Rice and ancient grain miller, blender and packager Western Foods (WF) is to acquire the US operations of rice flour manufacturer American Sunny Foods. The deal will include business associated with operating a Japanese-style processing facility in California, US, and related technology and manufacturing expertise. This move will allow WF, which focuses on gluten- and allergy-free ingredients, to sell specialty rice flours in Japan, Europe and North America.

WF will gain the processing capabilities and technical expertise required by Wagashi confectionery and rice cracker manufacturers in Japan. The technology is crucial for extremely high-quality rice flours with respect to their whiteness, low-micro standards and consistent viscosities, the company says. This technology will be combined with rice varieties grown in California, which are similar in quality to popular Japanese varieties, to increase WF’s product offerings.

The full product range includes medium grain and glutinous (sweet) rice flours from California and long grain and medium grain rice flours from the southern (Delta) states. It also offers organic versions of all its flours. The Western Milling-owned company is based in Woodland, California. Last autumn, it opened a second flour mill and dedicated gluten-free facility in Pine Bluff, Arkansas, which is the region of the US known for growing long grain rice.

The free-from market is growing, spurred by an increase in global allergy rates and lobbying efforts. According to Innova Market Insights, there is a 6 percent CAGR in food and beverage launches with a free-from claim in recent years (Global, 2013-2017). These products accounted for 24 percent of food and beverage launches reported in 2017.

Germany-based natural ingredient company Kröner-Stärke is also developing gluten-free offerings that have a comparable taste to traditional wheat offerings. Although it successfully created a wheat-based, gluten-free starch, this type of product can be risky as some customers are uninterested in using any wheat, even if it is gluten-free.

As most gluten-free products are composed of highly-refined starches, they often have a low nutritional content. Oats, which contain high levels of vitamins, minerals, fiber and healthy fatty acids, could also represent a significant opportunity in the free-from market. In the EU, oats were officially accepted as a gluten-free grain in 2009. Gluten-free oats are also endorsed by the Association of European Celiac Societies (AOECS Gluten Free Standard). According to the regulations, the statement “gluten-free” may only be made when neither the oat raw material nor the final product contains more than 20mg/kg of gluten.