Ingredients supplier Tate & Lyle has snapped up a tapioca producer in Thailand to broaden the range of goods it can offer customers.
The business, which manufactures a host of ingredients such as stevia, sucralose, fructose, has agreed to acquire an 85% shareholding in Chaodee Modified Starch Co (CMS).
This investment extends Tate & Lyle’s presence in speciality tapioca-based texturants and establishes a dedicated production facility in the main tapioca growing region of eastern Thailand.
Tate & Lyle said the deal would enable it to offer a broader range of tapioca-based products to meet customers’ needs for better tasting and clean label foods in categories including dairy, bakery, snacks, noodles and soup, sauces and dressings. The starch is commonly used in powder form as a thickener for soups.
CEO Nick Hampton said: “We are delighted to announce this investment to expand our tapioca offering and grow our texturant portfolio.
“CMS brings new tapioca capabilities, raw material sourcing expertise and additional production capacity to Tate & Lyle and expands our presence in the higher growth Asia Pacific region.”
Tate & Lyle will operate CMS in partnership with the former owner. Together with its partner, the business intends to invest in the facility over the next three years to increase significantly capacity for higher functionality starches.
More than 90% of tapioca starch output globally comes from Thailand.