Glanbia's acquisition of Pizzey's Milling signals healthy competition
The acquisition of Canadian flax and fish-oil supplier Pizzey's Milling by Irish dairy and functional-ingredients giant Glanbia will add strength to the arm of the omega-3s industry, according to a leading omega-3s supplier.
"Major suppliers moving into the area gives the category a kick all the way down the supply chain and we welcome it," Jerry Luff, European business development and regional director at Australian-based omega-3s supplier, Nu-Mega told Functional Ingredients. "Glanbia has made no secret of its intention to move into this area, and it has other irons in the omega-3s fire, so this may not be its last move."
But he warned: "It takes time to get up to speed on delivering these ingredients into foods, and that is one thing the specialist suppliers like ourselves, Ocean Nutrition Canada and others have going for us. It is getting more competitive but that is as it should be." He said there was a danger the supply channel could become overcrowded, and a consolidation of players was likely in the medium to long term, but he noted demand was strong enough to sustain new entrants.
Glanbia's move follows Cargill's March announcement that it would begin supplying an omega-3 ingredient, although it is yet to reach market.Packaged Facts estimates the US omega-3s foods and beverages market will be worth $7 billion by 2011, from $2 billion this year.