07/09/2021 | Ingredients

DSM to acquire US dairy flavours company First Choice Ingredients

Royal DSM is poised to acquire First Choice Ingredients, a key supplier of dairy-based savoury flavourings, for USD 453 m. The transaction is expected to close in Q4 2021. Hailed as a strategic fit, DSM says the acquisition is “highly attractive” and aligns with its strategy and growth plans, predominantly focused on nutrition.

Patrick Niels, President of DSM Food Specialties, says: “Combining our capabilities, our customers in F&B can look forward to a variety of solutions delivering taste, texture and nutrition solutions in applications such as soups, snacks, salad dressings and sauces, prepared meals, sweet baking, as well as dairy products and plant-based meat and dairy alternatives”.

First Choice Ingredients has built a leading position in the US taste market as a developer of clean label, fermented dairy and dairy-based savoury flavourings for taste and functional solutions across a wide range of applications. The company, headquartered in Wisconsin/USA, has three manufacturing facilities. It ferments and blends various natural dairy products with cultures and enzymes to create clean label taste solutions that integrate sensory and functional benefits. It collaborates with food producers, flavour houses and foodservice suppliers.

Patrick Niels explains: “DSM can further accelerate the growth of First Choice Ingredients by offering their products outside the US to DSM’s broad global customer base and integrating their solutions in DSM’s full offering for F&B customers. The acquisition gives First Choice Ingredients access to DSM’s world-leading biotechnology toolbox, fermentation know-how, and global customer relationships”.