Nordic sugar giant Danisco makes niche investment in South Africa

subscriber | 09 July, 2007

JOHANNESBURG. The Nordic sugar giant Danisco acquires the South African bakery enzyme manufacturer Innovative Ingredients in Cape Town, South Africa, the company stated ahead of the weekend.

No amounts were mentioned in a deal that is expected to be wrapped up next month.

"The acquisition of Innovative Ingredients will significantly strengthen Danisco's presence in the South African industrial bakery enzymes market that ranks fifth in size worldwide. Based on our cutting-edge research and development, manufacturing capability and unparalleled knowledge of food applications, we continue to enhance our leading position to supply the best tailor-made enzymes to achieve specific food manufacturer goals," says Lars Obel, Business Director, Food & Beverage Enzymes, Danisco, in a press statement.

Innovative Ingredients is small in size, it employs 13 people, but has a large influence as it supplies enzymes to the whole baking industry in South Africa.

The company was formed in 1998 but has expanded its influence in South Africa very quickly through technological superiority.

Danisco plans to merge its sales office in Cape Town with Innovative Ingredients.

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Danisco continues its strategy of specialisation and leaves the bulk raw sugar market, which was its origin, to larger international players.

In Southern Africa British Sugar has made inroads through the purchase of 50 % in South Africa’s second largest sugar manufacturer Illovo Sugar.

The largest sugar manufacturer in the region, Tongaat Hulett, has invested over € 100 million in expanding sugar plantations and a mill in Mozambique. Its aim is to export most of the production to EU and take advantage of relaxed import regulations on sugar, which in turn affects the likes of Danisco.

Most sugar refineries in the Nordic countries are either closed down or are on the verge of closing down.