Ingredion to increase plant-based protein investment to US$185 million
This will significantly expand the company’s portfolio to provide more innovative, sustainable solutions, says CEO
06 Aug 2019 --- Ingredient solutions provider Ingredion is increasing its investment in plant-based proteins to US$185 million by 2020, with a new manufacturing facility via its Verdient Foods venture on the way. The move builds on a previously stated investment amount of US$140 million and will expand both manufacturing and production capabilities. Expected to be fully functional by late 2020, the new facility will produce specialty pulse-based protein ingredients and is a response to the growing consumer demand for plant-based protein.
“We’ve advanced our specialties strategy to capitalize on the trends shaping the food industry,” says Jim Zallie, Ingredion’s President and CEO. “Our latest investment will significantly expand our product portfolio to provide more innovative solutions to our customers, which will enable future growth. Ingredion and Verdient also share a common vision that sustainable and trusted sourcing will play an important role in the future of consumer-preferred plant-based proteins.”
The company informs FoodIngredientsFirst that no further details of the investment will be disclosed at this time.
Ingredion entered into a joint venture with Verdient Foods last December. At the time, Zallie said the company had identified plant-based proteins as a high-growth, high-value market opportunity that is on-trend with consumers’ desire to find sustainable and good tasting alternatives to animal-based proteins.
Verdient Foods and the new facility are based in Vanscoy, Saskatchewan, Canada, and the company is jointly owned and operated by Oscar-winning director James Cameron, Suzy Amis Cameron and a local Saskatchewan family office – PIC Investment Group. Currently, the facility produces pulse-based protein concentrates and flours from peas for animal and consumer food applications, with food processing capabilities expected to increase significantly.
Plant-based alternatives are increasingly popular, making it a lucrative market for expansion.As a further element of its plant-based funding, Ingredion purchased a processing facility in South Sioux City, Nebraska, US, last February and is making significant capital investments to transform the site to produce pulse-based protein isolates. The company expects the facility to be functional by the end of this year, and it will be used to produce ingredients that enhance the company’s current Vitessence pulse protein isolate line to include higher protein isolates primarily for the nutrition, health and wellness categories.
“Our relationship with Ingredion will power a significant expansion of plant-based proteins to consumers around the world. By working together, we have an amazing opportunity to be leaders in the next wave of global food production, which will have a lasting impact on future generations,” says Cameron.
“By combining our expertise in product formulation with Verdient’s Canadian-sourced pulses, we are positioned to be a reliable source in supporting manufacturers as they create great-tasting and affordable plant-based proteins for food and beverages,” adds Igor Playner, Vice President of Plant-Based Proteins at Ingredion.
The company recently announced that it would also use the investments to enable expansion in the Asia-Pacific (APAC) region. By enabling turnkey solutions for consumers, the company can take advantage of the early-onset of the plant-based protein trend in this part of the world.
The interest in plant based nutrition shows no signs of slowing down, as health, sustainability and ethics make plant derived products and ingredients increasingly popular. Innova Market Insights reports 64 percent average annual growth of food and beverages with a plant-based claim (Global, CAGR 2013-2017). These products include the use of words such as “plant-based,” and “100 percent plant.”
Additionally, Innova Market Insights shows that when fastest growing plant proteins as average annual growth (percent) of new food & beverage launches with protein ingredients (CAGR, 2015-2017) are examined, the standouts include: rice protein (65 percent), soy protein concentrate (60 percent), pea protein (48 percent), soy protein (19 percent) and potato protein (16 percent).
By Katherine Durrell
