The deal, which is an extension of AB Enzymes’ existing commitment with Barentz, is expected to strengthen the ingredients company’s presence in Europe, as well as help it to expand into “new territories”.
AB Enzymes said that under the agreement the business processes of both companies will be integrated to “ensure a continuation of high service levels to the selected customers that will be handled by Barentz”.
An example of this “tight integration” is the use of a shared central warehouse, located in Frankfurt, Germany, which it said enabled both companies to “guarantee reliability of supply, while reducing complexity as well as cost of handling and storage”.
Barentz Europe is a privately owned raw material company active in distribution towards the food and other industries. It has previously boasted that it has strategy of being a "strong local supplier in every European market”.
This latest agreement comes within weeks of Barentz signing a deal with International Flavors & Fragrances to help extend IFFs customer base in the UK and Ireland.
Geert Ingelbert, VP food division of Barentz said: “The products supplied by AB Enzymes provide our customers with true solutions for the food industry that is looking for more cost effective and clean label solutions.
“These products are true specialties which fit completely in our offering of ingredients and additives.
“The excellent application know how of AB Enzymes is complemented by our own Centers of Excellence.”
AB Enzymes is part of the ABF Ingredients Group (a subsidiary of Associated British Foods) and reports revenue of over €60m.
It recently re-focused the marketing of its enzymes range to highlight how they could actually help reduce production costs.
However, this was dampened by the announcement in September that it will pass on some increased costs of raw materials, energy and overheads, upping the price of its baking, food and specialty enzymes by up to 10 per cent.
The value of enzymes is expected to rise by eight per cent each year to reach $1.2bn (€846.2m) by 2011, according to the recent World Enzymes report by The Freedonia Group.
European stronghold
In November Barentz announced the opening of its 18th European entity in Riga, Latvia, to serve the Baltic states Lithuania, Latvia and Estonia, demonstrating its commitment to grow in this region.
And last March Barentz and Ernst Sander launched a joint venture, called Barentz-Sander, to bring a bigger portfolio of ingredients to the Swiss market.
A month earlier it had announced the acquisition of a major stake in Vitablend Holding, which produces antioxidants, vitamin and mineral blends and nutraceuticals.
In 2007 Barentz also strengthened its bakery ingredients arm after buying Italian MDB Twello, which sold protein from sweet lupin beans as a soy alternative.
The Barentz Group turnover in 2008 was €544m.