Focus on cost-effective, premium ingredients

AT Food Ingredients Asia (FIA) 2014 in Jakarta, Indonesia, Corbion Purac showcased its wide range of products.  Headquartered in Amsterdam, the Netherlands, Corbion Purac is a multinational bio-based food ingredients and biochemical company with presence in over 20 countries. It specialises in lactic acid and lactic acid derivatives, and uses fermentation to develop new ingredients for enhancing and stabilising foods.

At FIA, the company put emphasis on their new line of natural fermentation based ingredients.  Although it was launched in the United Sates three to four years ago and in Europe two years ago, the line is relatively new to the Asian market, having been launched only last year.  The ingredients are derived naturally from a fermentation of cane sugar and they stabilise food during its shelf life naturally.

Edwin Bontenbal, director of Market Development, Food, Corbion Purac

"It is good for food spoilage and food safety as it also controls pH, Aw, texture, and micro-organisms (bacteria, yeast/molds)," explains Edwin Bontenbal, the director of Business Development, Food who met us at the show. "The shelf-life is very good and the safety is guaranteed."  

Added benefits for customers include the ability to label their products as cultured/fermented sugar. Customers can claim that their products are natural as these natural ingredients are chemical-free. According to Mr Bontenbal, these have been well received in Asia-Pacific. "We have some successes now in South Korea, New Zealand, and the Philippines. Indonesia is also a very important market for us. We still think that Southeast-Asia will be a very big growth engine for Asia. Of course if you look at Australia and New Zealand, it's quite mature. Same for Japan and South Korea."

Introducing new products and adapting to the market's changing landscape is a natural part of their success. "For example, we have a new encapsulated malic acid for confectionery and we see more and more developments in cleaner labels as well as reducing the number of e-numbers on the ingredient label. So the ingredients can be labelled as a cultured sugar. The other thing that we see is if you look at the market, the whole of Asia-Pacific is more and more strict and regulatory and safety is a factor that is more and more dominant in the food industry. We have to help the food industry adapt to the new reality of the regulations."

With much opportunity in the region, Corbion Purac is forging into 2015 with big hopes to infiltrate into Asia-Pacific's food industry in an even bigger way. Mr Bontenbal says, "What you will see is that we will be more aggressive going after the customers to tell everybody about our ingredients and our performance."

In another opportunity, FPMJ spoke further to Mr Bontenbal about the Asian market.

FPMJ: How would you characterise your markets in Asia right now?
Asia always has been a cost conscious market, and the competitiveness is even increasing in Asia. While disposable income is increasing for a large part of the population. The food industry will cater to both the cost-conscious consumer as well as to the consumer willing to pay for premium food products.

The regulatory environment is tightening with all the associated reformulating of food products to assure that they are within the new regulations. This is causing major issues in shelf life, safety and consistency of the food. The cost is often increasing as well to assure regulatory compliance, enforcing the law is needed to create an even playing field for all.

FPMJ: What have you introduced for this market?
We have introduced cost effective alternatives in the market as well as premium products (clean label) to extend shelf life and improve food safety. We are formulating products specifically catering to local legislation in order to assure compliance. We have been optimising acidification and buffer systems to enhance the taste and consumer preference.

FPMJ: What is your estimated investment in R&D?
We are re-allocating our resources to innovate for Asia Pacific; our investment in both incremental and breakthrough innovations is estimated to be 4%-8% of sales.

FPMJ: What major trends will impact the industry in 2015?
The major trends that will impact the industry this year are the following:
Tightening of regulatory environment
Reducing sodium and sugar will slowly gain more ground
More introductions into premium products for wealthy and health-conscious consumers

FPMJ: What is your outlook for 2015 in ASEAN?
Quite competitive, but disposable income is still growing and that will allow for both volume and value growth for the next several years. The companies that are most responsive will benefit the most, with more and more ingredient suppliers allocating more resources and innovation initiatives towards the Asian market. We continue to focus on cost effective ingredients to extend shelf life and improve food safety.