LycoRed strengthens US position with new plant

By Clarisse Douaud

- Last updated on GMT

Related tags Nutrition Photosynthesis

Israeli firm LycoRed has expanded its North American operations
with new US headquarters - the latest in a series of moves and
acquisitions for the ingredients manufacturer as it strengthens its
position this side of the Atlantic.

LycoRed's move to Orange, New Jersey is another link in its global chain following the acquisition of Nutriblend, Biodar and Buckton Scott Nutrition. The manufacturing facility belonged to supplier H.Reisman Corporation until LycoRed bought them out this year.

With plans to acquire more companies, it would seem LycoRed has its finger on the pulse of potential developments in the nutraceutical industry in order to target its ever-expanding portfolio.

The maker of naturally-sourced carotenoids and vitamin premixes predicts growth for this type of products in the future. "The natural trend is growing in the US,"​ LycoRed marketing director Udi Alroy told

The US - opting for less-expensive chemically sourced supplements or fortification - has not traditionally been drawn to so-called 'natural products' to the same extent as Europe, but this is slowly changing, according to Alroy.

Carotenoids are powerful antioxidants that have been linked to reducing a range of diseases from cancer, to cardiovascular disease, to diabetes. Studies have found carotenoids reduce oxidative stress in the body and aid immune system response.

And because carotenoids such as LycoRed's proprietary whole tomato extract Lyc-o-mato are increasingly used as natural food colorants, the supplier is prepared for further growth. The New Jersey facility will allow LycoRed a quicker response time for US carotenoid ingredient orders.

"We can provide a full line for all the natural carotenoids from A-Z,"​ said Alroy.

The company has invested "a few million"​ dollars into upgrading the facility, which specializes in manufacturing beadlets, triturations, carotenoid formulations and nutrient premixes.

LycoRed's beadlet technology is used to stabilize sensitive ingredients, such as carotenoids and vitamin D, protecting them from oxidation. Triturations provide uniform distribution of trace nutrients that have very low Recommended Daily Allowances.

"This has been a year of expansion for LycoRed, including multiple acquisitions and integration of the new products and technologies."​ said Leo Cullen, president of LycoRed's US business.

Over the course of the year, LycoRed's US operation has grown from office space in Fairfield, New Jersey to the new administrative, research and manufacturing facilities.

The manufacturing plant is FDA inspected, Good Manufacturing Practice compliant and supported by a complete analytical laboratory. The facility will also serve as the regional technical support and customer service center.

LycoRed has not made any specific acquisition announcements for the future, but the expansion will likely continue. "We are looking to acquire other companies,"​ said Alroy.

LycoRed already strengthened its position in the European premix market with the 2003 purchase of premix firm Nutriblend, who brought with it a host of large premix clients. The company also acquired Israeli microencapsulation specialist Biodar in 1998, and in 2005 paved the way for its US operations with the purchase of ingredients supplier Buckton Scott Nutrition.

Related topics Antioxidants/carotenoids

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