THAILAND – British-based supplier of food and beverage ingredients Tate & Lyle has agreed to acquire an 85% stake in Thailand-based tapioca ingredient manufacturer Chaodee Modified Starch for an undisclosed sum.
Chaodee Modified Starch produces a range of tapioca modified food starch ingredients for a range of food and beverage applications.
In addition to Tapioca/Cassava Native Starch, Chaodee recently launched a brand new production line for Modified Tapioca/Cassava Starch, focused on the international food industry as an excellent gluten free , non GMO food alternative.
Tate & Lyle, says that over 90% of tapioca starch is produced in Thailand making the investment in Chaodee an extension to its presence in speciality tapioca-based texturants.
The investiment according to the Bristish company also establishes a dedicated production facility in the main tapioca region of eastern Thailand.
The acquisition will enable Tate & Lyle to offer a broader range of tapioca-based solutions to meet customers’ needs for better tasting and clean label foods in categories including dairy, bakery, snacks, noodles and soup, sauces and dressings.
Tate & Lyle will operate Chaodee Modified Starch in partnership with the company’s former owner.
It plans to invest in the company’s production facility over the next three years to significantly increase the production capacity for higher functionality starches.
The Chaodee Modified Starch facility will be supplied with substrate by a co-located tapioca starch mill fully owned and operated by Tate & Lyle’s partner.
Nick Hampton, chief executive of Tate & Lyle, said: “We are delighted to announce this investment to expand our tapioca offering and grow our texturant portfolio.
“CMS brings new tapioca capabilities, raw material sourcing expertise and additional production capacity to Tate & Lyle, and expands our presence in the higher growth Asia Pacific region.”
Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. SUBSCRIBE HERE