Danisco highlights cultures business for Asian growth

By Lindsey Partos

- Last updated on GMT

Ingredients giant Danisco highlights the cultures business as a key
vehicle for growth in the burgeoning Asian market.

The Danish firm that carries the Howaru range of probiotics in its cultures portfolio, this week opened a new 1200sqm innovation centre in Singapore, dedicated to "capturing emerging markets in the region"​, says Danisco.

Opportunities for global ingredients players have opened up in China on the back of a soaring Chinese food industry that has witnessed a four fold increase in sales in a decade.

Valued at under 100 billion yuan in 1991, sales reached well over 400 billion yuan just ten years later.

Driving the market is the increased spending power, and changing eating habits, of China's 1.3 billion people. They are transforming the country's food sector, both domestically and in foreign trade.

Foreign brands of foods and beverages - soft drinks, yoghurt, sausage, crisps, breakfast cereals - comprise about 5 per cent of products in Chinese supermarkets, but many of those products are also manufactured with local ingredients.

As a result, ingredients firms have found they need to break into the local market in order to effectively compete. In 2003 Danisco increased its hydrocolloid investment in the region, linking up with a Chinese xanthan gum firm.

And this week the firm confirmed its new centre will "house and consolidate the activities of regional cultures creation centre, flavour creation centre and application support for South East Asia."

Products designed there will specifically aim for the Asian taste and palate.

"One of our objectives is to enhance Danisco Cultures ability to design culture solutions adapted to the specificity of Asian consumers,"​ highlights Dr. Leif Kjaergaard, senior vice president, Innovation and Technology.

Last year the €320 million acquisition of chemical firm Rhodia leapfrogged Danisco from world four into the number two cultures position, brushing a close second to Chr Hansen.

Danisco last year announced plans to ramp up production of frozen pelletised cultures clearing a €7 million investment to expand facilities in Niebull, Germany.

The Danish firm said it will push up production to target three key markets - cheese, fresh dairy and probiotics.

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