The global food preservative market is set to grow at a compound annual growth rate (CAGR) of 2.5% in the next five years, according to a new report from Markets and Markets.
EXCLUSIVE INTERVIEW: DISPATCHES FROM BRAU BEVIALE 2011
Ulf Brøchner Sørensen, global product manager, brewing and distilling enzymes at Danisco, told BeverageDaily.com at Brau Beviale that there was trend globally towards less expensive, more sustainable production.
Danisco says its new brewing enzyme range are ideally sorted for use in arid climates such as Africa where sorghum is grown, as an alternative to ‘expensive malt’.
Dupont, which earlier in the year warned that its May $6.49bn acquisition of Danisco would dent its yearly profits, has defied expectations in second quarter results published today.
US chemical group DuPont has successfully completed its tender offer for Danisco, as 92.2 percent of outstanding shares in the Danish food ingredients firm were tendered by Friday’s deadline, DuPont said on Monday.
The European Commission today approved DuPont’s €4.5bn offer for Danish probiotics, enzymes and ingredients giant Danisco but the deal remains in doubt as to date only 6% of Danisco shareholders have accepted the offer.
DuPont has extended its $6.3bn takeover bid for Danish biotech firm Danisco for the second time, after holders of only six percent of Danisco’s shares have accepted the offer.
Danisco’s fine Q3 results may make some investors less willing to sell, believing the company can bring profit alone or that DuPont may be persuaded to raise its offer, say commentators.
DuPont would look to move its food ingredients R&D to Denmark following its acquisition of Danisco, and adopt the latter’s Sales and Application development organisation to get ingredients to market, offer documents reveal.
DuPont’s €4.9bn acquisition of Danish probiotics and sweeteners specialist Danisco this week is vindication of the increasing economic viability of functional foods, according to analysts.
More deals in the mould of Danisco-DuPont could be feasible, as analysts predict other ingredient firms with small bio-business, such as CSM, will generate acquisition interest.
Royal DSM says it stands to make €129m if it accepts DuPont’s bid and sells its 4.95 per cent stake in Danish supplier Danisco, but has not stated it would accept the offer.
DuPont expects to become a ‘premier specialty food ingredients provider’ as a result of acquiring Danisco, and expects it to be particularly complementary to its Solae soy protein business.
Danisco is to be snapped up by DuPont for $6.3bn, in a deal Dupont says could create a global leader in industrial biotech – and help drive science-based solutions to the world’s food and fuel challenges.
Danisco has completed the next phase of its cultures capacity expansion with the opening of modernised and enlarged facilities in Epernon, France, allowing it to reduce response times for DVI cultures.
Cost reduction and streamlining efforts at Danisco have pushed the firm ahead of budget, prompting a re-assessment of targets while the firm also places a renewed focus on sustainability.
Danisco achieved 6 per cent in revenue for its full year 2009/10 and strong profit growth; all divisions with the exception of sweeteners contributed to its margin expansion.
Danisco has reported the first quarter of year-on-year growth for its sweeteners division since xylitol problems struck two years, but staff reductions are on the cards to get a strong foothold on profitability.
Stevia could soon be adopted by ice cream manufacturers, claims a partnership of ingredient developers which believes it has overcome the technical challenges of producing frozen desserts using the natural sweetener.
Danisco has put together a selection of enzymes to increase yield for juice manufacturers and help apple processors in particular deal with a volatile marketplace.
Danisco latest results bear testament to the responses of consumers to the economic crisis around the world – with very different shifts taking place in the US and Europe.
Firmenich and Danisco have found a way to lower the fat content in vanilla ice cream by 40 per cent without distorting the flavour profile, a development that fits with the trend for healthier, luxury products.
Cost efficiency remains key to the development of yoghurt products, but must not be the sole consideration for dairy manufacturers, according to one supplier of cultures and processing aids.
Danisco has developed a new series of ingredients for processed meat products that it claims can help improve yield and cut costs in production whilst maintaining quality.
The food and beverage enzyme market looks set to continue growing, says Danisco chief, as food firms turn to processing aid to solve issues of cost, safety and quality, and new health and nutrition benefits are uncovered.
Danisco has reported a slowdown in food ingredient volume sales in Q3 as the economic downturn kicks in; sweeteners and enablers are worst hit, but growth rates in cultures ‘satisfactory’.
Danisco reducing its production of xylitol in China and mothballing its xylose facility, as its sweeteners division is implicated as one of the causes of lower earnings expectations.
Danisco says it is will be shifting its UK-based brewing enzymes operations to Denmark as part of a global shake up of the group’s beverage business designed to strengthen innovation in the segment.
Dansico says it has strengthened its hand within the market for polyphenol-rich ingredients through a new cooperation to globally supply a range of grape extracts.
Margin pressure in its sweeteners and Genencor business divisions has caused Danisco to lower its bottom-line outlook and take a long hard look at its production set-up for xylitol and other products.
Danisco's director of regulatory affairs explains what the newly adopted legislation on food additives and enzymes means for industry, and the question marks that remain.
Danisco has charged an internal task force with identifying new applications for xylitol, as the sweetener continues to blight its otherwise positive financial results – but has reduced production in the meantime.
Rumour, according to the Romans, is a feathered beast with a myriad eyes and tongues. Last week she went bristling through the Danish business pages, spreading the news that Danisco could be bought by a private equity firm.
Danisco has obtained European approval for its planned acquisition
of ABF Ingredients' Abitec emulsifier business, which is expected
to strengthen its position in some key European markets.
Danisco has announced that it will sell its sugar division to
Nordzucker for DKK5600m, around €751m, bringing to an end months of
speculation as to whether it would agree to a sale or opt to spin
off sugar into a separate business.
French sugar and food solutions company Tereos has confirmed it is
hoping to acquire Danisco's sugar business, and that it is bidding
against Germany's Nordzucker.
Long term R&D strategies look to be paying off as Danisco is
recognised as being one of the strongest patentees compared with
other companies in the food sector.
Danisco has invested $9m in its Wisconsin cultures plant to expand
capacity and meet the growing demand for low-cost frozen Direct Vat
Inoculants (DVI) cheese cultures.
Danish ingredients group Danisco today inaugurated a new
application and research facility in China, which the firm hopes
will help it further expand operations in an "important growth
area".
