Ohly and Lallemand enter partnership for long-term supply of yeast ingredients

21 Jan 2019 --- Ownership of Ohly’s yeast production site in Hutchinson, Minnesota, US, is to be transferred to Lallemand with a long-term supply agreement in place. Ohly has agreed to divest its Hutchinson Torula Yeast facility and associated Torula whole cell business to Lallemand, a global producer of yeast- and bacteria-based products, with immediate effect.

The divestiture follows a review by Ohly to find a partner which can utilize and sustainably secure the future of the Hutchinson site, according to a company announcement.

“We are proud of the vital role that the Hutchinson site has played in enabling Ohly Americas to expand in the North American yeast market,” says Ralf Fink, Ohly CEO. 

“We believe this transfer of ownership will yield important benefits for our partners, customers and employees by ensuring the continued delivery of whole cell yeast products to its existing customers while providing job security for the Hutchinson site team, whose valuable contributions we are deeply grateful for,” he comments. 

Ohly will continue to operate globally and within the US out of its Boyceville, Wisconsin facility, now being able to focus on Torula yeast extract based specialties and PRODRY culinary powders. As part of the divestiture agreement, Lallemand and Ohly have entered into a long-term supply partnership to supply Ohly with cream raw material from its Hutchinson site for use in all downstream products at Boyceville.

Lars Asferg, President and General Manager of the Lallemand Bio-ingredients business, comments: “Lallemand is already a well-established global supplier of inactive yeast products for savory and health food applications. The acquisition of the Hutchinson business will provide our new and existing customers with a wider choice of products and taste profiles and further develop our technology leadership.”

“We are delighted to have formed a supply partnership with Ohly demonstrating our long-term commitment to the specialty inactive yeast sector,” he adds.

Speaking to FoodIngredientsFirst, Asferg explains: “We see an increase in the overall demand based mainly on the trend towards natural ingredients, like yeast. The specific niche of Torula inactive yeast is a more stable market. Ohly is ensured the supply of Torula cream as the main raw material for the production of their Torula yeast extracts. So all customers will continue to be served in the best possible way, with Torula yeast extracts as before from Ohly and Torula inactive yeast now by Lallemand.”

“Lallemand is a global producer with yeast and bacteria factories we now produce Torula yeast in two factories in North America and one in Europe. Lallemand will invest in introducing Torula yeast globally as well as developing new applications based on this technology,” he concludes.