Making waves in LATAM: Targeting niche platforms with mainstream potential

Two new Food Application & Development Centers for Latin America

It’s been a busy few months for Brenntag Food & Nutrition (F&N) in Latin America, as we further reinforce our position as the leading food ingredients distributor in the region.

In June, we opened our newest Food Application & Development Center (FADC) in Guarulhos, close to Sao Paulo in Brazil. This fifth FADC in the continent will particularly support F&N teams in Brazil and the South Cone in the following segments: beverages, bakery, dairy, chocolate & confectionary, sauces, meat, convenience food as well as functional food and food supplements. The FADC is equipped with all necessary state-of-the art equipment and special items such as a photostability and fermentation chamber, as well as a texturometer.

The investment news comes hot on the heels of the opening of our fourth FADC in Guatemala City. This facility supports our F&N teams particularly in Central America but also in the rest of Latin America in the beverage, dairy, confectionery and bakery segment. The two facilities support F&N’s existing network of laboratories in Mexico, which are currently being upgraded. Furthermore, they complement two FADC sites in Colombia, one of which was upgraded last year with a specific meat application laboratory.

All five facilities are equipped with specialized devices to find the right ingredients to support our customer needs. The FADCs allow our local teams to propose new alternative concepts, participate in customer innovation projects and develop new business. It’s about creating innovative formulations for them and presenting our capabilities and know-how to the market.

An eye on trends with potential

This global and regional approach is particularly valuable when it comes to exploring the potential for alternatives to the traditional food & nutrition products that have been consumed in LATAM markets for decades.

While the market for plant-based meats may currently be much less developed in LATAM markets than it is in North America or in Europe, there are clear opportunities across demographics. These products can meet the demands of older consumers looking to cut back on their fat and cholesterol intake. But they hold particular potential for a growing number of millennials and centennials who are switching away from meat, due to animal welfare and sustainability concerns. These younger consumers are looking for plant-based options that replicate the taste and texture of meat, but without the overuse of fat and starches. So far this is an untapped market.

“There is clear potential for plant-based alternative options in LATAM markets, but we are still in the very early stages of development when it comes to overcoming cost, health and quality concerns,” says Lina Espinosa Garcia, Commercial Director F&N for North LATAM. “Right now, there are several options available on the market, such as carrot and beet-based products that are expensive and very gummy and breakable in texture. These products don’t pretend to be like meat – they are vegan and are aimed at enhancing the flavour of vegetables,” she adds,