Solae Announces Global Prices Increases, Launches New Products in Europe

While alternative dairy proteins have experienced double digit price increases over the last two years, Solae was able to absorb general inflationary pressures through productivity efforts, but with current outlooks, price increases are unavoidable.

19 Nov 2010 --- Effective immediately, Solae will increase prices of its high quality soy ingredients by 7-9 percent across the globe. Solae stated that like all food companies, it has been affected by general inflationary pressure in the current economic environment, and the following are significant global market dynamics affecting food manufacturers:

* Global Producer Price Index is expected to increase by about 4.7 percent in 2010.
* Producer Price Index is expected to continue to increase at an average rate of 2.7 percent globally during 2011, with some regions as high as 8-10 percent.
* With continued advances in biotechnology increasing crop production, availability of non-GM crops is shrinking and therefore non-GM premiums will continue to increase.
* Protein demand and input costs have been on steady rise fueled by economic recovery and a strong growth of the middle class in China, India and Latin America, where families are including more meat and dairy in their diets.
* While alternative dairy proteins have experienced double digit price increases over the last two years, Solae was able to absorb general inflationary pressures through productivity efforts, but with current outlooks, price increases are unavoidable.

“Solae is not immune to these economic pressures, and this new pricing is critical to our business and our ability to serve our customers,” said Torkel Rhenman, chief executive officer – Solae. “Solae continues to be in a great position to help customers through these challenges by providing innovative, economical solutions. We are committed to providing high quality, predictable soy ingredients while continuing to invest for future innovation to meet our customers’ needs.”

The news came as Solae introduced two new protein nuggets to the European market at HiE.

A new protein multigrain nugget – SUPRO Nugget 173 – uses patent-pending technology to combine soy protein and the grains of rice, oat and barley. This is the first soy nugget on the market that combines protein and grains in a single nugget, making it ideal for use in a variety of products including bars, snacks, baked goods, cereal, and more.

A new high protein soy nugget –SUPRO Nugget 570 – is 90 percent protein on a dry weight basis, making it the highest containing soy protein nugget currently on the market. This patent-pending technology provides formulation flexibility when targeting higher protein levels and works well in a variety of food and snack applications,.

"These new nuggets are evidence of our continued commitment to innovation,” said Michele Fite, vice president of global marketing and strategy and specialty business at Solae. "The inherent value of protein and grains resonates with consumers, and these offerings enable manufacturers to deliver great taste, nutrition and crunch in a variety of applications.”

SUPRO Nugget 173 is comprised of 60 percent soy protein and 40 percent grains (rice, oat and barley). SUPRO Nugget 173 provides ease of use and formulation flexibility with delivery of protein and grains in a single nugget. In addition, the natural shape of this nugget provides a unique eating experience either by itself or in combination with other nuggets

When Solae conducted consumer testing through its sensory science program, consumers indicated an overall liking of 7.3 on a 9 point scale for a multigrain protein bar product concept using SUPRO Nugget 173. Additionally, 60 percent of consumers responded that they would be “definitely” or “very much” interested in purchasing this product concept.

SUPRO Nugget 570 provides formulation flexibility for food manufacturers to achieve high levels of protein while optimizing taste, texture and nutrition. Whether the goal is to increase the amount of protein, or reduce the package size while maintaining protein, SUPRO Nugget 570 provides the flexibility needed to meet the needs of consumers while providing nutritional, functional and economical benefits to the manufacturer.

Protein ranks as one of the most popular nutrition bar attributes. Increasingly busy consumer lifestyles are fueling the growth of the bar category as consumers seek on- the-go convenience foods with a healthy boost. Recent periods have seen a rise in high-protein, low carbohydrate or balanced Glycemic Index formulations, which can help support sustained energy, satiety and maintenance of normal blood sugar levels.

"Solae developed these two new soy protein nuggets based on growing consumer health and wellness needs," said Joern Gravgaard, senior research investigator at Solae Europe. "We are able to leverage our extensive isolated soy protein expertise, extrusion capabilities and application knowledge to create offerings that maximize the delivery of high quality protein, enable cleaner ingredient labels for manufacturers, and provide a positive eating experience for consumers."