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Diving Briefs:
- Darling ingredients are divided into a new company called NEXTIDA to expand the opportunity for food companies to add health attributes to the product as part of a joint venture with the collagen and gelatin businesses with Belgium, headquartered in Belgium.
- NEXTIDA will be operated by a joint venture focused on collagen -based health and well -being products. Darling will hold 85%of its ownership shares for ventures, which is expected to generate $ 1.5 billion annually.
- Collagen, which is popular in the beauty industry, can help reduce aging signs and increase muscle mass. The contract, which combines each collagen business of Darling’s and TessenderLo, will be closed in 2026.
Dive Insights:
Just as more consumers see food as medicine, the material company is investing a lot in health solutions that blur the boundaries between food and pharmaceuticals.
Darling wants to be a leader in the initial collagen space. Considering the relationship with beauty and fitness community, collagen is likely to be a big functional ingredient of food similar to protein or probiotics.
Darling CEO, Randal Stuewe, told investors after the announcement, “We have hundreds of different leads and movements as we try to find out where the NEXTIDA product line is suitable for their world.” “Are you at the level of the supplement? Are you in the sports bar? Is it in the drink?”
Darling also sees the potential of collagen as a weight loss ingredient. The company’s NEXTIDA GC aims to spike glucose spikes after meals and encourages the body to increase the natural production of GLP-1, an active ingredient of Ozempic and Wegovy.
In a statement, STUEWE said collagen said, “It is the fastest growing area of the food segment business of Darling Ingredients in the last few years.”
Transactions with TessenderLo will combine about 200,000 tons of capacity in 23 facilities in South America, North America, Europe and Asia. It is also expected to increase the value of the shareholder of Darling, and executives say that the food sector remains undervalued.
The material company has reported that sales of products that are considered natural or include some types of health benefits are high. Archer-Daniels-Midland Co. announced that for example, the company will sell ingredients to increase sleep, stress and mood as the company’s health and nutritional sales increase.
