Among the functional and healthy ingredients DKSH provides to the food industry are beta glucans from barley, a natural fiber which reduces cholesterol levels.
In 2006, DKSH published an article on beta glucans from barley in a German food technology magazine. Subsequently, Korn, a well-known bakery chain, expressed its interest in using this ingredient in healthy new products like bread and rolls. At the beginning of 2008, the cholesterol-reducing bread and rolls were launched on the German market. Due to the satisfying sales and increasing consumer interest, Korn intended to extend its product range even further in this segment.
At around the same time, DKSH Italy was launching cookies containing cholesterol-reducing barley beta glucans. The potential synergies became visible. Hence, DKSH suggested this product to Korn. Though interested, Korn did not have the facilities to produce the cookie. Consequently DKSH proposed buying the final products in Italy from the Italian bakery Granello, which wasn’t present on the German market. Granello immediately showed an interest in joining forces.
By demonstrating industry insight and product knowledge, DKSH gained new customers in the food industry and expanded their business. The project culminated in a win-win situation for all parties: Korn extended its product range, Granello expanded its business into a new European market, and DKSH went from being a supplier of raw materials to also becoming a partner of finished food products.
Market Expansion Services at work: innovative solutions open up new markets
DKSH’s unmatched network and experience in the food industry led to clear synergies for its customers. In addition, DKSH’s ability to build up markets from scratch and create the right conditions for cross-selling created innovative solutions which open up new markets.