Naturex outlines strategy for F&V market in United States

14 Sep 2017

Naturex has informed its shareholders of what it describes as strategic advances in the F&V market in the United States with organic growth and acquisitions.

Naturex outlines strategy for F&V market in United States

Naturex has informed its shareholders of what it describes as strategic advances in the F&V market in the United States.

Present in the market for natural vegetable-based ingredients through Vegetables Juices Inc., acquired in 2014, Naturex says it is pursuing organic and external growth opportunities to strengthen its leadership position in the United States. These, the company believes, will enable Naturex to take advantage of strong market trends in favour of the natural, clean label products and nutrition as well as energise its business project portfolio in this key product category1.

For the "organic" growth component, Naturex says its aim was to diversify the manufacturing capabilities of Vegetable Juices Inc., until now specialised in a liquid transformation process for vegetable-based specialty products, by investing in a drying technology in order to expand its product portfolio and its scope of applications.

Intent on creating synergies within the Group and, in particular, between the North American and Latin American regions, Naturex has announced that it has concluded an agreement with Chile Botanics' minority shareholders to buy out their 49% stake. The Group will in this way, it says, be able to fully contribute to this structure's development, notably through synergies in terms of fruit and vegetable off-season sourcing and creating application solutions to support the deployment of the F&V strategy.

For the "external" growth component, Naturex says it has further strengthened both its commercial base in the beverage and food industry segment and its industrial footprint in the United States, through two acquisitions.

First, it has acquired selected industrial technologies and operations of Haliburton International Foods2. This acquisition will enable Naturex to integrate a new technology (roasting) as well as natural vegetable-based solutions (purees, sauces, roasted veggies);

Second, Naturex has entered into exclusive negotiations to acquire a fruit-based specialty business and a production facility in the United States. This will enable Naturex to expand its manufacturing capabilities in juices and purees and complete the know-how derived from its long-standing "vegetable" operations by developing a "fruit" platform. This acquisition will provide access in particular to the organic fruit range and address the growing demand for NFC (Not From Concentrate) juices that guarantee lower sugar content and the preservation of nutritional values.