Oterra on track to acquire Diana Food’s coloring business
18 Jun 2021 --- Oterra, formerly known as Chr. Hansen Natural Colors, plans to continue its “strong” growth acceleration by acquiring Diana Food’s natural food coloring business. Financial details of the deal have not yet been disclosed.
Speaking to FoodIngredientsFirst, Odd Erik Hansen, CEO of Oterra, says research shows that consumer demand for, and interest in, natural ingredients is at “an all-time high.”
“As a consequence, food manufacturers want a consistent supply of safe, reliable natural ingredients and natural colors. We are in a unique position to help manufacturers answer that demand,” he notes.
“We are on a strong growth journey with strong backing, and as such are always looking for the right opportunities to strengthen our Natural colors platform. The combination of these factors makes it the perfect time to combine forces with Diana.”
Diana Food is owned by Symrise, a German-based global supplier of fragrances, flavors, food, nutrition and cosmetic ingredients.
Hansen expects the acquisition to be approved and closed toward the end of the year.
Diana has a strong portfolio of red beet and carrot-based products and an attractive organic product range, he continues. “These products will be great additions to the Oterra portfolio and will also facilitate backward integration to our existing offerings. This is a key part of our strategy to continue to extend our leadership in natural colors.”
This deal, once finalized, will further strengthen Oterra’s access to high-quality raw materials and complement its agronomy competencies.Delivering on consumer demands
According to Hansen, it has become increasingly popular to focus on “new trends” or “key themes.” Still, for Oterra, its strength has been providing food manufacturers with reliable, consistent, high-quality natural colors that help them deliver on the consumer demands, he outlines.
“Since our first color launch in 1876, we’ve utilized the power of nature’s true colors and championed that natural is best. In addition, we see lots of activity in and around organic natural colors, in meeting the color needs of plant-based products like meat and dairy alternatives, as well as new natural beverages.”
“Diana Food has built an impressive business under Symrise, and we look forward to continuing Diana Food’s strong customer and supplier relationships. This deal will further strengthen Oterra’s access to high-quality raw materials and complement our agronomy competencies,” adds Hansen.
For Cees de Jong, chairman of Oterra, this latest development is a move in the right direction.
“The carve-out of Diana Food’s coloring business from Symrise is strategically important to Oterra, and after less than three months of new ownership, we are already strongly progressing on our ambitious growth journey,” he explains.
Diana Food’s labor unions, based in France and the UK, presented the offer this week in compliance with French legal requirements.
An active sector
This will be the second acquisition for Oterra, following the recent announcement to acquire SECNA Natural Ingredients Group.
Last October, Oterra (operating as Chr. Hansen Natural Colors) inaugurated an R&D center to pioneer new natural color solutions and ramped up pigment, formulation and application capabilities in Montpellier, France.
In February, the company appointed Barentz as its strategic partner to distribute its natural color portfolio in South Africa and Zimbabwe.
Oterra has reported organic growth by 9 percent annually during the past five years up to 2018/19. The company generated sales of €224 million (US$260 million) in 2018/19.
By Elizabeth Green
