Staying on the label: “I am a big supporter of clean and lean,” says SternWywiol chief

09 May 2019 --- The SternWywiol Group is eyeing new opportunities within the plant-based field, with further innovation likely to follow on from the highly innovative concepts presented at IFFA in Frankfurt this week (May 4-9). According to CEO Torsten Wywiol, regional growth is taking place in the Asian and African regions, while he is confident on some small bolt-on acquisitions to further strengthen their position in these areas. Stressing that while the group, which has a turnover of more than €500 million tends to concentrate on niche markets, it is not exposed to significant related risks due to its diversity. “We love niche markets, but luckily there is not just one area where are growing,” he tells FoodIngredientsFirst.

The plant-based meat alternatives space is the one to watch, he notes. “There is a big step to creating innovative products that taste similar to meat. Then it can even serve as an alternative for flexitarians, where someone changes their behavior by changing away from meat once a week,” he says.

For Wywiol, growth in plant-based solutions is not limited to Western Europe and is prevalent around the globe. Regional expansion into healthier products is also being assessed. “We opened a new factory in Malaysia in 2018 for vitamin and mineral products, including infant nutrition. So we are investing heavily in that and Asia is especially growing strongly for us and therefore we opened our newest production site over there,” he says.

At IFFA this week, the company’s Hydrosol business, a fast-growing international supplier of food stabilizers, expanded its already wide range of vegan, plant-based products.German-headquartered family-business Stern-Wywiol Gruppe positions itself is one of the world’s most successful international suppliers of food & feed ingredients. With a broad portfolio, it was unsurprising that the company was present at two major trade shows this week: IFFA (Frankfurt) and Vitafoods Europe (Geneva). 

For Wywiol, who was speaking to FoodIngredientsFirst on the Geneva show floor yesterday, healthy opportunities exist across the board. “This does not just mean on SternVitamin and SternLife products, but on the whole range of plant-based products,” he notes. “For example, when it comes to our Hydrosol business, it is not just in dairy and fine food, but especially in terms of meat alternative solutions. Everything that is linked to your health and thinking about the future is the big growth market for us,” he adds. 

Healthy growth is being targeted across the board. “We are focusing on 12 different companies, operating in different industries. Some of them are even focusing on more than one industry. But the healthy range is a strong leg, where more than one company is working on,” he notes. 

Wywiol points to the stabilizing field as a big growing market for the company, but their SternZyme business is performing well too. “Our enzyme range is about having good solutions with enzymes, where chemicals are out and good solutions are in. This is even a topic where we can sometimes have good solutions with enzymes,” he notes. 

In terms of regional expansion, the biggest growth is being enjoyed in Africa and Asia. “In general, Africa is a very big market for us, especially when it comes to the fortification. This is a topic where we see the points of what is good for people, their health and even for vitamin A, folic acid, iron and others,” says Wywiol.

Torsten Wywiol, CEO of the SternWywiol GroupIn Asia, solutions that address evolving eating habits can be highly beneficial. “Especially in the whole Asian region, consumersare increasingly adopting a western style approach to healthy habits and they are open to healthier products. This is where we think we can help our customers produce healthier and better sustainable and more secure products,” he says.

Beyond regional expansion, growth can come through acquisition too, with Wywiol more confident following a quiet period. But while he admits that the company is looking for some opportunities, their preference is for small bolt-on acquisitions over acquiring big organizations. 

“In the last years we were not successful in acquiring, but we are open,” he notes. The unsuccessful attempts were typically price related, with private equity companies looking to sell at “far from realistic price levels.” 

“As a family-owned business, we have to earn money one day. Sometimes the organizations are too big to integrate or too far away or not strong enough,” he notes. 

He is confident in moving ahead, however. “We are looking at some interesting fields now. I hope we can expect something in the coming months,” he adds.

Despite the rise of clean label across the board, Wywiol is positive on the outlook for the ingredients sector, stressing that a “lean label” approach, rather than a stricter “clean label” one may be the way forward. “You need E numbers, especially certain ones. So does that mean lean label or clean label? We are creating solutions for both a clean or a lean label,” he says.

He furthermore stresses that the sector is in a good space if it can evolve to meet shifting consumer demands. “People have to eat and animals need to be fed. We are in the food ingredient world and are happy and see big growth potential,” says Wywiol. “We have to big quick, fast, innovative and very creative and the right partner. If we don’t give added value to our customers then we are out. Consumers are more demanding. You need to be more transparent and without transparency and high quality you cannot survive,” he says.

SternLife keto concepts at Vitafoods Europe 2019.At IFFA this week, the company’s Hydrosol business, a fast-growing international supplier of food stabilizers, expanded its already wide range of vegan, plant-based products. One of its new products is HydroTOP VEGAN Patty PP. What's special about this stabilizing system is that it is free of soy, wheat and other allergens. It is based on fava bean and pea protein. Together with the sunflower-based texturate, it enables users to make vegan burger patties that are similar to meat products in taste, texture and mouthfeel. Another plus point is that since it features just one E-number, this stabilizing system aligns with the declaration-friendly product trend. 

In a video interview at the show, Florian Bark at the company noted the trend towards vegetarian burgers and how ingredient solutions providers can address it. 

Furthermore, at this year’s Vitafoods, which ends today in Geneva, SternWywiol’s SternLife business is presenting a new generation of protein bars. They have a very soft, light texture similar to that of confectionery bars. Thanks to their taste and their tender, creamy consistency, the new soft bars are claimed to have more in common with chocolate bars rather than functional bars despite being enriched with protein and dietary fiber. With fashionable flavors like Iced Coffee, Caramel Fudge, Strawberry Ice Cream or Salted Caramel, brand suppliers can extend their range of protein bars to include attractive alternatives with high unique selling value and satisfy the consumer’s demand for healthy enjoyment in terms of “permissible indulgence.” The new bars, coming with a crisp chocolate coating, contain high-quality milk protein; they are low sugar and free from soy and gluten.

By Robin Wyers