Ingredion promises gluten free and non-GMO rice flour through Sun Flour deal in Thailand

By Douglas Yu contact

- Last updated on GMT

Rice flour is gluten-free, non-GMO and hypo allergenic, says Ingredion ©iStock/tashka2000
Rice flour is gluten-free, non-GMO and hypo allergenic, says Ingredion ©iStock/tashka2000

Related tags: Wheat, Rice, Starch

Ingredients supplier Ingredion is waiting for Thai government approval to acquire domestic rice starch and rice flour Sun Flour. 

Ingredion anticipates the acquisition will complete by the end of the calendar year. No transaction fee was disclosed.

The Illinois-based ingredient company offers a wide range of functional flours, fibers, hydrocolloids, pulses, resistant starches, gluten-free and clean label starches for bakery and snack industries. It serves clients from more than 100 countries around the world.

Expanding portfolio and geographic scope

Senior vice president and president of Ingredion’s Asia Pacific and EMEA branch, Jorgen Kokke, told BakeryandSnacks the acquisition is part of the company’s strategic plan to expand its portfolio and geographic scope.

The net sales from Ingredion’s Asia Pacific region were $733m last year, according to Kokke, representing represents 13% of the company’s total $5.6bn net sales in 2015.

“This acquisition enhances our global supply chain and leverages other capital investments we’ve made in Thailand to grow our specialty ingredients and service customers around the world,”​ he said.

Rice is an ‘on-trend’ ingredient

Rice flour is used widely in snacks, such as rice crackers in Japan and North Asia, and is also used in cereals and Asian noodles, said Kokke.

“Rice is an on-trend ingredient. It’s gluten-free, non-GMO and hypo allergenic​… Using rice flour allows the application of consumer friendly, non-GMO and gluten-free labels on many bakery and snack products. It also provides additional benefits as a bulking agent and texture modifier, which can provide body, elasticity, chewiness and crumb structure in a wide range of applications.”

Ingredion did not comment on what will happen to Sun Flour’s management team once the acquisition is completed. It said, “We cannot speak on behalf of Sun Flour.”

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