DSM integrates food and beverage business for ‘one-stop-shop’

By Katy Askew

- Last updated on GMT

DSM says its new structure reflects emerging trends in the food industry/ Pic: GettyImages AleksandarNacik
DSM says its new structure reflects emerging trends in the food industry/ Pic: GettyImages AleksandarNacik

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Royal DSM is launching a new integrated food and beverage operating structure that it says well deliver a ‘one-stop-shop’ of solutions for food and drink brands.

The company is unifying three areas of its nutrition business: food specialties, hydrocolloids and part of its nutritional products group. The move will ‘closely align’ the company’s structure with emerging customer and market needs, the ingredient supplier contended. It combines the full range of DSM’s food and beverage ingredients, expertise and science-based taste and texture solutions.

The new F&B organization will focus on helping consumers ‘enjoy it all’ without having to choose between taste, texture and health. This differentiating message will be the cornerstone of a new campaign, the company revealed.

Responding to ‘new pressures’ on producers

DSM said that the global food sector is set to continue to grow as the world’s population increases. However, the Dutch company said, this is placing ‘new pressures’ on manufacturers in an ‘already competitive space’. Food businesses need to increase innovation and ‘get to market quickly’.

By establishing a ‘one-stop-shop’ of ingredients, solutions and end-to-end capabilities, DSM will help food and beverage manufacturers worldwide fast-track product development and achieve efficient production, the company claimed.

Shortening innovation pipelines are not the only challenge facing the industry. DSM noted that the food sector is ‘converging’ with the health and wellness space, with products expected to be ‘delicious’, healthy and environmentally and socially responsible. “DSM’s strategy aims to support this market advancement through the creation of one food & beverage business group that encompasses the ingredients, global and local expertise and solutions provided by its previously distinct food specialties, hydrocolloids and nutritional products business areas,” DSM said.

DSM’s focus: health, nutrition & bioscience

The company said its new simplified structure represents the activation of DSM’s announcement last autumn that it will become a fully-focused health, nutrition and bioscience company.

“As a leading provider of vitamins, minerals and other micronutrients, an innovator in enzyme solutions, and a frontrunner in dairy cultures, DSM has unrivalled nutritional science expertise and deep application knowledge which is paired with prominent advocacy for healthier and more sustainable food systems,”​ DSM suggested.

The group has completed a number of recent acquisitions that expand its drive into nutrition and biosciences, including dairy-based flavouring company First Choice Ingredients.

“The food and beverage market is an incredibly exciting and dynamic space, so it’s a fantastic time for both the industry and DSM,”​ commented Patrick Niels, Executive VP Food & Beverage at DSM. “This new organization will better serve our customers by providing one-stop-shop access to our full portfolio of food and beverage solutions – unleashing our full potential and cementing our position as a powerhouse for the food and beverage industry. With DSM, our customers get more than a supplier. They get a purpose-led partner that understands their business needs and will help them innovate, improve and grow. The result? Delicious food and beverage products that are good for people and good for the planet.”

The company’s solutions also focus on process efficiencies, food loss and waste reduction and lowering the environmental impact of production and consumption – while also enhancing food’s nutritional profile.

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