CP Kelco and Tate & Lyle Partner for Food & Beverage Sector

By Kitty Wheeler
Tate & Lyle has been a world leader in ingredient solutions for healthier food and beverages for over 160 years
CP Kelco and Tate & Lyle are set to merge, creating a global powerhouse in food and beverage product development and customer service solutions

In a strategic move that promises to reshape the specialty ingredients landscape, CP Kelco, a global leader in nature-based ingredient solutions, is poised to join forces with Tate & Lyle, a renowned food and beverage solutions provider. 

The specialty ingredients landscape in the food and beverage industry is a dynamic and competitive arena dominated by key players in the food industry like Ingredion, Cargill, ADM and DuPont

These giants face challenges worldwide, from rising consumer demand for clean-labels, plant-based products and functional ingredients, to sustainability and regulatory compliance, supply chain disruptions and volatile raw material costs.

Innovation remains crucial, and consolidation through mergers and acquisitions is required to enhance companies' product portfolios and global reach through investing heavily in R&D, to develop novel ingredients that meet health, texture and flavour demands. 

As a result, CP Kelco and Tate & Lyle are merging to leverage their strengths, combining CP Kelco expertise in nature-based ingredients with Tate & Lyle's established presence in the food and beverage industry. 

What are CP Kelco and Tate & Lyle aiming to achieve by merging together?

The merger aims to create a leading global player in specialty food and beverage solutions, combining both companies' specialities to capture a larger market share, and potentially reshape market dynamics by setting new standards for innovation and sustainability in the sector.

Aims include:
  • Market dominance
  • Innovation acceleration
  • Expanded product portfolio
  • Sustainability focus
  • Cost synergies
  • Global reach enhancement
  • R&D advancement
  • Strategic acquisitions
  • Customer-centric approach
  • Health and wellness trend capitalisation
  • Regulatory adaptability

The partnership seeks to drive product innovation and meet evolving consumer demands by offering a more comprehensive product range by becoming a one-stop solution provider for food and beverage manufacturers across the world.

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The partnership is also expected to generate significant cost savings through operational efficiencies, shared resources and economies of scale.

What cutting-edge technologies will CP Kelco and Tate & Lyle use to meet consumer demand?

Unlike traditional mergers, this partnership maintains separate identities while sharing R&D resources, and will utilise advanced fermentation and extraction methods to develop novel, sustainable ingredients. 

Focusing on innovative plant-based texturising technologies, particularly in alternative proteins and their approach emphasises agility and market responsiveness, will allow the partnership to rapidly address evolving consumer demands for clean-label and plant-based products. 

Additionally, the partnership deal will see J.M. Huber Corporation (Huber), the nature-based ingredient solutions company, sell CP Kelco to create a formidable entity in the global specialty food and beverage solutions sector and Huber will maintain a significant stake in the new venture, retaining approximately 16% ownership in the combined holding company, Tate & Lyle PLC.

Nick Hampton, Chief Executive of Tate & Lyle

Nick Hampton, Chief Executive of Tate & Lyle says: “Together, we will have a compelling customer proposition. With our leading portfolio of speciality ingredients and a world-class team of food science experts, we will be uniquely placed to provide our customers with the solutions they need to meet growing consumer demand for healthier, tastier and more sustainable food and drink.”

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