The acquisition of Innova Flavors will expand Synergy Flavors' savory capabilities and fuel new product development in meat alternatives, sauces, side dishes, and snacks, said the company.
The purchase also adds process flavors (i.e. a group of flavors or flavoring ingredients that are produced from precursor materials via some type of processing technique such as thermal processing or enzyme modification) to Synergy’s portfolio of extracts, essences, and compounded flavors to help differentiate customers' products in the increasingly competitive food and beverage market.
According to a report by Emergen Research, the global plant-based food and beverage alternatives market is forecasted to hit US$32.29bn by 2027, up from US$10.63bn in 2019, driven by an increase in plant-based dairy and plant-based meat alternatives.
In the US, retail sales of plant-based foods surpassed $7bn in 2020 (up 27% from 2019) with plant-based milk ($2.5bn) and plant-based meat ($1.4bn) representing the largest share of the market, according to data from the Plant Based Food Association and the Good Food Institute.
“This acquisition offers significant benefits to Synergy customers by providing them access to a proven range of flavors to meet the growing demand for natural flavorings and savory ingredients. In addition, these products complement Synergy’s current offerings for rapidly growing plant based alternative food & beverages globally,” Rod Sowders, president and CEO of Synergy Flavors, said in a statement.
Jason Hawkins, CEO of Carbery Group, added, “We know acquiring Innova Flavors will make sense for our US flavor customers, will enhance our global business in Asia and Central and South America, and bring opportunities right across our platforms of Dairy, Taste and Nutrition.
"This deal is a strategic opportunity to grow our business, to strengthen our offerings for our customers and maximize what we can deliver for our shareholders,” said Hawkins.