Gelita expands into halal gelatin with SelJel majority stake acquisition

02 Dec 2020 --- Gelita has acquired the majority stake in SelJel, a Turkish gelatin producer. This joint venture will strengthen Gelita’s global reach and expand its halal gelatin offerings despite COVID-19 headwinds.

Gelita now owns 65 percent of the shares and SelJel the remaining 35 percent.

“The acquisition improves Gelita’s ability to participate in the growing demand for halal gelatine, especially in the Islamic and Asian countries,” Dr. Franz Josef Konert, CEO of Gelita, tells NutritionInsight.

“This will further boost Gelita’s strong global network, with a total of 23 locations worldwide, and SelJel will profit from Gelita’s global presence.”

Konert says the company is not disclosing financial details.

Halal appeal and COVID-19 impact
With approximately 6,500 metric tons of edible, pharmaceutical and technical gelatine, SelJel is the first Turkish producer to supply both  the national markets, the company says.

The move helps Gelita respond to the growing demand for halal gelatin.The joint venture is part of Gelita’s growth strategy to meet the increasing demand for gelatin, and in particular for halal bovine gelatin. 

“The gelatin market is constantly growing over the past years. Especially the gelatin capsules, the confectionery and the fortified gummi markets are showing nice developments,” Konert says.

“This is not only with the traditional products but also reflected in NPD containing gelatin. However, COVID-19 has definitely temporarily impacted the markets. And this goes both ways, reduction and growth.”

He explains that Gelita’s customers in the food segment are affected by the shutdowns of many points of sales or reduced consumer traffic, which is impacting impulse purchasing. In addition, the product offerings for all food supplies to the HoReCa (Hotels, Restaurants, Catering) have taken a hit and are suffering, he says.

“On the other hand, there is a high demand for products supporting health and immunity, which are often coming in capsules. Of course, it is impossible to predict how long the pandemic will last, if the vaccination brings the desired results and at what time life will go back to “normal.”

Integration of SelJel
SelJel employs around 220 people and produces edible, pharmaceutical and technical gelatin, all with halal status. 

In the coming weeks, Gelita will work on the swift integration of SelJel into the group to leverage the resulting synergies to the fullest. The founding family of SelJel, Tezman, will continue to manage the company, Gelita says.

Speaking about future expansion plans, Konert says that Gelita is “constantly looking out for growth and acquisition opportunities.”

“Of course, we cannot disclose the current status,” he concludes.

Gelita recently showcased Verisol bioactive collagen peptides at Vitafoods Virtual Expo 2020 earlier this year. These have a patented peptide profile, specifically optimized to support beauty-from-within. They can stimulate skin metabolism and counteract the loss of collagenous extracellular matrix from the inside.

By Kristiana Lalou