German company Nordzucker AG, one of the world’s leading sugar companies, announces that it will invest €100 million over the next few years to develop a new business segment: plant proteins.
“Plant-based nutrition will play an increasingly important role in the future”
As part of the expansion, Nordzucker AG will install a plant-based protein processing plant at the company’s site in Groß Munzel, Lower Saxony. Construction will begin in the fall of 2024 and be completed by mid-2026. According to the company, the plant will create around 60 additional jobs.
“Plant-based nutrition will play an increasingly important role in the future. The market is growing rapidly. With plant-based proteins, we see a great opportunity to participate in this future market,” says Lars Gorissen, CEO of Nordzucker AG.
“We are supplementing our portfolio with a product that fits in well with our core competencies and are thus consistently pursuing our growth strategy,” adds Gorissen.
A shift in eating habits
According to Nordzucker AG, the Supervisory Board fully endorses the company’s new business segment to compete in the plant-protein market. The company stated that the decision comes as the global market witnesses a significant shift in eating habits, with an increasing preference for plant-based meat, egg, and milk, creating a lucrative market for companies producing and distributing alternatives to animal products.
“The market has enormous potential”
“The market has enormous potential, Nordzucker has the expertise and close links to growers. The Supervisory Board therefore sees very good growth prospects and is convinced of the company’s investment,” emphasizes Jochen Johannes Juister, Chairman of the Supervisory Board of Nordzucker AG.
Sustainable yellow peas
Nordzucker will focus on processing locally grown yellow peas to offer protein concentrates and texturates for plant-based foods or animal feed.
The company explains that yellow peas meet the requirements for an economically viable and sustainable production: they are an ideal legume for crop rotation that benefits farmers and can be grown in many regions, guaranteeing a stable supply. In addition, due to their stable shelf life, they can be processed all year long. Moreover, Nordzucker’s site is well-positioned to access raw materials from many arable farming regions and sales markets.
“We expect double-digit growth rates per year in the pea protein concentrates and texturates segment. That is why we are now also setting a fast pace in terms of implementation,” adds Alexander Bott, Chief Financial Officer at Nordzucker AG.
