Food Ingredients

Feature:
New Developments in the Food Ingredients Business

Prinova, a company engaged in the sale and processing of U.S. food ingredients and which possesses a global network, was joined to the NAGASE Group in 2019, propelling NAGASE’s overseas expansion of the food ingredients business in a major way. A new Food Ingredients Department was launched in April 2020. We will pursue synergy between Group companies such as Nagase ChemteX Corporation, which has processed enzymes for food ingredients, and Hayashibara Co., Ltd., which became a subsidiary in 2012, and accelerate business development.

Ⅲ. Company Profile

HAYASHIBARA

Food Ingredients Business:
A Core Company that Holds the Next Key to Growth

Hayashibara Co., Ltd.

We will continue to work on inventive development of new materials using our well-honed biotechnology capabilities and increase our presence in the global market.

President and CEO

Naoki Yasuba

Hayashibara Co., Ltd., which became a member of the NAGASE Group in 2012, provides ingredients for food, cosmetics, pharmaceuticals, health foods, and functional dyes as a core business in the Group’s life sciences field.

Our core technologies are microorganism screening technology, substance production technology using microorganisms and enzymes, and technologies for discovering functions of materials. We will continue working hard to develop new materials while refining our core technologies. We produce unique functional carbohydrates using enzymes created by microorganisms. We then supply these carbohydrates as ingredients for foods, cosmetics, and pharmaceuticals in a wide range of markets in Japan and overseas, which has cemented our position as the world’s leading brand of functional carbohydrates.

There is growing awareness of social issues such as climate change and food shortages. Amidst this, we sensed rapidly increasing expectations and demands to solve social issues through business activities in research development, manufacturing and dealings with business partners in the fiscal year ended March 31, 2020.

We will seize the momentum of the post-coronavirus era and share in the NAGASE Group’s management philosophy of maintaining the highest standards of integrity. At the same time, we will continue working on research development and growth with “care” as our keyword to signify a compassionate and sustainable business.


Company Profile

Company Name: Hayashibara Co., Ltd.
URL:https://www.hayashibara.co.jp/data/en/
Headquarters: Okayama, Okayama Prefecture
Established:1932

Business Scale (fiscal year ended March 31, 2020)

Sales: ¥25.0 billion
Operating Income: ¥4.9 billion
Number of employees: 652

Manufacturing and development locations

Okayama Plant I, Okayama Plant II, Okayama Functional Saccharide Plant, Fujita Plant, Fujita Pharmaceutical Plant, Fujisaki Institute, L’Plaza (as of March 2020)

Food Ingredients Business

We uniquely develop, manufacture and sell food ingredients and health food ingredients with high added value.

Main product: TREHA™

TREHA™ is a low-sweetness food ingredient with a clean finish. It has a wide range of functions, including prevention of starch retrogradation, protein denaturation, and freshness keeping. Because it retains good flavor and texture for a long time, it is used in Japan and overseas in a wide range of fields, such as processed foods, beverages, and food services including restaurants, catering, and delis.

Cosmetic and Pharmaceutical Material Business

We develop and manufacture unique high-value-added cosmetic and pharmaceutical ingredients.

Main product: AA2G™

AA2G™ is produced by the enzymatic binding of glucose to vitamin C. This enzymatic conversion makes AA2G™ stable when incorporated into cosmetics. This maintains its activity and provides resistance to discoloration and odors. When applied to the skin, AA2G™ is degraded by a natural enzyme to release vitamin C, resulting in cosmetics that promote brighter healthier looking skin. It is used in Japan and around the world.

Functional Dye Business

We develop and manufacture a wide variety of functional dyes as an organic synthesis specialist.

Main product: Dyes for the life sciences

Some functional dyes are known for having medicinal and/or bioactive functions. In addition, some dyes are used as cell staining dyes and have fluorescent properties. We are developing new medical and pharmaceutical applications using these functions.

Prinova

Prinova’s Contribution to NAGASE Group

In August 2019, the NAGASE Group welcomed Prinova to its Group as a new step toward overseas expansion of the food ingredients business.

Impact on Business Portfolio

Through the acquisition of Prinova, Europe and the U.S. and Life & Healthcare segments will become more important within the NAGASE Group’s overall business portfolio.

Only five months of sales figures have been consolidated in the fiscal year ended March 31, 2020, so the numbers still appear small. However, the percentage of sales occupied by the Americas in particular is growing, followed by Europe, which will also become a significant contributor. In sales by business segment, the importance of the Life & Healthcare segment, a focus area, will also increase significantly.

The NAGASE Group has established the Life & Healthcare segment as one of the focus areas in its mid-term management plan ACE-2020. We view this recent acquisition as an incredibly important and effective move to extend the food ingredients business, which will serve as the core of the management plan, expand overseas sales and build a business foundation in Europe and the U.S.

Note: Five months of sales consolidated in FY2019
Prinova performs various operations from compounds to contract manufacturing. It also boasts a strong ability to develop flavors made by its flavorists.

Prinova

Using our ability to provide Accelerating group synergies in Europe, the U.S., and Asia

President

Donald K. Thorp

Prinova has a wide customer network throughout the food industry, and our value added services are key to the supply chain of our customers. Prinova’s core competency is its industry knowledge and market expertise. It can be ingredient sourcing, R&D for blends & flavors or experience and relationships in the sports nutrition segment. This helps differentiate Prinova from its competitors.

The greatest opportunity that Prinova can utilize NAGASE’s strength would be their global network. There are geographic locations that NAGASE is currently operating that can be leveraged by existing Prinova operations to create synergies and cost savings.

Additionally, NAGASE’s R&D network is also very impressive, we need to figure out how to use this expertise globally. Prinova has a very hard working and entrepreneurial culture that empowers employees to work effectively across different functional areas. We encourage our leaders to be proactive and to come up with ideas that lead to efficiencies and growth of our customers.

Overview of Prinova

Prinova is based in Chicago, and has approximately 1,000 employees. The company has a history of more than 40 years, having been founded in 1978.

Overview of Prinova Group LLC

Company Name: Prinova Group LLC
URL:https://www.prinovausa.com/
Headquarters: Illinois, USA
Founded: 1978

Business Scale (fiscal year ended December 31, 2019)

Sales: Approximately ¥82.0 billion
Operating Income: Approximately ¥4 billion
Number of Employees: Approximately 819


Factories

U.S. (4), U.K. (1), China (1)

Sales Locations

12 countries, including the U.S. and U.K.

Product Lines

Food ingredients (Vitamins, amino acids, etc.) Flavorings, premixes and contract work

Business

Sale of food ingredients and flavorings, manufacturing and processing of premixes, contracted manufacturing

Integrated Report 2020

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Integrated report 2020 Download All PagesPDF(5.9MB)

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  • Introduction(64KB)

  • NAGASE’s Value Proposition(1.4MB)

    Our Value | Identify | Develop | Expand | Driving Our Value

  • Message from Management(526KB)

    CEO Message | CFO Message

  • Story for Value Proposition(839KB)

    Story of the NAGASE Group’s Value Proposition | 1. Our Philosophy | 2. Our Business Model | 3. Our Roadmap for Growth | 4. Our Sustainability Management | 5. Our Destination

  • Management & Sustainability(505KB)

    Our Board | Interview with the Outside Directors | Corporate Governance | Compliance | Risk Management & Responsible Supply Chains | Creating Environmental Value | Innovation | Creating Social Value | Social Contribution Activities

  • Business Portfolio(1.1MB)

    Businesses | Functional Materials | Advanced Materials & Processing | Electronics | Mobility & Energy | Life & Healthcare | Regional Strategy

  • Data Section(1MB)

    11-Year Financial Highlights | Financial Information | Consolidated Subsidiaries, Affiliates and Offices | History of the NAGASE Group | Investor Information | Corporate Information