09 May 2016 --- The Sunar Group is eyeing major potential for sorbitol and maltitol as consumers look for lower calorie and healthier foods.
Despite a wave of recent political headlines coming out of the country, Turkey’s economic growth is undeniable. Structural reforms, hastened by the country’s EU accession process, have paved the way for comprehensive changes in a number of areas. As these reforms have strengthened the macroeconomic fundamentals of the country, government statistics reveal that the Turkish economy grew with an average annual real GDP growth rate of 4.7 percent from 2002-2014. Turkey is expected to be one of the fastest growing economies of the OECD members during 2014-2016, with an annual average growth rate of 3.6 percent, according to OECD data. One company that is thriving in the current environment, is the Sunar Group (turnover: US$400 million), which is based in the country’s Adana region, the biggest piece of flat, fertile land in Turkey, and close to the main port for the Eastern Mediterranean region’s industry and agriculture. The Group currently sells 164,000 tons/year of exports to more than 100 countries, with more than US$150 million in export value. It holds a current share of 43% of Turkey’s corn oil exports, 6% of its’ sunflower oil exports and 27% of its’ glucose exports.
Most impressive is the group’s 58% share of Turkey’s starch exports, via the Sunar Misir division, which accounts for 330 of the group’s 824 employees. The fiveyear goal for Sunar Misir is to continue to pursue an export-oriented growth strategy, with a 50% share of the Turkish sorbitol market and a 60% share of the maltitol market. These targets come on the back of significant investment into the production of these ingredients in recent years. Sunar Misir started production at the first and only sorbitol plant in Turkey (2013), and followed this with the first and only maltitol plant in the country in 2015.
Founded in 1985, Sunar Misir, produces native starch, modified starch, dextrin, glucose, isoglucose, sorbitol, maltitol, corn gluten meal, corn gluten feed and corn germ, all solely produced from certified non-GMO corn. Hüseyin Nuri Çomu, Board Chairman, noted that this division of the group invested €40 million in 5 years. As a policy to strengthen the impacts and return of these investments, the company hired highly talented employees and reinforced it’s R&D capability. Sunar Misir supplies its energy from a high-tech cogeneration plant, based in the premises of Sunar Misir production area. “We plan to invest €45 million in Sunar Misir in 5 years time until 2020, focusing on high-value added/innovative products like food modified starch, construction chemicals, starch based bioplastics and some niche products,” Çomu explains.
Sunar Misir is eyeing major potential for the sorbitol and maltitol market as consumers look for lower calorie and healthier foods. The ingredients can only be produced by a few companies around the world and these polyols are strong candidates to be a star in the future with their low calorie, low glycemic index, replacement of sugar, no “after-taste,” toothfriendly, high-heat resistant, stability booster features.
But the Sunar Group is also strong in edible vegetable oils, with the Elita Gida company founded in 2006. Çomu notes how the growing consumer awareness of what is in their food is creating new opportunities for companies such as themselves. He points to research which found that eight out of ten consumers avoid at least one ingredient or additive in food. These “clean eaters” are those who avoid artificial ingredients, sweeteners and GMOs. “Compared with 10 years ago, consumers are now more interested in healthier, local and more ethically sourced/ supplied products,” he notes. “Especially in some parts of the world like China, Russia and Western Europe, there is a high portion of ‘clean eaters.’ The government policies are also of considerable influence, besides the consumer attitude. Some countries like the US, develop new policies to protect their citizens against obesity-based health problems,” he says.
For Çomu, simple ingredient lists [clean label], less processed foods and being more transparent [clear label] are those desires and concerns. Trans fats are another key issue, while the debate around saturated fat and unsaturated fat is now also in the spotlight. “In the past few years, articles have pointed out that saturated fats are not as unhealthy as studied in the previous decade; butter and other saturated fats are not the main reason for cardiovascular diseases. Omega 3 is another key trend that is popular more than ever and chia oil is one example,” he explains. He also notes how the nutrition conscious landscape is getting bigger every day and in the near future, it will be an issue on the agenda of most companies.
The nutritional content of edible oils is another issue at the top of consumer mindsets. “They are now more aware of the percentages of saturated/unsaturated fats, vitamins, omega acids, etc. in oil. Safflower oil has become popular in this regard in the last few years,” he notes. “There are many benefits to safflower oil like boosting the immune system, managing blood sugar level, improving appearance and quality of skin. High content of omega 6 fatty acids of which safflower is rich, helps human metabolism to burn fat in contrast to storing. At the moment, the safflower market is very small, but it has major potential to substitute some kinds of edible oils in the years to come,” Çomu adds.
He is eyeing the rising demand for GMfree corn oil products as another possible growth platform through differentiation on the market. “As the biggest corn oil exporter of Turkey, we have a strict policy to prevent any kind of GMO-based raw material. We have defined critical control points within the whole supply chain to ensure producing non-GMO products. We value our customers’ desires and their specific needs. In the years to come, I expect consumers to be more aware of the origin of products and then we will proudly serve them,” he says. Of course another industry challenge right now, which is impacting all the major oilseeds companies, is commodity price volatility. Çomu notes how inflation and the devaluation of local currencies are leading to a remarkable change in business and consumer habits in many nations. “Petrol prices and dollar value are the macro indicators on an oil market, which has a segmented structure. For instance, nowadays, the price of corn oil and palm oil is increasing,” he explained. Weather conditions also have a major impact on harvest, prices and supply. “For example, due to El Nino, palm oil stocks are suffering. Weather conditions, supply and demand in every segment of oil market are some of the micro indicators. On the other hand, now, sunflower oil and soy oil are stable,” he notes.
Since the oil market is a fluctuating one that is very sensitive, the development of a robust supply strategy, needs to be done, Çomu concludes. Current supply challenges are just one of the issues facing players from major emerging economies, who are looking to further their reach.
by Robin Wyers
Source: Food Ingredients First |
