Layn acquires Wagott, China’s largest exporter of green tea extracts

03 Dec 2020 --- Layn Natural Ingredient (Layn) is expanding its botanical extracts portfolio through a majority acquisition of Chengdu Wagott Bio-tech (Wagott), China’s largest exporter of green tea extract and a producer of tea and resveratrol extracts.

The purpose of this equity acquisition is to integrate and leverage resources, combining intellectual property and advantages in management, products, processes and relationships “to deliver increasing compelling value to customers,” Layn reveals.

Currently, Layn provides ingredients and formulation guidance to some of the world’s biggest brands in food, beverage, flavor, nutraceutical, personal care and animal nutrition.

“Wagott is the biggest global exporter of green tea in the world and an innovation and production powerhouse in broader tea ingredients. As the market for tea ingredients continues to grow, we expect Wagott to continue its focus on tea, but also in innovating and expanding its tea portfolio,” Collette Kakuk, vice president for global marketing at Layn, tells FoodIngredientsFirst. 

“Alongside Wagott, Layn will be able to directly manufacture 300 additional botanicals,” she adds. 

In an agreement finalized on October 13, 2020, Layn acquired 51 percent ownership of Wagott.Spotlight on tea extracts and botanicals
According to Kakuk, consumer interest in natural, clean label, functional botanicals has “never been higher.”

“Tea extracts offer tremendous beneficial properties – both with and without natural caffeine,” she asserts.   

Notably, consumers are getting “more savvy,” flags Kakuk. “They are vetting ingredient sourcing, sustainability, and efficacy – and this acquisition presents a great opportunity for the combined companies to leverage their R&D and innovation advantages in a broader, combined portfolio that provides extraordinary increasing value to customers.”

Moreover, consumers are demanding more natural ingredients over synthetics. “They want ingredients that are natural and that they can pronounce,” she adds. 

“Nowadays, what was old is new again. And with renewed interest in botanicals that have been used for thousands of years for medicinal and functional properties, modern research and technology allow us to advance our understanding and science behind botanicals,” Kakuk explains. 

2020 has brought several dimensions of health and wellness into the forefront – certainly immune support is on many minds as the COVID-19 pandemic continues. 

“Consumers are looking for botanicals that have powerful, science-based and functional properties,” Kakuk underscores.  

“As well as this, there is a heightened interest in ingredients which support mood, anxiety, stress, sleep, beauty-from-within and gut health to name a few.” 

According to Kakuk, Gen Z and Millennial consumers are giving rise to tea, in particular, bottled and sparkling beverages and also different kinds of tea, specifically black and green varieties for health benefits.

“Ready-to-drink companies are adding in essential vitamins and nutrients in addition to more specialized natural ingredients such as adaptogens and CBD for relaxation, mood and stress,” she continues. Immune support is at the forefront of consumers’ minds as well as heightened interest in overall well-being, gut health and beauty-from-within.

“It’s exciting to combine our well-developed processes and technology to expand opportunities and bring increased value to the marketplace, particularly in bringing tea extracts, including natural polyphenols and L-theanine to market,” says Feng Gu, general manager of Wagott. 

“We anticipate significant product innovation and the introduction of new lines such as white tea and pu’erh tea extracts and organic certified tea extracts.” 

A strategic step 
The arrangement with Wagott is in line with Layn’s long-term strategic planning. It marks a significant milestone in its sustained commitment to innovation and leadership in quality botanical extract production and delivery.

According to published data in 2019, Wagott’s green tea extract export value ranks first, and it is a leading company in the field of green tea and resveratrol (from giant knotweed) extract in China.

“Layn’s state-of-the-art facility is optimized for botanical extraction and the production of sweeteners, fruit-based antioxidants and herb-based functional ingredients,” adds Frank Xie, EVP Layn. 

“We strive to advance our botanical science and R&D efforts, and unifying this with Wagott’s capacity and its complementary ingredient portfolio puts us in a position of global leadership in innovation, production, yield and cost – all focused on providing ultimate value to our customers.”

By Elizabeth Green