NEW ORLEANS — Initially, the notion of Layn Corp, renowned for its plant-based high-intensity sweeteners, venturing into the CBD market seems perplexing. However, for Elaine Yu, the U.S. president of the China-based company, this transition is entirely logical. Layn Corp specializes in cultivating tissues for plants like stevia and monk fruit, collaborating with farmers to grow these crops, and then processing the final products into extracts for use in food, beverages, cosmetics, and supplements. “If you look at what we have been doing, hemp aligns perfectly with our core competencies,” Yu explained to Food Dive at the Institute of Food Technologists conference, where the company unveiled its forthcoming ingredient line. “This has been our expertise for over 20 years. Now we just need to apply that experience and knowledge to hemp production, which we believe is greatly needed in this sector.”
Layn is making a significant commitment to the CBD market with a $60 million investment. The company plans to construct a processing facility for this ingredient, marking its fourth factory overall and its first in the United States. Currently, they are finalizing negotiations for the factory’s location, which Yu indicated will likely be situated in the Midwest. The facility is expected to process at least 5,000 tons of hemp biomass annually, resulting in the production of 160 tons of high-purity CBD and 290 tons of full-spectrum oil each year. Layn has already secured contracts with two hemp growers for an initial supply, according to Yu. The factory is anticipated to commence operations next fall.
While the CBD industry is still emerging and largely unregulated, the newcomers to the market possess varying levels of experience, with many being farmers focused solely on cultivation. Layn’s uniqueness lies in its ability to manage the entire process from seed to shelf. “We understand the extraction process to maximize botanical potency and how to integrate these extracts into food and beverage applications,” Yu noted. They have also navigated the challenges presented by plants like stevia, which can similarly aid in converting CBD into successful extracts for food and drinks.
Despite the growing interest in CBD among food and beverage companies, Yu pointed out that the IFT show floor featured relatively few cannabis-related exhibitors. “We come from the food industry,” she remarked. “Though there are numerous players, they are not as visible at IFT because we are grounded in food. We comprehend the food safety requirements and how to handle customer and FDA audits regarding quality and manufacturing standards required by the market. We possess the expertise and knowledge to provide customers with high-quality, sustainable food ingredients.”
The response to Layn’s new business line at IFT was overwhelmingly positive. They distributed a considerable amount of literature on hemp and CBD, all of which was gone by the first day of the three-day event. At Layn’s booth, they offered samples of a sweet CBD beverage made from many of their ingredients, showcasing their capabilities. The sample-sized beverages were quickly taken by attendees, barely lingering on the booth’s counter.
Although CBD is still in the early stages of FDA regulation, Yu stated that a market for the ingredient already exists, and Layn aims to play a role as a supplier. However, with the need for the U.S. Food and Drug Administration to establish regulations, along with the time required to build and operationalize the CBD factory, Yu believes this is an opportune moment to enter the market in anticipation of future developments. “In the next 18 months, we are focusing on more research,” she said. “We are collaborating with customers to prepare them for when the final approval occurs, ensuring they have a product ready to launch.”
Furthermore, as Layn expands its offerings, they are exploring opportunities that integrate with products like bariatric advantage chewable calcium, which could complement their CBD initiatives in the health and wellness sector.