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Increasing demand for healthy foods drives the market for natural spice extracts forward

Press Release   •   Apr 03, 2006 14:30 GMT

Chr. Hansen is currently putting the finishing touches on a newly built factory in Cochin, India. With the addition of the new factory, the company is doubling its production capacity of spice extract, derived from paprika and other spices. The timing is most certainly not an accident; health issues have grown in importance the world over, and thus the demand for natural ingredients, including spice extracts, is on the rise.

"It all started about ten years ago when we entered into a joint venture with an Indian partner regarding the establishment of a new production unit, and now we are just about to put the finishing touches on a new, highly technological factory in Cochin," says Bent Zibrandtsen, Vice President of Global Sourcing at Chr. Hansen.

According to Mr. Zibrandtsen, the increasing demand among consumers for healthy and natural food products and ingredients has led to a surge in the market for natural oleoresins. Oleoresins, which contain a very high quality flavor and aroma, are primarily used in processed meats, fish, vegetables, soups, sauces, and dressings, in addition to a variety of dairy products, snacks, and beverages.

Given this current market situation, it is no accident that Chr. Hansen has chosen to make the investment right now.

"Chr. Hansen ranks number two on the list of the world's largest manufacturers of paprika oleoresins, and number three when it comes to extraction of other spice extracts. However, we are now securing our leading position by doubling our global production capacity with the expansion of the new factory," states Mr. Zibrantsen.

Greater flexibility

The new factory in Cochin boasts the latest technology within extraction equipment for spices.

"The new plant enables us to extract on a continuous basis, and thus achieve a utilization coefficient of 100 percent," says Mr. Zibrandtsen. "At the same time, the new system offers us much greater flexibility in terms of raw products, which we are now able to get from the entire world."

The capacity augmentation in India gives Chr. Hansen the opportunity to meet the increasing demand in a quickly expanding global market.

"There is no doubt that the capacity augmentation will further strengthen our position in the market, and also support the plans we have for expanding our presence in the spice segment. Furthermore, the recent investment fits well with our long-term focus on the Asia-Pacific region, an area in which we are able to both manufacture at a lower cost and also meet the quickly increasing demand within food ingredients," concludes Mr. Zibrandtsen.

Chr. Hansen is a global bioscience company that develops natural ingredient solutions for the food, nutritional, pharmaceutical and agricultural industries. The products include cultures, enzymes, probiotics and natural colors, and all solutions are based on strong research and development competencies coupled with significant technology investments. Revenue in the 2013/14 financial year was EUR 756 million. The company holds a leading market position in all its divisions: Cultures & Enzymes, Health & Nutrition and Natural Colors. It has more than 2,500 dedicated employees in over 30 countries and main production facilities in Denmark, France, USA and Germany. Chr. Hansen was founded in 1874 and is listed on NASDAQ OMX Copenhagen.

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