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DSM completes First Choice Ingredients purchase, Tesco opens checkout-free supermarket in London

FoodIngredientsFirst  2021-10-25
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This week in industry news, DSM completed its acquisition of First Choice Ingredients for an enterprise value of US$453 million. Tate & Lyle opened a technical application center in Dubai, while BASF and Cargill expanded their partnership in the animal nutrition space. Tesco opened its first checkout-free supermarket in London, UK, and Morrisons was awarded the Stone Fruit Retailer for 2020/21. Also, the British government is on track to reach its net-zero target by 2050.

 

In brief: Business moves
Royal DSM
 has completed its acquisition of First Choice Ingredients, a supplier of dairy-based savory flavorings. First Choice Ingredients has built a strong position in the US taste market as a critical partner with food producers, flavor houses and foodservice suppliers. The company ferments and blends various natural dairy products to develop the clean label, dairy and dairy-based savory flavorings for taste and functional solutions across multiple applications. This acquisition by DSM will be highly synergetic for both companies. DSM can further accelerate the growth of First Choice Ingredients by offering their products outside the US to DSM’s broad global customer base. It will be integrating their solutions into its portfolio of taste, texture and health in sustainable solutions for F&B customers. 

Morrisons has been awarded the Stone Fruit Retailer of the Year for 2020/21.Tate & Lyle has opened its new technical application center in Dubai. At the US$2 million facility, the company’s food scientists will work with F&B customers to address the growing demand for solutions that lower sugar, fat and calories, and add fiber to consumer products. Opening the center reflects the company’s commitment to developing the food and beverage industry in the Middle East, Turkey and Africa. As a result, Tate & Lyle will support manufacturers across the region to deliver successful food formulation, from ingredients and recipes to the application and sensory experience.

BASF and Cargill are expanding their partnership in the animal nutrition business, adding research and development capabilities and new markets to the partners’ existing feed enzymes distribution agreements. Together, they will develop, produce, market and sell customer-centric enzyme products and solutions. The goal is to bring farmers’ feed innovations that reduce nutrient waste, improve feed efficiency and promote animal growth and well-being.

In brief: Plant-based highlights 
Vegan Trademark holder Crackd The No-Egg Egg is continuing to drive awareness with a significant ATL investment. The product, which launched about a year ago, is 100% plant-based, made from pea protein and rich in vitamin B12, while containing no allergens or fat. Earlier this year, The Vegan Society published research that showed 98% of non-vegans would be open to trying the plant-based alternative. While 51% said they would use it to make scrambled eggs, 47% would try an omelet and 42% would use it for pancakes. The outcome was even more excellent among vegans, with 100% of survey respondents keen to give it a go.

In brief: Supermarket highlights
UK-based supermarket Tesco has opened its first checkout-free supermarket in High Holborn in London. The retailer partnered with tech start-up Trigo to launch the frictionless checkout service. The new store called GetGo works through the Tesco app, wher customers scan a QR code on their phone to enter their shop. There is no need to browse or queue to pay for any products as cameras and scales monitor the goods taken. Automatic payment is charged through the app once customers leave the shop, with a virtual receipt being received within a few minutes of leaving. The cameras track body movements in the shop. Customers purchasing age-restricted goods, such as alcohol, will be directed to a different area wher store staff will check ID.Demand for Vegan Trademark holder Crackd The No-Egg Egg is soaring, says The Vegan Society.

Morrisons has been awarded the Stone Fruit Retailer of the Year for the 2020/21 season, thanks to the businesses’ strong category performance and support for South African produce this year. South African growers’ association HortGro presents the award each season to UK retailers that have delivered exceptional results and made efforts to promote stone fruit from South Africa. Morrisons saw a significant increase in peach, nectarine and plum sales this year compared to 2020, achieving particularly substantial growth in plums. The retailer supported the South African campaign by giving plums priority selling space in-store, implementing branded shrouds across 450 stores in February.

In brief: Appointments
Darling Ingredients
 has promoted Sandy Dudley to executive vice president for renewables and US specialty operations. In this new role, Dudley will continue to oversee the company’s renewable fuel strategy and spearhead Darling’s US specialty operations, including the production of nutrients for wet pet food, organic fertilizers, bakery feeds and refining operations. 

In brief: Other highlights
The UK government is on track to reduce greenhouse gas emissions and reach its net-zero target by 2050. The strategy comes before the UK hosts the COP26 conference in Glasgow. Media coverage of the process focused on initiatives on heat pumps, energy production and ceasing the sales of petrol and diesel cars by 2030. There was an extra £625 million (US$863 million) for tree planting. In its sector analysis, it included agriculture under the heading of “natural resources.” From a current baseline of 20%, it anticipates moving to between 39 and 51% reduction in this sector. The pathway cited increased afforestation and peat restoration, forestry rotation for sequestration, biofuels and reduction in waste emissions. 

American consumers have been freezing food at record rates these past two years, according to the OnePoll survey by Hillshire Farm brand, with a majority of people across the country (55%) saying they bought a second or even third freezer to house all the extra frozen food. The survey examining the freezer habits, attitudes and favorites of 2,000 people revealed that some of the most common foods in freezers are vegetables, soups and sauces. And close to a third reported feeling “stressed,” “uneasy,” or “surprised” when they open their freezer and see all the new food. One-half say they have to waste their frozen food because they forget about it.

The Food Consortium Collaborative Training Partnership (CTP) will educate researchers about tackling current societal, environmental and economic issues in the UK F&B industry with innovation through the delivery of 28 PhD studentships. Food manufacturing giants with notable R&D sites in the country, including Mondelēz, Nestlé, PepsiCo and the Samworth Brothers, will be involved in the delivery of The Food Consortium CTP. The CTP will also include collaboration with the UK’s largest independent science and technology provider and food industry trainer, Campden BRI, and the Hadyn Green Institute, the business school at Nottingham University, promoting impact-driven entrepreneurship.

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