Tate & Lyle acquires Swedish oat extract producer

UK-based sugar giant Tate & Lyle has acquired Biovelop, a company that produces oat beta glucan, which is marketed as a natural ingredient called Avenacare to the cosmetics industry.

“We are delighted to welcome the Biovelop business and its employees to Tate & Lyle,” Olivier Rigaud, President, Speciality Food Ingredients for Tate & Lyle said.

“The addition of Biovelop’s soluble oat beta glucan, supported by strong scientific health claims, represents an excellent addition to Tate & Lyle’s existing fibres and health and wellness portfolios.”

Serving to help Tate & Lyle expand into health and wellness

The acquisition should serve to broaden Tate & Lyle’s portfolio as it continues in its efforts to diversify beyond its mainstay sugar business, into high value growth areas in the health and wellness category.

The ingredient is a specially developed form of oat beta glucen, which is extracted using a patented technology to provide soothing and moisturising properties for a variety of natural-based personal care, hair care and skin care products.

The oats used for the ingredients are said to be of non-GMO origin, while the extraction process is chemical-free and environmentally-friendly.

Providing additional hair and scalp functions

While it can serve to reduce redness in certain skin conditions, it has also been clinically proven to improve the tensile strength of hair, while also providing moisturising properties for dry and itchy scalp conditions.

The company also markets the ingredient under the name PromOat, targeting the food, beverage and supplements market. It also markets a range of a range of other oat-based products to various categories in the food and beverage industry.

Biovelop is still considered to be an early stage business as it was established in 2005 and he first sale was not made until 2010, but it is expected that the new ownership will bring a significant funding injection that will allow it to expand significantly.