NEW ORLEANS — At first glance, the prospect of Layn Corp, renowned for its plant-based high-intensity sweeteners, venturing into the CBD market may seem perplexing. However, for Elaine Yu, the U.S. president of the China-based company, this strategy is entirely logical. Layn’s expertise lies in cultivating tissues from plants like stevia and monk fruit, collaborating with farmers to grow these plants, 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 shared with Food Dive at the Institute of Food Technologists conference, where the company unveiled its upcoming ingredient line. “This is our expertise built over more than 20 years. Now, we simply need to leverage that experience and knowledge in 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 CBD, marking its fourth factory overall and the first in the United States. They are currently finalizing negotiations for the factory’s location, which Yu indicated would likely be situated in the midwestern United States. Once operational, this facility will have the capacity to process at least 5,000 tons of hemp biomass annually, yielding approximately 160 tons of high-purity CBD and 290 tons of full-spectrum oil each year. Yu mentioned that Layn has already established contracts with two hemp growers for initial supplies, with the factory expected to commence operations by next fall.
While the CBD industry remains relatively new and largely unregulated, the participants entering the market come from diverse backgrounds, with many being farmers who primarily focus on cultivation. Layn distinguishes itself by possessing the ability to oversee the entire process from seed to shelf, according to Yu. The company also has the expertise to extract botanical substances for maximum potency and is adept at integrating these extracts into food and beverage applications. Yu explained that they have successfully navigated the challenges presented by plants like stevia, which positions them well to convert CBD into effective extracts for the food and beverage sector.
Despite the growing interest in CBD within the food and beverage industry, Yu observed that the IFT exhibition floor featured relatively few companies focused on cannabis. “We originate from the food industry,” Yu noted. “While there are numerous players, many are not prominently represented at IFT because we come from the food sector. We understand the requirements for food safety and how to manage customer audits and FDA assessments concerning quality and manufacturing standards. We possess the expertise and knowledge to deliver high-quality, sustainable food ingredients.”
Yu reported that the response to Layn’s new line of business at IFT was overwhelmingly positive. The company brought a substantial amount of literature on hemp and CBD, all of which was distributed on the first day of the three-day event. At Layn’s booth, they provided samples of a sweet CBD beverage made from many of their ingredients to showcase their capabilities. The shot glass-sized samples were eagerly snatched up by attendees, spending hardly any time on the booth counter.
Although CBD is currently in the early stages of FDA regulation, Yu noted that there is already a market for the ingredient, and Layn aims to establish itself as a supplier. However, with the FDA’s need to finalize regulations and the time required to build and operate the CBD factory, Yu believes this is an opportune moment to enter the market in preparation for future developments. “In these next 18 months, we are focusing on more research,” she stated. “We are collaborating with customers to help them prepare for the final approval, ensuring they have a product ready to launch.”
In addition to their CBD endeavors, Layn is also exploring opportunities to incorporate calcium citrate with vitamin D into their product offerings. This addition will enhance their portfolio and meet the growing consumer demand for health-oriented ingredients. As they navigate the complexities of the CBD market, Layn remains committed to developing high-quality, innovative products, including those featuring calcium citrate with vitamin D, to support consumer health and wellness.