Weekly Roundup: Oterra edges forward in Diana Food’s natural coloring deal, Planteneers extends vegan range

10 Sep 2021 --- This week in industry news, Oterra has revealed that both parties have signed the transactional agreement in line with its intent to acquire Diana Food’s natural food coloring business. Hilton Food Group agreed to acquire the remaining 50 percent of its joint venture (JV) with partner Dalco Food. CHS Inc. is on track to expand its soybean oil refining capacity at its Mankato processing plant in the US, and Nomad Foods announced its plans to reduce greenhouse gas (GHG) emissions significantly.

In brief: Business moves
Following the completion of the transaction, Oterra will fully integrate Diana Food’s natural coloring business. Diana Food is currently owned by Symrise, a global supplier of fragrances, flavors, food, nutrition and cosmetic ingredients. This is the second acquisition in a short period for Oterra, an EQT portfolio company, which acquired Secna Natural Ingredients in June.

CHS has unveiled a major soybean refinery expansion and renovation project at its Minnesota, US, soybean processing plant.The acquisition of Dalco Food – a vegan and vegetarian product manufacturer based in Oss, the Netherlands by Hilton Food Group is subject to clearance from the Dutch competition authority. Since Hilton became a 50 percent shareholder in Dalco in 2019, it has leveraged its manufacturing expertise and capital resource to further expand Dalco’s range into the next generation of vegan and vegetarian products. The acquisition of Dalco aligns with Hilton’s strategy to diversify further and strengthen its protein offering within the vegan and vegetarian markets. 

CHS Inc. has unveiled a significant soybean refinery expansion and renovation project at the CHS Mankato soybean processing plant. The more than US$60 million project is the second phase of CHS investments to capitalize on changing market dynamics and opportunities to grow market access. When upgrades are completed, annual refined soybean oil production at the Mankato facility will increase by more than 35 percent. Project completion is expected in late summer 2023.

In brief: Sustainability 
Nomad Foods, a European frozen food company, is planning  to significantly reduce GHG emissions with approved science-based targets across its operations and supply chain. The targets are consistent with the reductions required to keep global warming to 1.5°C, as per the Paris Climate Agreement. In addition to reducing Scope 1, 2 and 3 emissions in areas such as purchased goods, transportation and distribution by 25 percent over the next four years, Nomad Foods will also provide support to its suppliers, ensuring that the top 75 percent by emissions, develop their science-based targets by 2025. 

In brief: Plant-based highlights
According to a Europe-wide consumer survey by ProVeg International, there is “great potential for plant-based foods” in many categories, including baked goods. In addition to bread and rolls, plant-based alternatives for cakes, tortes and baked goods are in high demand. The ProVeg survey revealed that both vegans and flexitarians want more choices of purely plant-based fine baked goods in bakeries and food retail. In line with this, Planteneers has launched a plant-based range for manufacturers so they can offer a vegan product portfolio covering everything from brioches, fluffy soft rolls and burger buns to muffins, cake and cookies, to toppings, fillings and plant-based cream alternatives.

In brief: Employment changes
Frans van den Hurk relinquished his position as a member of the Executive Board of Zuivelcoöperatie FrieslandCampina UA and the Supervisory Board of Royal FrieslandCampina with immediate effect. The reason for this decision is that Van den Hurk disagrees with the company’s current strategies and that he has not been able to affect any meaningful change to these strategies over the past eight months. Van den Hurk will remain a cooperative member and will now turn his full focus on running his dairy farm in Lieshout.Planteneers is opening new potential for baked goods manufacturers.

Olam International has appointed Niall FitzGerald as the Chair of the Board of Directors for its operating group, Olam Food Ingredients (OFI). OFI was created in early 2020 following the announcement of the re-organization of Olam to unlock and maximize its long-term value. FitzGerald’s executive career has spanned 37 years, including 18 years as an executive board member at Unilever. He served as finance director, foods director and Detergents Director until he was appointed Chair and CEO in 1996, which he held for eight years until 2004. 

In brief: Other highlights
The California Prune Board (CPB) continues working with several Italian and UK-based social media influencers and brand ambassadors over the coming months. It follows the success of its 2020/2021 marketing activities which saw the board join forces with a range of social media stars, nutritionists, chefs and athletes to increase global awareness of the benefits of California Prunes. In Italy, collaborations with a range of high-profile influencers saw the CPB reach an audience of more than 5 million consumers over the last 12 months, with fitness influencer Davide Campagna and food influencers Sonia Peronaci and Teresa Balzano creating workouts and recipes and hosting online social media events to boost interest in California Prunes.

Conservative Animal Welfare Foundation (CAWF) Patron Henry Smith MP has unveiled a Ten-Minute Rule Bill on Ending Cages for Laying Hens. The Hen Caging (Prohibition) Bill will have its first reading on September 22 and, if successful, will see the UK transition away from enriched cage farming systems for egg-laying hens. The Bill is informally known as Beatrice’s Bill after the rescue hen at the center of a new campaign coordinated by Conservative Animal Welfare Foundation (CAWF) and The Humane League, which aims to see the UK end cages for egg-laying hens.

Olon has announced a major expansion of its Italian site located in Settimo Torinese, which is a historical asset of the global manufacturing network of the Group represents a center of excellence for biotechnological manufacturing. The expansion is a key milestone for the site and a cornerstone of the company strategy fostering the development of its biotechnological platform, both in terms of expertise and production capacity. Olon will build and operate the new area with advanced technologies to produce proteins following innovative and highly sustainable processes. Microbial fermentation is one of the most eco-friendly and sustainable technologies. 

The expansion will allow Olon to increase its capacity to accommodate new and existing client's needs; it fits in the strategy of expanding the CDMO services in different market segments. 

By Elizabeth Green