Loders Croklaan and Kerry Group Enter Joint Venture for Nutrition Lipid
06 Apr 2015 --- IOI Loders Croklaan and Kerry Group have reached an agreement to form a joint venture company to manufacture and promote the nutrition lipid Betapol business. The parties expect to conclude negotiations over the coming weeks subject to competition approval. The equal share alliance is centered around Betapol, a specialty lipid for infant nutrition.
The new partnership will stimulate co-developments to extend the portfolio for infant nutrition, and expand into other key nutrition markets.
Sarah Sy, Commercial Director Nutrition at Kerry Asia Pacific told FoodIngredientsFirst that Betapol will be integrated into Kerry’s extensive Nutrition portfolio where synergies with current products and projects have already been identified. “Our dedicated global nutrition team of scientists and experts are also looking into other application areas in our world class application centers in Beloit, Naas, Mexico and Singapore. Primary production is at its state of the art enzymatic facility in Pasir Gudang, Malaysia with additional blending capability in Wormerveer, The Netherlands,” she explained.
In terms of strategy, Sy said that the company will continue the strong growth in Asia Pacific, with potentially untapped markets in LATAM and EMEA specifically in the super premium infant formula segment.
Both partners will bring specific advantages and expertise to the joint venture:
• IOI Loders Croklaan - the creator of Betapol, and first to introduce OPO-type fats to the market - holds over 25 years of experience in the quality supply of specialty lipids to the infant nutrition market. IOI Loders Croklaan will continue to manage the supply chain and further build upon its commitment to create a traceable and sustainable supply chain. IOI Loders Croklaan will also manage product manufacture.
• Kerry has over 30 years’ experience as a trusted partner to the nutrition market, with dedicated commercial and nutritional science teams delivering a broad portfolio of scientifically based nutritional products for all consumer life stages. Kerry’s €100 million investment in a new Global Technology & Innovation Centre in Ireland will provide a focal point for advancing scientific nutrition research, innovative processing technologies and market leading technology platforms. Within the partnership Kerry will co-develop and market Betapol fulfilling consumer needs and expanding into new markets.
The newly formed joint venture will be responsible for business development and innovation. Betapol will be integrated into Kerry’s global nutritional ingredients portfolio, backed by unparalleled global applications, marketing and sales support.
Julian Veitch, CEO of IOI Loders Croklaan: “There are many complementary areas and synergies between our two companies. We are delighted to partner with Kerry on this joint venture initiative. Kerry is renowned for its extensive nutritional and global market capabilities, putting its customers at the centre, and offering world-class infant nutrition innovation and solutions that are founded in science.”
Michael O’Neill, President of Kerry’s Nutrition Division: “IOI Loders Croklaan has a vertically integrated supply chain and is the world’s most experienced and trusted producer of OPO-type fats. Working together in this strategic partnership will deliver the same high quality ingredients with additional future product enhancement and global support.”
