Prinova sizes up APAC expansion with new subsidiary in Australia
13 Aug 2019 --- Global ingredients and premix supplier Prinova has expanded into the Asia-Pacific (APAC) market with the establishment of a subsidiary in Sydney, Australia. The subsidiary will serve customers in Australia and New Zealand, countries that have experienced significant growth in the industry, according to the company. Their fastest growing segments are supplements, dairy and sport nutrition.
The new APAC operation will help the company to supply New Zealand markets with bespoke nutritional premixes from its China operations, with over 2,000 ingredients – in categories ranging from vitamins and amino acids to essential oils and aroma chemicals – supported by warehouses in New Zealand. This is boosted by a 2017 acquisition of Lycored’s facility in China. In addition, the company holds liquid and dry premix manufacturing facilities in the UK and the US.
“The decision to expand into New Zealand was a logical step in our growth strategy,” notes Nic Dam, Group Managing Director at Prinova. “It will further strengthen our service capabilities in the fast-growing APAC market, while also helping us meet the needs of New Zealand specifically, which is very different from other Asian markets. Categories such as sports nutrition and dairy are increasingly important in Australia and New Zealand, so it was essential for us to hold local inventory and offer support and expertise to our growing New Zealand customer base.”
In June, Prinova’s takeover by Japanese chemical trading firm Nagase was described as bringing both geographical and portfolio expansion opportunities for the US-headquartered distributor, with few fears existing about the company and brand being swallowed up. This is according to Michael Petrushka, General Manager Solutions at Prinova, who was “very positive” about the news of the takeover.
While the takeover price for the acquisition was not announced, Petrushka explained that Prinova revenue was around US$800 million in 2018. Some 70 percent of the company’s business is US-based, with 30 percent being international. This share has diversified throughout the years, including through the 2017 acquisition of Lycored’s premix business.
Prinova currently has more than 35 strategically located facilities worldwide. As a single-source partner, Prinova offers services in sourcing and distributing vitamins, amino acids, sweeteners, preservatives, proteins and aroma chemicals, among other ingredient formats.
Prinova Australia and New Zealand Pty Ltd will exhibit on Stand H40 at Food Ingredients Asia in Bangkok, which takes place on September 11-13, 2019.
Edited by Benjamin Ferrer
