Little time has handed since Novonesis formally got here into being. The results of a merger between Denmark’s Chr Hansen and Novozymes, Novonesis goals to ‘unlock the limitless potential of biosolutions’ in what’s now a €3.7bn enterprise.
Whereas all this sounds spectacular, former shoppers of Novozymes and Chr Hansen can be eager to understand how the merger impacts these corporations’ respective portfolios. What’s the meals and beverage technique for Novonesis going ahead?
First issues first: who’s heading up the brand new F&B division?
Previous to the merger, meals and beverage substances fell below Novozymes’ Meals & Beverage and Chr Hansen’s Meals Cultures & Enzymes companies. The latter was headed up by Jacob Vishof Paulsen.
Now Paulsen is taking up the highest food and drinks job at Novonesis, the place he heads up the newly joint division of Meals & Drinks. The portfolio spans substances that reach shelf-life in classes equivalent to dairy and bakery; are designed to enhance toddler diet; and that goal to spice up style, texture, and diet in plant-based meals.
On the chief crew, Paulsen is within the minority. Two-thirds are made up of ex-Novozymes staff, in comparison with Chr Hansen’s one-third. Former Chr Hansen CEO Mauricio Graber, for instance, has stepped down, whereas his Novozymes counterpart Ester Baiget steps up.
This begs the query: why was Paulsen chosen for the highest job in F&B?
The reply is probably going that almost all of gross sales within the portfolio will be attributed to Chr Hansen’s substances, fairly than Novozymes’, and Paulsen has important expertise working with these options.
When posed the query, the brand new EVP of Meals and Beverage put it right down to his ’20 years of expertise within the meals and beverage trade’ and former function main the ‘largest division in Chr Hansen’. Previous to that function, he fronted Chr Hansen’s former flavours division and served as EVP of Pure Colors – each earlier than they have been divested.
“I’ve broad expertise within the meals and beverage trade.”
Dangers of an substances merger
One of many largest challenges going through a newly merged enterprise with current shoppers is making certain enterprise continuity.
This was entrance of thoughts for Paulsen when taking the helm of Novonesis’ Meals & Drinks.
“I knew an vital level for me, as we merged, was to ensure the purchasers we had from the 2 legacy corporations. They need to not see any disruption to the commitments we’ve already given them.”
The excellent news for Novonesis is that each corporations knew nicely upfront a merger was on the horizon. “We had a superb head begin,” revealed Paulsen. “It’s
one thing I paid an amazing quantity of consideration to and we’ve efficiently come via the primary interval, securing nice relations [with pre-existing clients].”
Provide disruption shouldn’t be solely a danger for not too long ago merged companies, however in immediately’s geopolitical local weather, for meals corporations throughout the board. Being a much bigger participant now is a bonus on this entrance, instructed the F&B lead.
From dairy to bread, drinks and meat, Novonesis faucets into core merchandise ‘fairly broadly’. “We’re nicely positioned if one among them goes up or down. It’s small nuances, as a result of we consider all these classes will develop.”
Paulsen continued: “I don’t see massive disruptions at our doorstep. It’s extra for us to have the ability to disrupt and speed up.”
And the alternatives? ‘Larger is best’
On the chance aspect of issues, an apparent one lies in portfolio synergies. Chr Hansen’s and Novozymes’ portfolios are complementary, we’re instructed. The previous brings probiotics and micro organism, the latter, enzymes.
Based on Paulsen, income synergies exist inside a number of classes. Take cheese for instance. Cheese has lengthy been on the core of Chr Hansen’s cultures enterprise, and now with the merger affords up Novozymes’ ‘primary analysis platform’ for enzymes.
“Think about what it means to faucet into the most important pressure library of enzymes,” the F&B chief instructed FoodNavigator. “The cheese trade is constantly trying to get extra out of milk, optimising the uncooked materials base and securing the performance of cheese – style, texture, sliceability, or different. These composite options of enzymes and cultures is one thing we see nice perspective in.”
In bringing collectively two ingredient suppliers with complementary applied sciences, Novonesis considers itself ‘the main substances participant within the meals and beverage house’. As a merged enterprise, Paulsen calculates the Meals & Drinks division is reaching two billion shoppers per day. “There’s an unlimited alternative when it comes to the size and important mass we’re reaching collectively.”
Novonesis’ meals and beverage technique going ahead
In order a number one substances provider, which up-and-coming developments does Novonesis really feel nicely positioned to answer?
Intestine well being is a outstanding pattern Paulsen has noticed in latest occasions. As consciousness across the microbiome builds, so too does demand for probiotics. And never simply in dairy, however in dairy-free options equivalent to ‘vegurt’ merchandise (plant-based yoghurt constituted of nuts, cereals, legumes or seeds), we have been instructed.
“We see quite a lot of alternatives for probiotics in dairy yoghurt too, but additionally have clients asking us find out how to develop their use into extra meals classes. In order that’s one thing we’re investing in.”
Different shopper calls for, apart from style and texture, embody a want for a local weather pleasant footprint, diet, affordability, and a transfer away from ultra-processed meals.
Trying to the long run, Novonesis desires to remain true to Chr Hansen and Novozymes’ legacy methods, which Paulsen described as ‘excelling in its core’. These classes embody dairy, bakery, and beverage with substances designed to extend shelf life, enhance style, and improve meals security and productiveness.
“We can not surrender our massive commitments on driving progress and innovation in these areas for mass consumption.”
As as to whether Novonesis plans to develop meals and beverage capabilities via acquisitions, it’s unlikely. “For the meals and beverage house, we don’t want it. We’re specializing in organically investing in functions, frontline individuals, and competences.”
