INTERVIEW: Cargill Eyes Pectin as Part of a “Label Friendly” Growth Platform

17 Sep 2015 --- Cargill is looking to “label friendly” ingredients as a key platform for growth, with pectin identified as part of this strategy. This week, Cargill completed the acquisition of FMC’s pectin operations in Milazzo, Sicily (Italy). The acquisition includes a pectin production line, dry peel storage silos, a quality control laboratory, commercial portfolio and a dedicated, experienced workforce. Colleen May, president of Cargill’s texturizing solutions business, believes that this acquisition will move the company into second place in the global pectin market [after CP Kelco]; up from number 3 or 4.

“Pectin is an area that we do intend to grow. This acquisition really allows us to continue to expand our production of pectin ingredients and really optimize our enterprise, by offering the benefit of a third asset in Europe. It allows us to better serve our customers from different plants, offering good reliability with high quality pectin products,” May said in an interview with FoodIngredientsFirst. “From a supply chain excellence and origination stand-point, our strength to the marketplace will be to have the wide range of pectin products that we have today. This plant falls nicely into the portfolio that already exists.”

Cargill’s strategy in the world of texturizers is to continue to strengthen its offerings of “label friendly” ingredients are derived from fruits, seaweeds and major crops like wheat, soy, potatoes etc. come from nature. For May, “label friendly” ingredients are those that can be used in formulations of processed foods that are recognized by the everyday end consumer. “Pectin is one of those ingredients that even my grandmother would know and it would therefore be on the mark amid the ‘label friendly’ trend,” she noted. Certain starches could also be consistent as “label friendly” trend, as well as extracts from seaweed and lecithins, for example, she added. 

Pectin goes into the processed food market; whether in confectionery, dairy or meat & meat substitutes applications, and May believes that the ingredient will continue to have multiple roles in these types of applications.

She noted how pectin historically has been applied into the large categories of jams, jellies, fruit preparations, acidic based dairy & protein based drinks, as well as the confectionery, juice and beverage market. “The growth that we have seen has been across all of these categories. Where we would expect to see this additional capacity taking place, would be consistent where these markets are and where these growth opportunities exist. All of these are areas where we have been a player in to meet growing customer demand,” she explained. She agreed that gelatin replacement has also been an area of growth.

The ingredient can also be incorporated into functional systems that combine various texturizers. “Cargill’s Texturizing Solutions business does have a Functional Systems business which allows for the development of functional solutions in addition to customers that want individual ingredients. So the pectin from this plant will go into the same channels; whether as a direct ingredient or as part of a functional blend,” she explained. 

The Milazzo plant is a highly specialized pectin production facility located in the middle of the citrus orchards near the Tyrrhenian Sea in Sicily. Since 1990, the facility produces high quality HM (high methoxyl) pectin, running primarily on fresh peel. The site comprises fresh peel washing and drying equipment, a pectin production line, dry peel storage silos and a quality control laboratory. It is operated by an experienced team with an outstanding processing and safety record.

“One of things that we have found about this plant is that it has a history of good plant reliability and from meeting the team there, we can see that it comes with a lot of plant expertise. When I think about how this fits into our enterprise to be a consistent supplier to industry, that’s going to be an easy step, as it comes with a strong and highly committed workforce, with a reliability in making good pectin products,” she concluded.

By Robin Wyers