Ingredion to acquire full ownership of plant-based protein maker Verdient Foods

CANADA – Ingredion Inc. has entered into an agreement with its joint venture partners to acquire 100% of Verdient Foods Inc., a manufacturer of plant-based protein based in Vanscoy, Canada.

As a result of the acquisition, Ingredion will operate two facilities that can produce a range of specialty pulse-based concentrates and flours from peas, lentils and fava beans.

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The acquisition of the Verdient Foods comes at a time when demand for plant-based protein is increasing as consumers preferences shift to a more nutritional diet centered towards a more sustainable lifestyle and lower dependency on animal proteins.

The global plant-based protein market size is for instance, projected to grow from USD 10.3 billion in 2020 to USD 14.5 billion by 2025, in terms of value, recording a compound annual growth rate (CAGR) of 7.1% during the forecast period.

“Acquiring 100% ownership in Verdient Foods enables Ingredion to accelerate net sales growth, further expand our manufacturing capability and co-create with our customers to serve the increasing consumer demand for plant-based foods.”

James P. Zallie -president and chief executive officer of Ingredion.

In recent years, the adoption of plant-based food & beverages among the consumers has been higher due to the broader scope of product availability, improved product developments and innovation into plant-based proteins and a broader scope of available alternatives and substitutes.

The COVID-19 pandemic has also had a profound impact on the plant-based protein market. consumers began adopting plant-based alternatives in response to shortages in meat supply, resulting in a sales surge of over 500% for meat alternative brands.

An analysis by MarketsandMarkets also noted that the pandemic has also influenced the sales of plant-based snacks, dairy alternatives, and supplements, as consumers move towards a healthier lifestyle.

Full acquisition of Verdient Foods thus comes as a natural strategy for Ingredion which has also been focusing on plant-based foods to grow sales and accelerate growth.

“Acquiring 100% ownership in Verdient Foods enables Ingredion to accelerate net sales growth, further expand our manufacturing capability and co-create with our customers to serve the increasing consumer demand for plant-based foods,” said James P. Zallie, president and chief executive officer of Ingredion.

Zallie further noted that over the last two years, Ingredion has strategically invested over US$200 million to build a leadership position in consumer-preferred plant-based proteins.

This Zallie says is central to Ingredion’s strategy and critical driving the company’s growth roadmap.

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