Danish biotech giant Novozymes has entered into a contract in the plant-based industry. The partner, a key player in the industry, has not yet been named. As part of the contract, it will invest 2 billion Danish kroner into a new state-of-the-art production line in Blair, Nebraska. This takes the company closer to reaching a strategic milestone in the implementation of its strategy with a significant entry into Advanced Protein Solutions, which builds on a portfolio of biotech solutions in the food and beverage areas.
The company is strengthening its commitment to serving the alternative protein market, marking an important milestone in Novozymes’ strategy, Better Business with Biology.
According to research, plant-based meat was the fastest-growing retail category in the US in 2020. Alternative proteins received $3.1 billion in investments in 2020, a new record and triple the amount a year prior. But the industry faces some challenges such as scale-up, speed to market, and regulation.
With the investment in Nebraska, Novozymes takes an important step forward in enabling sustainable nutrition for the world.
Novozymes’ investment will begin later this year and is projected to complete in 2023. The company expects to make at least DKK 1 billion in sales in the area of Advanced Protein Solutions within five years of starting production.
“At a time of accelerating demand across the protein space, Novozymes can unlock significant value by building on decades of experience with fermented catalytic proteins,” said Ester Baiget, President and CEO of Novozymes. “Being a biotech powerhouse allows us to produce high-quality, novel ingredients for our customers. We look forward to making a meaningful impact towards feeding the world sustainably.”
Baiget added, “Our growth is supported by continued execution on our strategic direction and today we reached yet another milestone by executing on our commitment to the strategic opportunity area Advanced Protein Solutions by investing DKK 2 billion in one of the fastest growing consumer segments of the food industry. Novozymes draws from decades of experience with fermented catalytic proteins and the investment marks our commitment to feed the world sustainably, showcasing the true power of biotechnology.”