MARKET OPPORTUNITIES

FOR YEAST EXTRACTS

Prepared by:

CPL Business Consultants

The Manor House, Howbery Park, Wallingford, Oxfordshire, OX10 8BA
Tel: +44 1491 822 844, info@cplconsult.com, www.cplconsult.com

Dr Robert Harwood
Joe Hart
Megha Chugh
Catherine Robinson

August 2011
CPL Business Consultants Yeast Extracts - i

TABLE OF CONTENTS

BACKGROUND AND OBJECTIVE .................................................................................................................. 1

METHOD .............................................................................................................................................................. 1
PRINCIPAL FINDINGS ...................................................................................................................................... 2
MARKET.............................................................................................................................................................. 2
Volumes and Values ...................................................................................................................................... 2
Market Segmentation ..................................................................................................................................... 5
Market Trends ............................................................................................................................................... 8
COMPETITIVE ENVIRONMENT ............................................................................................................................. 9
Rivalry ........................................................................................................................................................... 9
Drivers and Constraints .............................................................................................................................. 10
Barriers to Entry.......................................................................................................................................... 13
Key Success Factors .................................................................................................................................... 14
Likely Response to New Entrant .................................................................................................................. 15
PLAYERS ........................................................................................................................................................... 16
Relative Market Positions ............................................................................................................................ 16
Differentiation ............................................................................................................................................. 17
Manufacturing Processes and Patents ........................................................................................................ 18
Key Players.................................................................................................................................................. 20
PRODUCTS AND APPLICATIONS ......................................................................................................................... 28
Sources ........................................................................................................................................................ 28
Products....................................................................................................................................................... 29
Formats ....................................................................................................................................................... 31
Applications ................................................................................................................................................. 31
PRICES .............................................................................................................................................................. 32
ROUTES TO MARKET ......................................................................................................................................... 33
CUSTOMER NEEDS AND MARKET GAPS ............................................................................................................. 34
Client’s Product Fit with Current Market ................................................................................................... 34
Unmet Needs and Market Gaps ................................................................................................................... 35
Potential Areas of Development .................................................................................................................. 36
MARKETING APPROACH.................................................................................................................................... 38
CONCLUSIONS ................................................................................................................................................. 39
SWOT ANALYSIS ............................................................................................................................................. 42
STRATEGIC OPTIONS AND RECOMMENDATIONS ............................................................................... 43
STRATEGIC OPTIONS ......................................................................................................................................... 43
RECOMMENDATIONS ......................................................................................................................................... 47
INTRODUCTION ............................................................................................................................................... 48
OVERVIEW ........................................................................................................................................................ 48
Definitions ................................................................................................................................................... 48
History ......................................................................................................................................................... 48
Market ......................................................................................................................................................... 48
Production ................................................................................................................................................... 49
Commercial Yeasts ...................................................................................................................................... 49
Yeast Fractions ............................................................................................................................................ 50
YEAST EXTRACT ............................................................................................................................................... 51
Definition ..................................................................................................................................................... 51
Applications ................................................................................................................................................. 51
Production Process ..................................................................................................................................... 52
Main Components........................................................................................................................................ 52
Regulatory Status......................................................................................................................................... 53
HIGH NUCLEOTIDE YEAST EXTRACTS .............................................................................................................. 54
Background & Definition ............................................................................................................................ 54
Applications ................................................................................................................................................. 54
CPL Business Consultants Yeast Extracts - ii

Production Process ..................................................................................................................................... 54

AUTOLYSED YEAST .......................................................................................................................................... 55
Definition ..................................................................................................................................................... 55
Applications ................................................................................................................................................. 56
Production Process ..................................................................................................................................... 56
Main Components........................................................................................................................................ 56
MARKETS .......................................................................................................................................................... 57
VOLUMES AND VALUES .................................................................................................................................... 57
Global .......................................................................................................................................................... 57
European Market ......................................................................................................................................... 58
US Market.................................................................................................................................................... 58
Asian Market ............................................................................................................................................... 59
South American Market ............................................................................................................................... 59
MARKET SEGMENTATION ................................................................................................................................. 59
Geography ................................................................................................................................................... 60
Nucleotide Content ...................................................................................................................................... 60
Product Use ................................................................................................................................................. 61
Sources ........................................................................................................................................................ 61
MARKET TRENDS .............................................................................................................................................. 62
COMPETITORS ................................................................................................................................................. 64
OVERVIEW ........................................................................................................................................................ 64
Manufacturing Sites..................................................................................................................................... 65
MAIN PLAYERS ................................................................................................................................................. 67
23 companies ............................................................................................................................................... 67
DISTRIBUTORS ................................................................................................................................................ 191
1 company.................................................................................................................................................. 191
PRODUCTS & PRICES ................................................................................................................................... 193
PRODUCTS....................................................................................................................................................... 193
List of Products ......................................................................................................................................... 195
PRICES ............................................................................................................................................................ 233
CONTACT OVERVIEW ................................................................................................................................. 237
MARKET.......................................................................................................................................................... 237
Volumes and Values .................................................................................................................................. 237
Market Segmentation ................................................................................................................................. 239
Market Trends ........................................................................................................................................... 242
COMPETITIVE ENVIRONMENT ......................................................................................................................... 243
Drivers and Constraints ............................................................................................................................ 243
Barriers to Entry........................................................................................................................................ 245
Key Success Factors .................................................................................................................................. 246
Likely Response to New Entrant ................................................................................................................ 247
PLAYERS ......................................................................................................................................................... 247
Relative Market Positions .......................................................................................................................... 247
Differentiation ........................................................................................................................................... 248
Manufacturing Processes .......................................................................................................................... 249
Key Players................................................................................................................................................ 249
PRODUCTS AND APPLICATIONS ....................................................................................................................... 254
Sources ...................................................................................................................................................... 254
Products..................................................................................................................................................... 255
Formats ..................................................................................................................................................... 255
Applications ............................................................................................................................................... 255
PRICES ............................................................................................................................................................ 256
ROUTES TO MARKET ....................................................................................................................................... 257
CUSTOMER NEEDS AND MARKET GAPS ........................................................................................................... 258
Client’s Product Fit with Current Market ................................................................................................. 258
Unmet Needs and Market Gaps ................................................................................................................. 258
Potential Areas of Development ................................................................................................................ 259
CPL Business Consultants Yeast Extracts - iii

MARKETING APPROACH.................................................................................................................................. 260

SODIUM REDUCTION IN PROCESSED FOODS ...................................................................................... 262
SODIUM FUNCTIONALITY AND SODIUM REPLACEMENT ................................................................................... 264
Sodium Functionality in Food ................................................................................................................... 264
Salt (Sodium) Reduction in Processed Foods ............................................................................................ 264
Health issues which are related to high sodium consumption ................................................................... 265
Regulatory issues ....................................................................................................................................... 268
CONTACT REPORTS ..................................................................................................................................... 270
YEAST EXTRACT COMPANIES ......................................................................................................................... 270
11 contacts ................................................................................................................................................. 270
FLAVOUR HOUSES .......................................................................................................................................... 282
6 contacts................................................................................................................................................... 282
FOOD INGREDIENTS (NON-YE)........................................................................................................................ 295
6 contacts .................................................................................................................................................. 295
FOOD MANUFACTURES ................................................................................................................................... 300
8 contacts .................................................................................................................................................. 300
DISTRIBUTORS ................................................................................................................................................ 305
5 contacts .................................................................................................................................................. 305
GOVERNMENTAL............................................................................................................................................. 311
1 contact ................................................................................................................................................... 311
OTHERS ........................................................................................................................................................... 312
10 contacts ................................................................................................................................................ 312
PATENTS .......................................................................................................................................................... 324
OVERVIEW ...................................................................................................................................................... 324
ABSTRACTS OF 16 KEY / REPRESENTATIVE PATENTS ..................................................................................... 325
NEWS ................................................................................................................................................................. 347
OVERVIEW ...................................................................................................................................................... 347
Values and Volumes, Growth .................................................................................................................... 347
Consolidation ............................................................................................................................................ 347
Exits ........................................................................................................................................................... 347
Capacity Increases .................................................................................................................................... 348
Key Drivers................................................................................................................................................ 348
Key Restraints ............................................................................................................................................ 349
Trends ........................................................................................................................................................ 349
SUMMARY BY COMPANY ................................................................................................................................ 350
14 companies ............................................................................................................................................. 350
NEWS ARTICLES.............................................................................................................................................. 355
90 articles .................................................................................................................................................. 355
RECENT PUBLICATIONS ............................................................................................................................. 457
YEAST EXTRACTS AND NUCLEOTIDES ............................................................................................................ 457
RELATED RESEARCH AND IP.................................................................................................................... 463
PATENTS RELATING TO COMPANY Y .............................................................................................................. 464
COMPANY Z’S FLAVOUR MODULATION PATENTS ............................................................................................ 468
KEY FLAVOUR IMPACT COMPOUNDS ............................................................................................................. 472
TASTE RECEPTORS AS MECHANISMS FOR IDENTIFYING NEW OPPORTUNITIES ................................................. 477
OTHER USES OF YEAST EXTRACT ................................................................................................................... 479
APPENDIX ........................................................................................................................................................ 484
POSITION PAPER ON THE REGULATORY SITUATION OF ORGANIC YEAST EXTRACTS IN THE EU ..................... 484
NUCLEOTIDES IN INFANT FORMULA................................................................................................................ 491
Structure .................................................................................................................................................... 491
Functions ................................................................................................................................................... 491
Sources ...................................................................................................................................................... 491
The Effects of Nucleotide Supplementation ............................................................................................... 492
CPL Business Consultants Yeast Extracts - iv

Nucleotides and Infants ............................................................................................................................. 492

TABLES
TABLE 1 GLOBAL MARKET VOLUME FOR YEAST EXTRACTS, 2011 ........................................................... 57
TABLE 2 GLOBAL ANNUAL MARKET VOLUME GROWTH FOR YEAST EXTRACTS, 2011 ............................. 57
TABLE 3 WORLDWIDE YEAST EXTRACT PRODUCTION – 2008 & 2011 (ESTIMATED) .................................. 57
TABLE 4 WORLDWIDE YEAST EXTRACT PRODUCTION – 2008 (ESTIMATED) ............................................... 58
TABLE 5 MARKET SHARE - YEAST EXTRACTS PRODUCTION, BY GEOGRAPHY, 2008.................................. 60
TABLE 6 GLOBAL MARKET FOR YEAST EXTRACT BY PRODUCT TYPE, 2011 ............................................. 60
TABLE 7 GLOBAL MARKET FOR HIGH NUCLEOTIDE YE BY CUSTOMER TYPE, 2011 ................................. 61
TABLE 8 GLOBAL MARKET FOR YEAST EXTRACTS BY APPLICATION, 2011 .............................................. 61
TABLE 9 GLOBAL MARKET FOR YEAST EXTRACT BY SOURCE MATERIAL, 2011 ....................................... 62
TABLE 10 MANUFACTURING SITES OF PLAYERS........................................................................................... 65
TABLE 11 US IMPORT DATA FOR COMPANY 1, 2011 ................................................................................... 78
TABLE 12 COMPANY 1AMERICAS SUPPLIERS .............................................................................................. 79
TABLE 13 COMPANY 2PRODUCT APPLICATIONS .......................................................................................... 86
TABLE 14 COMPANY 2 PRODUCT APPLICATIONS ......................................................................................... 86
TABLE 15 COMPANY 3’S PRODUCT PROPERTIES .......................................................................................... 92
TABLE 16 COMPANY 3’S PRODUCT PROPERTIES ......................................................................................... 93
TABLE 17 COMPANY 4’S PRODUCT PROPERTIES .......................................................................................... 94
TABLE 18 COMPANY 4’S PRODUCT PROPERTIES .......................................................................................... 95
TABLE 19 COMPANY 4 – US IMPORT DATA ................................................................................................. 98
TABLE 20 COMPANY 5 US SHIPMENTS 2007-2011 .................................................................................... 106
TABLE 21 COMPANY 5’S SHIPMENTS TO US CUSTOMERS IN US, 2010....................................................... 107
TABLE 22 COMPANY 6 – YEAST EXTRACTS PRODUCTS ............................................................................. 111
TABLE 23 COMPANY 7 PRINCIPAL SUBSIDIARIES, INGREDIENTS AND FLAVOURS ..................................... 133
TABLE 24 COMPANY 8– PRODUCT RANGE 1 ............................................................................................... 138
TABLE 25 COMPANY 8 – PRODUCT RANGE 2 .............................................................................................. 139
TABLE 26 COMPANY 8 – PRODUCT RANGE 3 .............................................................................................. 139
TABLE 27 COMPANY 8 – PRODUCT RANGE 4 .............................................................................................. 139
TABLE 28 COMPANY 8 – PRODUCT RANGE 5 .............................................................................................. 140
TABLE 29 COMPANY 8 – YEAST PRODUCTS 6 ............................................................................................. 142
TABLE 30 COMPANY 9 US SHIPMENTS 2008-2011 .................................................................................... 145
TABLE 31 COMPANY 10 PRODUCTS ........................................................................................................... 150
TABLE 32 COMPANY 11 FINANCIAL DATA 2007-2008............................................................................... 154
TABLE 33 COMPANY 11 STANDARD YEAST EXTRACT LINE ...................................................................... 155
TABLE 34 HIGH NUCLEOTIDE YEAST EXTRACT LINE ................................................................................ 156
TABLE 35 COMPANY 11 LINE 1 .................................................................................................................. 156
TABLE 36 COMPANY 11 LINE 2 .................................................................................................................. 156
TABLE 37 COMPANY 11 HYDROLYZED VEGETABLE PROTEINS ................................................................. 157
TABLE 38 COMPANY 11 US IMPORTS, 2011............................................................................................... 159
TABLE 39 COMPANY 12 YEAST PRODUCTS ................................................................................................ 160
TABLE 40 COMPANY 12 - USES OF YEAST EXTRACT IN FOOD ................................................................... 161
TABLE 41 COMPANY 12 - YEAST EXTRACT APPLICATION RATES ............................................................. 161
TABLE 42 COMPANY 12 YEAST EXTRACT PEPTIDE RATIOS ....................................................................... 161
TABLE 43 COMPANY 12 – RNA PRODUCTS LISTS...................................................................................... 162
TABLE 44 COMPANY 13 YEAST EXTRACT PRODUCTS ................................................................................ 168
TABLE 45 COMPANY 14 FACILITIES ........................................................................................................... 173
TABLE 46 COMPANY 15’S PRODUCT SERIES A ........................................................................................... 186
TABLE 47 COMPANY 15’S PRODUCT SERIES B ........................................................................................... 187
TABLE 48 COMPANY 15’S US SHIPMENTS 2007-2011 ............................................................................... 188
TABLE 49 COMPANY 15’S SHIPMENTS BIGGEST US CUSTOMERS 2010 ..................................................... 188
TABLE 50 SUMMARY OF YEAST EXTRACT PRODUCTS FROM MAJOR PLAYERS .......................................... 193
TABLE 51 YEAST EXTRACTS COMPETITOR’S PRODUCTS ............................................................................ 197
TABLE 52 COMPANY 16’S YEAST EXTRACT PRICES .................................................................................... 234
TABLE 53 COMPANY 16’S YEAST EXTRACTS PRICES .................................................................................. 234
CPL Business Consultants Yeast Extracts - v

TABLE 54 COMPANY 1’S YEAST EXTRACT PRICES ...................................................................................... 234

TABLE 55 COMPANY 9’S YEAST EXTRACT PRICES ...................................................................................... 235
TABLE 56 COMPANY 14’S YEAST EXTRACT PRICES .................................................................................... 235
TABLE 57 COMPANY 17’S ACCEPTABLE YE BUYING PRICES ...................................................................... 236
TABLE 58 GLOBAL MARKET VOLUME FOR YEAST EXTRACTS, 2011 ......................................................... 237
TABLE 59 GLOBAL ANNUAL MARKET VOLUME GROWTH FOR YEAST EXTRACTS, 2011 ........................... 237
TABLE 60 WORLDWIDE YEAST EXTRACT PRODUCTION – 2008 & 2011 (ESTIMATED) ................................ 238
TABLE 61 WORLDWIDE YEAST EXTRACT PRODUCTION – 2008 (ESTIMATED) ............................................. 238
TABLE 62 MARKET SHARE - YEAST EXTRACTS PRODUCTION, BY GEOGRAPHY, 2008................................ 239
TABLE 63 GLOBAL MARKET FOR YEAST EXTRACT BY PRODUCT TYPE, 2011 ........................................... 240
TABLE 64 GLOBAL MARKET FOR HIGH NUCLEOTIDE YE BY CUSTOMER TYPE, 2011 ............................... 240
TABLE 65 GLOBAL MARKET FOR YEAST EXTRACTS BY APPLICATION, 2011 ............................................ 241
TABLE 66 GLOBAL MARKET FOR YEAST EXTRACT BY SOURCE MATERIAL, 2011 ..................................... 241
TABLE 67 RELATIVE MARKET POSITIONS OF GLOBAL YEAST EXTRACT COMPANIES, 2011 ....................... 247
TABLE 68 GLOBAL YEAST EXTRACT COMPANIES MARKET SHARE AND VOLUMES, 2011........................... 248
TABLE 69 WORLDWIDE YEAST EXTRACT PRODUCTION – 2008 (ESTIMATED) ............................................. 319
TABLE 70 WORLDWIDE YEAST EXTRACT PRODUCTION – 2008 & 2009 (ESTIMATED) ................................ 320

FIGURES
FIGURE 1 GENERIC PROCESS FOR YEAST EXTRACT PRODUCTION ............................................................... 52
FIGURE 2 PROCESS FOR HIGH NUCLEOTIDE YEAST EXTRACT PRODUCTION ............................................... 55
FIGURE 3 GENERIC PROCESS FOR AUTOLYSATE PRODUCTION .................................................................... 56
FIGURE 4 COMPANY 2’S ORGANISATION STRUCTURE ................................................................................. 84
FIGURE 5 COMPANY 2’S R&D EXPENDITURE ............................................................................................. 88
FIGURE 6 ORGANISATION YEAST EXTRACT BUSINESS WITHIN COMPANY 6 ............................................. 110
FIGURE 7 COMPANY 7 SAVOURY INGREDIENTS ORGANISATION ............................................................... 123
FIGURE 8 COMPANY 7 REVENUE BY DIVISION .......................................................................................... 127
FIGURE 9 COMPANY 7 REVENUE BY REGION ............................................................................................ 128
FIGURE 10 COMPANY 7 REVENUE IN MATURE AND EMERGING MARKETS ................................................. 129
FIGURE 11 COMPANY 7’S PLANT ................................................................................................................ 135
FIGURE 12 ORGANISATION OF COMPANY 10 ............................................................................................... 147
FIGURE 13 COMPANY 10 SAVORY PRODUCTS – PROCESS DIAGRAM ........................................................... 150
FIGURE 14 COMPANY 10 YE TASTE PROFILES ............................................................................................ 152
FIGURE 15 STRUCTURE OF RNA ................................................................................................................. 162
FIGURE 16 COMPANY 14 TECHNOLOGIES ORGANISATION ......................................................................... 170
FIGURE 17 COMPANY 14 REVENUES 2005-2010 ......................................................................................... 171
FIGURE 18 COMPANY 14 REVENUE SPLIT BY PRODUCT TYPE ..................................................................... 173
FIGURE 19 ORGANISATIONAL CHART FOR COMPANY 18 ............................................................................ 184
FIGURE 20 EUROPEAN DEATHS IN 2000 ATTRIBUTABLE TO SELECTED LEADING RISK FACTORS ................ 266