Dive Brief:
- Tate & Lyle aims to make 70% of its profit from specialty food ingredients, including sucralose, reports Food Business News.
- The company also plans to expand its specialty ingredients business with newer products, with goals to achieve annual sales of $200 million from these products, according to Food Business News.
- Tate & Lyle also has a goal of 30% of specialty food ingredient sales taking place in Asia Pacific and Latin America in an effort to expand category sales geographically.
Dive Insight:
As part of its restructuring and plan to lower manufacturing costs, Tate & Lyle shuttered a sucralose manufacturing facility in Singapore, leaving one manufacturing facility, located in Alabama. Splenda sucralose volume increased by 7% in the fiscal year.
In North America, Tate & Lyle’s sugar and calorie reduction knowledge, as well as fiber enrichment, will complement products like yogurt and nutrition bars, according to Javed Ahmed, CEO of Tate & Lyle.
A focus on specialty ingredients is also proving successful for Archer Daniels Midland, a Tate & Lyle competitor. The company recently announced the full acquisition of Amazon Flavors, a Brazil-based producer of natural extracts, emulsions and compounds.
ADM has been expanding its WILD flavors and specialty ingredients portfolio, which includes Eatem Foods, a majority stake in Harvest Innovations, and adding Superb to its protein and fiber ingredient portfolio.
