Ajinomoto flavors to be distributed in North America by Canadian company5 Jun 2020
Food ingredient producer and distributor Caldic Canada will be the exclusive distributor of Ajinomoto’s savory ingredients across the Canadian market. Although financial details were not disclosed, this distribution agreement will take effect beginning on August 1, 2020.
Although Ajinomoto produces a wide range of flavor products, this new distribution agreement will focus on the Japanese flavor company’s monosodium glutamate, flavor enhancers, transglutaminase and Asian sauces.
It is noteworthy that one of the primary flavor ingredients that Caldic Canada will be distributing is monosodium glutamate or MSG. Since the middle of the last century, this additive has been burdened by a reputation that it causes headaches, dizziness and general weakness. In consequence, consumers have spent decades avoiding it. Yet, this flavor enhancer has never really disappeared altogether from commercially-produced products.
In fact, the use of this oft-shunned ingredient is far from slowing. Ajinomoto, who is responsible for about 70% of the U.S. MSG market, says its MSG sales are increasing at about 5% annually, reported Food Dive.
This seasoning is also an integral part of Asian food, a segment that is experiencing a growing interest in North America. As consumers steadily expand their culinary horizons through social media and travel, ethnic flavors have begun to rise to the top of the list of flavors North Americans want to consume. According to last year’s Frito-Lay U.S. Snack Index survey, flavors hailing from mainland Asia are ranked second in terms of popularity, right behind Latin America. Increasing demand for Asian flavors will play well for Caldic Canada who will also be distributing an array of Ajinomoto’s liquid sauces.
However, flavor enhancers and MSG are not just used in Asian food. Ranch dressing, chicken sandwiches at fast-food chains and canned soup all benefit from the enhanced flavor profile imparted by MSG. And it seems that the demand for flavorful food is only continuing to grow.
The global food and beverage flavoring market is forecast to hit $18.1 billion by 2023, up from $12.4 billion in 2016, according to Allied Market Research. In foodservice, the figures are even brighter. About 40% of the market for flavor enhancement is in the B2B segment that is dominated by takeout, foodservice and restaurants. This totals up to $18.3 billion with Ajinomoto estimating a growth rate between 2011 and 2025 at 3.2%. If this prediction proves true, Caldic Canada will shortly find itself benefitting from this distribution deal.
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