Global health and nutrition company Royal DSM has agreed to increase its stake in China’s speciality food ingredient manufacturer Andre Pectin from 29% to 75%.

The remaining 25% continues to be held by the Shandong Andre Group, which supplies raw materials and utilities.

In 2013, DSM acquired a 29% stake in the speciality ingredient company. After settling a shareholders dispute, DSM agreed with other shareholders to acquire an additional 46% stake in Andre Pectin for around €150m.

Located in Yantai in the Chinese Shandong Province, Andre Pectin produces apple and citrus pectin, which is a hydrocolloid.

“DSM agreed with other shareholders to acquire an additional 46% stake in Andre Pectin for around €150m.”

Hydrocolloids are thickeners and stabilisers that provide a wide range of functionalities and physical attributes including gelling, texture, viscosity and suspension.

Demand for hydrocolloids is driven by the growing market for plant-based protein drinks, the trend towards clean labelling and consumer’s growing demand for convenient foods and beverages.

Along with DSM’s majority stakes in DSM Zhongken Biotechnology and DSM Rainbow (Inner Mongolia) Biotechnology, the company has a strong hydrocolloid product portfolio with gellum gum, xanthan gum, wellan gum and pectin-based solutions.

These solutions cater to the food, beverage and personal care markets. DSM intends to work with the Andre Group to improve operational performance and ensure reliable supply through its global sales network of natural pectin.

In November, Royal DSM introduced a culture called DelvoCheese CT-500 Castellano for creating Spanish Castellano-type cheese.

The company claimed that its culture has been specially developed to create the highly specific taste and texture of Castellano.