Mantrose last week announced it had bought Illinois-based Holton Food, which makes specialized egg white blends for bakery products including ready-to-eat pies, cakes and cookies. Mantrose produces edible coatings and ingredients to extend the shelf life of foods, but its sales to the baking industry have so far been limited.
The market for prepared foods using the types of ingredients Holton produces would continue to grow, Mintel food and drink category manager Mimi Bonnett told BakeryAndSnacks.
She suggested the acquisition of Holton would better prepare Mantrose to tap into the prepared cakes and pies category, currently worth $11.2bn and tipped by Mintel to increase 18% between 2014 and 2019.
Demand for convenience
In-store bakeries are also expected to continue to grow, she added.
“The in-store bakery dessert segment remained the category leader in 2015, a position it is expected to retain through 2020,” Bonnett said. “Growth is expected to be driven by consumer demand for convenience, increasing disposable income, and innovation in baked items, including healthier indulgences and more convenient options for breakfast consumption.”
Holton president Ross Holton said he believes the research activities and ingredients of both his business and Mantrose were aligned with current trends and challenges.
“Significant consumer trends continue for natural and good-for-you products, gluten free items, cleaner labels, non-GMO, organic, trans free, lower sugar and sodium, no artificial colors, flavors and preservatives,” he said.
Collaboration on R&D
Mantrose stated the deal would enable both companies to offer additional products to their customers, with their R&D teams collaborating on new products.
“We will be introducing more of Mantrose’s technology into the baking industry to help solve other issues this industry faces,” Mantrose marketing director Karen Murphy told BakeryAndSnacks.
Being part of Mantrose would provide Holton with access to additional capital to expand, said Mantrose president William Barrie, adding that access to a larger sales force would help Holton expand distribution of its products in the US and Europe.