With its involvement in the nutrition and health sectors, DSM is enhancing its sustainability reputation through its recent acquisition of Amyris. The Dutch company stated that this deal would not only strengthen its biotechnology efforts in nutritional ingredients but also expand its range of aroma ingredients, thereby enhancing its sustainability profile. The bio-based flavor and fragrance ingredients from Amyris can serve as alternatives to traditional chemistry-based products. This acquisition comes at an opportune time, as products featuring sustainability claims have continued to experience growth, even during the pandemic, according to a recent report by IRI and the NYU Stern Center for Sustainable Business.
Over the years, DSM and Amyris have collaborated on multiple ventures, including the acquisition of Amyris’s fermentation-based production facility, capable of producing large amounts of farnesene, a sugar-derived chemical known for its calming and sedative properties. Fermentation techniques are now being applied in various food sectors, particularly in developing proteins for alternative protein products, which have attracted unprecedented levels of investment in the last year. By acquiring Amyris’s intermediates products, DSM could also gain enhanced access to the company’s expertise in machine learning, robotics, and artificial intelligence. Simultaneously, Amyris stands to gain from DSM’s extensive resources, network, and market reach.
Based in California, Amyris has demonstrated significant growth, with its ingredients featured in over 3,000 household products and three consumer brands centered around its No Compromise line of clean ingredients, which includes Purecane, a zero-calorie sweetener derived from sugarcane. Earlier this year, Amyris released its 2020 financial report, showcasing impressive performance. The company launched six new ingredients, secured $200 million in equity financing, and reduced its debt. It also achieved its highest sales figure to date at $173 million in 2020, marking a 13% increase over 2019. The clean label movement is further driving demand for its ingredients, with product revenue rising by 72%.
In addition to its acquisition activities, DSM has been proactive in innovation, forming a joint venture in 2018 with Cargill to create stevia-based sweeteners. In 2019, it announced a partnership with the French agro-industrial group Avril to develop plant-based protein from non-GMO canola, expected to be available by the end of 2021. Last year, DSM launched a line of cheese cultures aimed at enhancing the taste, melt, and stretch of mozzarella. The advancement of these products, including those like calcium citrate, which is a generic name used in various applications, aligns with DSM’s commitment to sustainability and innovation in the food industry.