June in review: Tate & Lyle to acquire CP Kelco, ultra-processed food confusion and vanilla sourcing dispute
01 Jul 2024 --- Key business highlights in June included dsm-firmenich unveiling plans to sell its Yeast Extracts business to Lesaffre, a global business specializing in fermentation and microorganisms. Tate & Lyle agreed to acquire the entire issued share capital of CP Kelco, a leading provider of pectin, specialty gums and other nature-based ingredients, from J.M. Huber for a total implied consideration of US$1.8 billion.
We highlighted research from Innova Market Insights, which found that US consumers are confused by ultra-processed foods.
We also spoke with various stakeholders in the vanilla industry about sourcing issues. The Association of Vanilla Exporters of Uganda claimed that brands must source vanilla from multiple countries, notably Uganda, to avoid market disruptions, while stakeholders in Madagascar disagreed.
Here, we recap the most significant stories of the month to ensure you stay informed about key F&B industry developments and insights.
Researchers “silence sugars” in genetically engineered potato to cut browning and extend shelf life
Scientists in the US formulated a genetically engineered potato variety to minimize off-color browning and caramelization. This yields healthier, higher-quality potato chips with extended cold storage times with the potential to address shelf life issues. We looked into the breakthrough for the US snacks market and producers of French fries.
Cocoa traceability soars but poverty and child labor continue to plague industry, new report highlights
The Retailer Cocoa Collaboration revealed that the traceability of cocoa supplies has significantly improved in the last year as companies brace for the incoming EU Deforestation Regulation. However, the findings also highlighted a lack of progress in addressing poverty and child labor within the sector. We looked into the issue.
dsm-firmenich’s sale of yeast extract unit to strengthen Lesaffre’s savory business
Nutrition and health player dsm-firmenich announced it is on track to sell its Yeast Extracts business to Lesaffre, a global business specializing in fermentation and microorganisms. The transaction, The plant breeding sector has several success stories, including the transformation of rapeseed into canola through modification.expected to close by the end of this year, is subject to customary regulatory approvals. We spoke to both companies about the sale and how it will boost savory ingredients.
Scientist shortage: Plant breeder deficit threatens global food security, study reveals
A study warned that a shortage of trained plant breeders may have “dire” consequences for global food security. The investigation flagged that the current state of plant breeding in academic, government and industry sectors is hindered by a lack of funding for education centers, challenges around public-private partnerships and a lack of understanding of the sector itself.
EU pork producers “caught in the crossfire” as China launches anti-dumping investigation into meat exports
Chinese authorities launched an anti-dumping probe into the EU’s pork exports, which experts feared could impact European food producers. The move follows the conclusion of the European Commission’s investigation into imports of Chinese electric vehicles. China’s Ministry of Commerce said it would focus its investigation on EU pork imports in 2023, with the probe possibly lasting up to a year. Earlier in the month, China unveiled a new food security law to crack down on food waste and boost grain processing.
IFT First 2024: Innova Market Insights finds US consumers confused by ultra-processed foods
New research from Innova Market Insights suggested that US consumers hugely underestimate their consumption of ultra-processed foods and lack understanding of what constitutes ultra-processed foods, which could impact their ability to eliminate unhealthy meals from diets. The global leader in market intelligence for the F&B industry found only 19% of consumers acknowledged they consume ultra-processed foods daily.
UK General Election manifestos on food and beverages: What do they promise?
With the General Election fast approaching and UK political parties recently releasing their manifestos, Food Ingredients First examined the key pledges of the main three parties and explored what they could mean for the F&B industry. Key topics include food security, rising prices, farmer protests and strengthening supply chains.
Madagascar dismisses Uganda’s vanilla challenge as experts support supply chain diversification
The Madagascar Vanilla Company (MVC) hit back at The Association of Vanilla Exporters of Uganda’s (Vanex) claims that brands must source vanilla from multiple countries, notably Uganda, to avoid market disruptions. We dived into the topic and spoke to both organizations and industry experts. MVC argued that Ugandan vanilla beans cannot satisfy consumer demand because they are inferior in quality to Madagascar’s. The Sustainable Vanilla Initiative, however, agrees with Vanex that a second major production origin would help alleviate price volatility. The Sustainable Vanilla Initiative supports Vanex’s claims that vanilla supply must diversify beyond Madagascar.
Tate & Lyle to acquire CP Kelco for US$1.8bn to form global specialty F&B giant
Tate & Lyle agreed to acquire the entire issued share capital of CP Kelco, a leading provider of pectin, specialty gums and other nature-based ingredients, from J.M. Huber, for a total implied consideration of US$1.8 billion. The move would create a leading global specialty F&B solutions business and is expected to “drive stronger revenue growth and significant adjusted EBITDA margin improvement over the next few years.” Later in the month, we examined the pending acquisition further with commentary from industry investment experts.
Livestock levy: Denmark agrees “historic” carbon tax on agriculture
The Danish government announced plans to implement Europe’s first carbon tax on agriculture after months of negotiations with farming organizations. Denmark, a major pork and dairy exporter, will charge farmers for livestock emissions. Greenpeace told us that although the agreement is “far from perfect,” it is a “world first” CO2 emissions tax and its significance should be recognized.
By Gaynor Selby