Tate & Lyle Boosts Oat Ingredients Production on Growing Demand

16 Sep 2016 --- Tate & Lyle PLC yesterday, celebrated the formal opening of its expanded capacity at its oat ingredients manufacturing facility in Kimstad, Sweden. The expansion means that capacity at the facility has increased more than tenfold since it was acquired by Tate & Lyle in 2013 and it is part of a $100 million investment for Speciality Food Ingredients.

Oats are trending in new products. An analysis of new launches tracked by Innova Market Insights (Jan-Aug 2016) featuring oats as an ingredient, found 28% to feature a “high/source of fiber” positioning, 23% to feature a “wholegrain” claim and 18% to be positioned on a “gluten free” platform. The US (18%) was the leading market for applications, ahead of the UK (8%) and Germany (6%).

Speaking with FoodingredientsFirst, Rowan Adams, Executive Vice President of Corporate Affairs for Tate & Lyle says: “Now that the expansion is complete, we are celebrating what marks a very special day for us at Tate and Lyle, the fact that we are able to be here today with the people that have made this two year expansion plan possible, is significant to us.”

“We believe this plant in Kimstad is the perfect logical place to base out oar business globally,” explains Adams (pictured, center above), “Sweden is well known for its high quality oats and this is just inside the “oat-belt” which goes all the way across Scandinavia. We are very lucky to be so close to all this fantastic high quality, locally sourced oat to make products and send them around the world to our customers.”

The full interview with Adams can be viewed here. 

Also speaking at the plant in Kimstad, Henrik Schmidt, Vice President and General Manager, Oat Ingredients, Tate & Lyle: “Kimstad is a small and tranquil village of around 300 households,” he says, “And Sweden’s long tradition of growing oats dates back to almost 1,000 years, being situated here means we have a good connection with the rest of the world, there are ports and major roads nearby,” Schmidt continues, “It’s great for transportation of ingredients in and out of the country.”

“The expansion at our facility in Kimstad has brought significant benefits to the local community.  The number of employees at the facility has more than doubled since 2013 and many local companies have been used to deliver the expansion and provide supplies and services,” he adds. 

A development on this scale involves a huge amount of planning and time: “In the past two half years we have been working a lot with the expansion of this project, so we have had a lot of contractors come in to install new equipment and get everything running smoothly. We produce twenty-four hours a day, seven days a week, so it’s a round the clock production for our customers around the world,” explains Schmidt. 

Oats, the grain with particular nutritional and functional properties, was identified by Tate & Lyle as a strategic addition to its range of raw materials – because unlocking the potential of oats would mean a major developmental opportunity for customers.

To support its commitment to oats, Tate & Lyle acquired Biovelop back in May 2013, a manufacturer of oat beta glucan with an innovative and cutting-edge production technology, and thereby extended its manufacturing presence to Sweden. 

Now known as Tate & Lyle Oat Ingredients, this business applies a unique patented manufacturing process – without addition of chemicals or solvents – to convert locally sourced sustainable Swedish oats into PromOat Beta Glucan and PrOatein Oat Protein for food and supplements, and Avenacare Oat Beta Glucan for personal care.

According to Caroline Sanders, Sales Director, Oat Nutrition for Tate & Lyle, 63% of consumers globally prefer oats over other sources of dietary fiber ingredients. Sanders also noted in a presentation at the plant that two-thirds (66%) of consumers prefer to see oat fiber on an ingredient list, among 15 other common fiber ingredients.
 
Sanders commented by noting: “PromOat Beta Glucan is a source of beta glucan – the soluble dietary fiber in oat bran that provides important functional and health benefits. The use of PromOat can give access to a number of health claims, such as lowering blood cholesterol and lessening the risk of coronary heart disease. Enriching foods and beverages with this natural, heart-healthy oat fiber means we can offer new growth opportunities to our customers.”

She added: “Oat protein is rich in certain essential amino acids that are important for muscle growth and recovery. And what’s more, our PrOatein ingredient tastes good, making it ideal to meet the fast-growing consumer demand for nutritious, protein-enriched foods – including vegan foods.”

According to Schmidt, cardiovascular disease is one of the main reasons people are leaning towards healthier food choices. In an exclusive interview, he told FoodingredientsFirst that around 40% of deaths around the world are associated with heart health. “A the population is aging, it’s very apparent to Tate & Lyle that people want to live longer and healthier,  products which are able to deliver those promises, will hugely benefit the market,” says Schmidt. 

“Health and wellness is one of the major focus areas for Tate & Lyle, so the PromOat Beta Glucan and PrOatein fits well into that portfolio to build a leadership portfolio in health and wellness,” he claims. “We are seeing this as a huge global trend, not only in the traditional markets of Europe and the US but in the emerging markets as well,” he adds. 

Tate & Lyle have a very unique process in which they fraction oats in Sweden. Schmidt explains in further detail: “All our oats come in from the oat fields nearby, and firstly get sent to our dry processing mill. We then create this special brand which is optimized for a wet process.”

“The wet process is completely chemical free at the plant," he says, "We are then able to stress out proteins using heat and by doing so making it insoluble.”

Schmidt also notes: “It is a protein concentrate which is done without using any solvents, and that’s what makes our process at Tate and Lyle quite unique.”

Following completion of the expansion earlier in 2016, the Kimstad facility has also obtained an AA-grade BRC Global Standard for Food Safety certification.

by Elizabeth Kenward in Kimstad, Sweden