Global food and beverage solutions company Tate & Lyle has acquired CP Kelco, a nature-based ingredients company, for $1.8 billion on a cash-free, debt-free basis.
In the announcement, Tate & Lyle stated that this acquisition “expands our offering in the large (US$19 billion) and fast-growing (6% CAGR) specialty food and beverage ingredients addressable market, and unlocks further growth opportunities in core and adjacent markets.”
Tate & Lyle, originating in Britain in 1859 as the sugar refinery Henry Tate & Sons and headquartered in London, was acquired by American Sugar Refining, Inc. in 2010, ending its long association with refined sugar production. Since then, the company has aligned with consumer trends for healthier, tastier, and more sustainable products by offering sugar-reduction solutions for products such as gummies, protein bars, and beverages.
CEO Nick Hampton shared, “With our leading portfolio of specialty 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 the growing consumer demand for healthier, tastier, and more sustainable food and drink.”
An ingredient innovation powerhouse
CP Kelco’s parent company, J.M. Huber Corporation, will hold a 16% interest in the new company and have two seats on its board.
CP Kelco, with over 85 years of experience working with the F&B and pharmaceutical industries, produces a wide range of high-quality, plant-based, and fermentation-derived ingredients to formulate tailored solutions. Its portfolio includes pectin, gellan gum, xanthan gum, and carrageen — ingredients used for sugar reduction or as stabilizers to replace starches. It also offers fermentation-derived cellulose and NUTRAVA Citrus Fiber, a next-generation ingredient from sustainably sourced citrus peels.
“By joining forces with Tate & Lyle, we can create an ingredient innovation powerhouse”
CP Kelco stated that its ingredient solutions for stabilization and texture, combined with Tate & Lyle’s sweetening, mouthfeel, and fortification platforms, will enhance both companies’ capabilities across multiple product categories and unlock new growth opportunities.
Didier Viala, President of CP Kelco, said: “By joining forces with Tate & Lyle, we can create an ingredient innovation powerhouse—one that’s truly committed to meeting consumer and market needs with a unique portfolio of sustainable solutions and our deep technical and applications expertise.”
The sugar reduction trend
According to Tate & Lyle, consumers are increasingly interested in health products with less or zero sugar, which has prompted startups and established companies to innovate with alternatives to sugar and artificial sweeteners.
The US startup Better Juice has developed an enzyme-based sugar-reduction technology that allows manufacturers to reduce sugar content in products by 50% to 70% and lower calories by 40%.
California’s Oobli uses precision fermentation to produce sweet proteins that can replace 70% or more sugar in most food and beverages, offering unlimited opportunities to reduce sugar consumption.
The Dutch plant-based ingredient manufacturer Fooditive Group has launched a new low-calorie sweetener derived from fermented upcycled apples and pears.
The Mexican startup microTERRA has launched Flora, a protein ingredient extracted from Lemna, an aquatic plant known as duckweed, that enhances sweetness perception to reduce sugar in food and beverages without compromising taste and texture.
Additionally, the US company MycoTechnology is scaling the production of a sweetener made from a sweet protein found in honey truffles. This sweetener is said to be 1000 to 2500 times sweeter than sucrose while offering the advantage of being a digestible protein and not a carbohydrate.
Alan Hahn, CEO of MycoTechnology, said when the sweetener was announced, “This breakthrough ushers in a new era of clean-label sweeteners, revolutionizing the way we create foods and beverages without relying on traditional sugar or artificial sweeteners.”
