Layn expands business with functional botanicals segment, continues to eye CBD, hemp growth

25 Sep 2019 --- Plant-based sweeteners and natural extracts provider Layn Corp has announced the restructuring of its business into four segments, including Plantæ, its new functional botanicals division. The new structure also includes Plant-based sweeteners, TruGro animal nutrition and CBD & hemp extracts. Layn’s segment restructure comes as consumer interest in botanicals is rising and sugar reduction has become a major industry driver. In addition, the cannabidiol (CBD) space is prolific with innovative NPD, despite regulatory hurdles in many markets.

“The new business segments will help strengthen our portfolio and better serve our customers in a wide range of unique industries, including food, beverage, flavor, fragrance, sports nutrition, nutraceutical and animal nutrition,” says Elaine Yu, President of Layn USA.

“Botanical natural extracts speak to the trend of Natural, Clean label, healthy diet and plant based diet. It’s not only being natural, but also functional,” Yu tells NutritionInsight.

The new Plantæ functional botanicals business unit includes three subcategories, each with a specific focus.

• Plantæ antioxidant: Two innovative lines of natural antioxidants targeting both personal health applications and the preservation of flavors and shelf life in food and beverage products.
• Plantæ performance: A sports nutrition line offering plant-based solutions across key categories including weight management, natural energy, sports recovery, healthy aging, and improved cognitive function.
• Plantæ sense: Layn’s flavor modulation technology that addresses today’s prominent consumer demands for sugar and salt reduction. These products can enhance sweetness, effectively mask bitterness and increase salt, sour or umami flavors.

In the TruGro animal nutrition segment, the company is rolling out a line of botanical extracts including polyphenol-rich extracts, citrus bioflavonoids, natural sweeteners and other natural extracts to support key areas of animal nutrition such as palatability, natural antioxidation, gut health and AGP replacement.

Layn’s CBD & hemp extracts division leverages Layn’s significant investment in the research and production of CBD and hemp extracts.With long-standing expertise in sweeteners, Layn’s Plant-Based Sweeteners division includes an advanced and innovative ingredient portfolio of natural, clean-tasting sweetener solutions for all sugar reduction needs. It includes Stevia, Monk Fruit, Sweet Blackberry Leaf and Neohesperidin dihydrochalcone (NHDC).

“Layn has long-term commitments and investments in the innovation of the plant-based sweetener industry. We are at the forefront of commercializing new glycosides and mogrosides, improving our cultivation programs, reviewing different processing methods of our plant-based sweeteners and developing new sweetener platforms that improve upon what is currently available in the market,” Shaun Richmond, Global Vice President of Sweeteners at Layn, tells NutritionInsight.

CBD & Hemp Extracts
Layn’s CBD & hemp extracts division leverages Layn’s significant investment in the research and production of CBD and hemp extracts, offering full and broad spectrum oils and powders and a water-soluble CBD for a broad range of applications.

Earlier this year, the company invested US$60 million in a new, US-based cannabidiol (CBD) manufacturing facility, expected to be completed in autumn of 2020. The new facility is expected to have the capacity to process a minimum benchmark of 5,000 tons of hemp biomass per year, which will yield 160 tons of high purity CBD and 290 tons of full-spectrum oil annually. The company also debuted a new line of CBD ingredients at IFT19 Food Expo in New Orleans, US.

Despite the legal gray area concerning CBD products, the entrance of an ingredient supplier such as Layn into the arena suggests a true mainstreaming.

“We chose to invest in the CBD industry because it is a trending hot topic,” Yu told our sister website FoodIngredientsFirst on the floor of IFT19. “Even though this market seems crowded, not very many of these players come from this industry – many are ‘outsiders’ like farmers or extraction equipment manufacturers. From Layn’s perspective as an ingredients manufacturer, we are utilizing our 20+ years of experience and expertise in extraction, agriculture management, sustainable supply chains and understanding food safety requirements.” 

“We are investing in all kinds of formulation focusing on functions of antioxidant, taste modifying and sports nutrition. It will be largely used in food, beverage, nutraceutical, personal care products," Yu adds.

The restructure differentiates the company’s divisions who can now address the demands of its customers in an even more straightforward manner. With CBD, sugar reduction and botanicals only rising in trend-status, the new divisions could prove a successful move for the company.

By Kristiana Lalou