Chr. Hansen Pure Colours acquires Secna Pure Substances

Dive Temporary:

  • Chr. Hansen Pure Colours acquired Secna Pure Substances for an undisclosed quantity. Secna is a Spain-based firm that makes pink, purple and caramel colours from anthocyanins in grapes, black carrots, cabbage and beets.
  • That is the primary deal for the corporate since Chr. Hansen bought its colours division to non-public fairness agency EQT for 800 million euros ($940 million) in October.
  • Meals producers are more and more trying to find pure colours as shoppers present a rising desire for clear label merchandise with out artificial elements. Regardless of the challenges meals producers face utilizing plant-based options, the pure meals colour market might attain an estimated $1.77 billion this yr, based on Zion Market Analysis.

Dive Perception:

Shoppers need cleaner product formulations, however they don’t essentially wish to quit the visible enchantment that they’re used to seeing on a few of their favourite meals merchandise. Based on a examine by Emerald Insights, 90% of shoppers make selections about buying a product based mostly on its colour and perceived style.

One of many quickest methods for an elements firm to extend its choices within the rising pure colorings house is to accumulate an organization that already has a confirmed portfolio of choices. Secna can hint its historical past again to 1961, and has a historical past of labor with pure pink and purple pigments.

The transfer additionally aligns with EQT’s plans for the colour firm. On the time of the acqusition, EQT mentioned it wished to develop the colour maker by acquisitions of different pure colours firms, particularly as a result of the market is very fragmented. This acquisition brings extra experience — and extra reds and purples — to reinforce the colour firm’s choices and enterprise. Chr. Hansen Pure Colours CEO Odd Erik Hansen instructed Meals Navigator the deal helps the corporate cement its journey towards being the world’s prime supplier of pure colours, and Secna’s grape extracts complement its current enterprise. 

Pure colours have been problematic for some producers as a result of they don’t all the time create the identical spectrum of radiant shades that customers are accustomed to seeing. Shoppers have mentioned they need extra pure colours, however do not all the time wish to buy the merchandise made with them. The conundrum led Normal Mills to convey synthetic colorings again to its Trix cereal after shoppers complained that the pure colours the producer used had been boring and miserable.

For EQT and its pure colour firm, the fragmentation and challenges within the house seem like extra of an alluring alternative to stake out a stable share of the market. It is made latest strides in creating new and vibrant pure colours. Previous to the acquisition, the colour firm debuted two new plant-based meals colorants for confections: a blue derived from spirulina and a yellow derived from turmeric. It additionally reported making headway in growing a pure fire-engine pink meals coloring utilizing a trademarked candy potato selection in 2019.

However Chr. Hansen Pure Colours faces stiff competitors from others who additionally see alternative in pure colours. Danone Meals North America launched a line of natural, sustainably sourced colours for meals and drinks in 2019 whereas Kalsec has been producing pure colours and elements because it was based in 1958. GNT Group launched a high-intensity blue meals coloring additionally produced from spirulina in 2019. Archer Daniels Midland has patented a pure blue tone derived from tropical fruit. 

The extra pure colour choices there are available on the market, the extra selective meals producers could turn out to be as they attempt to maintain shoppers happy with the visible look of meals. But when Chr. Hansen Pure Colours continues its acquisitive technique, there could finally be fewer suppliers from which to decide on.

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