavors is based on proteins. “These flavors are created by combining certain proteins with amino acids with other ingredients. When cooked, you get a certain type of flavor, mostly savory flavors, and they can elevate any type of culinary application.”

Although Exter’s flavors are based on proteins, the dosages are “very low,” Bruggink explains.

Acquisition moves 
At the start of this year, Lallemand Bio-Ingredients completed the acquisition of Evolva to bolster its health and flavor businesses. Lallemand acquired the Swiss biotechnology firm through its Swiss affiliate Danstar Ferment for CHF20 million (∼US$23.5 million).

The acquisition of Evolva was reported to enable Lallemand to produce complex molecules from yeast for the first time while improving economies of scale and market accessibility for the company and its proprietary precision fermentation technology. 

Asferg explained why the Canadian company targeted Evolva, what future investments to expect, and the key focuses for the business unit in a previous interview. 

By Elizabeth Green, with live reporting and images from Missy Green in Chicago, US