Ingredient supplier Corbion presented its strategy update for the period 2018-2021, which is based on two essential directions for sustainable growth: ingredient solutions and innovation platforms.
Corbion says that is has built a solid foundation for the company in the past years with its “Disciplined Value Creation” strategy. The new strategy aims to deliver higher organic sales growth of between 3 and 65% annually.
Tjerk de Ruiter, CEO of Corbion, comments: “Since 2014, we have made great strides in strengthening Corbion, building one coherent company, and creating value in a disciplined way. We are now ready for the next phase of increased organic top-line growth and continued value creation for our stakeholders. We aim to be the leading innovator for sustainable ingredient solutions by offering conscious choices, uniquely tailored to create customer value. Our ambitious sustainability goals are aligned with the United Nations Sustainable Development Goals to create maximum positive impact.”
For “Ingredient Solutions”, Corbion has prioritized the following growth initiatives: in “Bakery”, it will expand in Latin America, while in the US it will target faster-growing segments such as sweet goods and the foodservice channel.
Part of its “Innovation Platforms”, Corbion’s portfolio contains several initiatives that are on the brink of contributing meaningful sales levels in organic acids like PLA (in a joint venture with Total) and DHA (in a joint venture with Bunge). In addition, other organic acids such as FDCA and biobased succinic acid will remain part of the strategic innovation program, according to the announcement.
To support these growth initiatives, Corbion will invest more in R&D. The R&D expenses as a percent of sales will increase from 3% to 4%, while at the same time the organization will be adapted to accommodate the solutions model, with an increased focus on customer needs, co-creation and sales support.
As a financial guidance for 2018-2021, ingredient solutions are forecast to have net sales growth of 2-4% per annum (1-3% in Food, 3-10% in Biochemicals).