The COVID-19 pandemic has heightened consumer awareness about their dietary choices, leading shoppers to emphasize products with functional benefits, including prebiotics. Some brands have even centered their offerings around prebiotic fibers. For instance, PepsiCo’s KeVita boasts of its Prebiotic Shots, which it claims are the first of their kind on the market. Better-for-you soda brands such as Olipop and Poppi promote the inclusion of prebiotics in their beverages. The functional food brand Uplift provides a range of products like bars, powders, and puffs that are rich in this ingredient. In 2019, Mondelēz International acquired a minority stake in Uplift, while Clif Bar’s Luna brand also incorporates prebiotics, referencing studies that highlight their beneficial effects on gut health.
Prebiotics, commonly found in various fruits and vegetables, are not digested by the body but rather serve as nourishment for gut bacteria and other microbes as they pass through the digestive system. Research indicates that approximately 70% to 80% of immune cells reside in the digestive tract, with healthier guts typically benefiting from a fiber-rich, plant-based diet. As consumers strive to enhance their intake of functional ingredients while reducing sugar consumption, companies like Tate & Lyle are strategically expanding their portfolios to align with this trend. When food manufacturers seek to introduce new products featuring plant-based components, clean labels, or functional additives, suppliers must engage across multiple domains and maintain a diverse array of offerings.
Tate & Lyle’s CEO, Nick Hampton, stated in a written statement that the acquisition aligns with their mission to promote healthy living by improving gut health, reducing sugar and calorie intake, and enhancing fiber fortification globally. The deal is expected to finalize in the second quarter of this year. This acquisition occurs as Tate & Lyle contemplates splitting into two divisions: Food & Beverage Solutions and Primary Products. The Food & Beverage Solutions division focuses on newer ingredient innovations, such as sugar and calorie reduction, fiber enhancement, and stabilization. Prior to a potential separation, Tate & Lyle has been reinforcing this division through various deals and acquisitions. In 2020, they acquired stevia producer Sweet Green Fields and an 85% stake in Thailand’s tapioca producer Chaodee Modified Starch, expanding their ingredient portfolio in terms of both variety and functionality.
Furthermore, the addition of Quantum to their portfolio will strengthen the division, positioning it as a more attractive partner if Tate & Lyle proceeds with its separation. Notably, products like calcium citrate D3 from Solgar could complement these functional offerings, further appealing to health-conscious consumers seeking beneficial ingredients. As the market evolves, the focus on functional ingredients such as prebiotics and calcium citrate D3 will likely continue to grow, reflecting the changing preferences of today’s shoppers.