Corbion to exit frozen dough market to focus on food preservation

Dutch food ingredient firm Corbion has unveiled plans to exit the frozen dough market.

The company plans to focus on natural food preservation and lactic acid.

Corbion made the announcement at its capital markets day for analysts and investors in Amsterdam.

Corbion CEO Olivier Rigaud said: “Our business and reporting structure will have three business units from now on. Sustainable food solutions: supported by an industry that is rapidly moving towards clean label / natural food solutions we will leverage our strengths in preservation.

“Sustainable food solutions will consist of three segments: preservation, functional systems and single ingredients.

“In the preservation segment, we intend to expand our (natural) preservation solutions from the meat into other markets. In the functional systems segment, we will focus on natural / clean label solutions in bakery and other markets.

“Both segments could be supported by bolt-on mergers and acquisitions (M&A). Emulsifiers will have a declining strategic fit going forward and will be managed for value. Other non-core activities, such as co-packing blending and the frozen dough will be exited.”

The company also aims to capitalise on its leadership in lactic acid business. It plans to build a new lactic acid plant at the existing Corbion site in Rayong Province in Thailand.

Rigaud said: “In our incubator, where we develop early stage initiatives, we plan to bring omega-3 docosahexaenoic acid (DHA) to profitability in 2022 while we stay committed to investing in initiatives with a longer time horizon.”

In November, Nestlé partnered with Corbion to develop microalgae-based ingredients for plant-based products.

Nestlé agreed to combine its expertise in the development of plant-based products with Corbion’s microalgae and fermentation capabilities. They aim to produce microalgae-based ingredients that are rich in protein and micronutrients.