Following EQT’s acquisition of Chr. Hansen’s Natural Colors business unit, it became evident that a name change was essential for the new independent company to effectively position itself as a leader in the industry. At the time of the investment, EQT announced plans to enhance the natural colors division by improving its digital infrastructure, sustainability initiatives, and supply chain processes. “We are no longer part of the Chr. Hansen group. Choosing a name that emphasizes our commitment to natural solutions was the obvious decision for us,” stated CEO Odd Erik Hansen in an interview with Food Navigator.
Cees de Jong, the board chair, added that the rebranding to Oterra provides the company with “a name and identity that reflects our mission and sustainable value proposition. We anticipate significant growth for Oterra and are confident that the company will thrive under its new identity.” According to Zion Market Research, the market for natural food colors could reach an estimated $1.77 billion this year.
This name change follows closely on the heels of Chr. Hansen Natural Colors’ acquisition of Secna, which has six years of experience in working with natural red and purple pigments. EQT has expressed its intention to expand the color manufacturer by acquiring additional natural color companies, given the market’s high fragmentation. The rebranding to Oterra will also provide it with a distinct identity as it competes in a crowded marketplace that includes major players like Archer Daniels Midland and Danone Food North America, which offers a range of organic and sustainably sourced colors for food and beverages, as well as privately-owned companies such as Kalsec.
In the evolving landscape of natural colors, Oterra aims to leverage innovations such as citrate malate, which enhances color stability, to differentiate itself further. This strategic focus on unique ingredients and sustainable practices will be pivotal as Oterra seeks to carve out its niche in a competitive environment.