Dive Brief:
- Cargill has invested in Puris, a Minneapolis-based pea protein supplier that recently expanded into starches, fibers and carbohydrates made from peas, according to a company release. No financial details were disclosed.
- "Cargill’s financial backing and market reach will power significant expansion of our operation globally," Tyler Lorenzen, Puris President, said in a statement. "We will add substantial capacity, including a second plant, while maintaining our focus on U.S. production."
- A growing number of consumers are looking for great taste, simpler labels and alternative sources of protein to solve their personalized nutrition choices, the companies said. This has resulted in increased demand for pea protein because of its functional and nutritional attributes.
Dive Insight:
A growing number of U.S. and foreign food manufacturers are starting to invest in pea protein. French food ingredient maker Roquette announced a year ago that it was spending $303 million to build a pea protein manufacturing site in Canada. Snacks, nutrition bars, pasta, meat substitutes and sports nutrition products were named as potential applications.
While pea-based protein has been popular in Europe and elsewhere, the U.S. market has been relatively small until recently. Extracted from dried and ground yellow split peas, pea protein is now showing up in everything from smoothies and protein bars to meat alternatives and yogurt. General Mills uses the ingredient in its Larabar and Cascadian Farms brands, and Ripple Foods has centered its entire brand around pea-based milk, a product the company claims is tastier and more nutritious than other plant-based milks.
Pea protein also is a non-allergenic and environmentally friendly ingredient, especially when compared to other commonly used protein sources such as soy and whey. All of this adds up strong consumer interest and a booming market. According to Mintel, the number of new products containing pea protein grew by 195% from 2013 to 2016.
Cargill is among the companies positioning itself to take advantage of this growth. Campbell Soup's Bolthouse Farms has launched pea-based plant protein milks. Last year, Maple Leaf Foods also acquired Lightlife Foods, a plant-based protein food maker. According to Bloomberg, Ripple has sold 2.5 million bottles and generated $20 million in revenue since launching in April 2016, although the $5.99 price per quart is about $1 more than soy milk and nearly 30% higher than organic dairy milk.
While soy has been at the top of the plant-based protein list in terms of popularity, peas are catching up. And, unlike most soybeans, peas are non-GMO. Pea protein can also be processed in many of the same ways as soy, making it a versatile value-add. So it makes financial sense for Cargill to join the pea parade.