Kemin expands hemp-based ingredients with investment in Driftless Extracts
20 Jan 2022 --- Ingredient manufacturer Kemin Industries is investing in US-based hemp producer Driftless Extracts and has entered into a hemp-based product supply agreement.
The collaboration will allow Kemin to expand its current portfolio of hemp-based ingredients with the addition of Driftless Extracts’ full-spectrum hemp ingredients for the global health and wellness market.
“The investment in Driftless will provide resources for upgrading the facilities and increasing the production capacity. Kemin is the largest single investor in Driftless and will hold a board position,” Jose Piccolotto, president of human nutrition & health division at Kemin tells NutritionInsight.
Financial details of the investment were not disclosed.
However, the investment deal comes at a time when the US retail hemp-cannabidiol (CBD) market is valued at USD$803 million, with growth expected to reach USD$1.2 billion in 2023.
“With the signing of this partnership, Kemin will get exclusive access to sell Driftless USDA Organic Hemp Products into the health and wellness market,” continues Piccolotto. “With the increasing demand for hemp-based products combined with the increasing science into this market, Kemin wants to help lead the growth of hemp in the marketplace.”
Driftless Extracts “revitalizes” agriculture
Driftless Extracts, with its arrangement with Kemin, will be able to revitalize agriculture with hemp as a centerpiece to a renewable future.
The company operates from a LEED-certified Gold facility in Wisconsin, US. Driftless Extracts aims to establish a renewable materials industry within the US-based Great Lakes manufacturing sector that marries natural hemp materials and manufacturing.
The two companies will accelerate innovation and sustainability with organic, hemp-based solutions through the partnership.
Driftless Extracts is working with local farmers to create a sustainable natural materials market for large-scale agricultural hemp production.
“We look forward to collaborating with Kemin to further lead and advance the science, production and supply of hemp-based cannabinoids throughout the world,” says Ed Liegel, CEO, Driftless Extracts.
Through its investment, Kemin will expand its plant-based offerings for the health and wellness industry, as well as support existing companies operating in the sleep and wellness markets.
“Kemin recently announced our commitment to achieving net-zero greenhouse gas emissions by 2050, and we appreciate the alignment working with Driftless Extracts brings to this important ambition, adds Dr. Chris Nelson, president and CEO, Kemin Industries.
Driftless Extracts has seen growth in recent years with increasing awareness and demand from consumers and businesses for hemp-based solutions.
Kemin’s equity stake in Driftless Extracts brings the global company’s quality reputation and customer and industry expertise to the hemp producer and processor’s cultivation experience and portfolio of organic hemp-based ingredients.
Kemin’s general wellness moves
Kemin launched CBD Calm-branded medical cannabis products in Brazil in partnership with CBD Vida, a medical cannabis products provider.
A previous study revealed Kemin Human Nutrition and Health’s DailyZz ingredient may improve sleep quality and daytime functioning in healthy individuals with occasional sleep complaints.
Relatedly, Kemin’s Neumentix, a spearmint ingredient, was approved by Health Canada. The ingredient can be used to support cognitive function and memory.
By Nicole Kerr
