LycoRed goes global with Sochim deal for Italy
its European presence through a series of strategic partnerships,
signing a deal with Sochim to sell its portfolio to the Italian
supplements market.
LycroRed marketing director Udi Alroy told NutraIngredients.com that whole LycoRed prefers to have its own sales force in priority markets such as the UK, France and Germany, it is now focusing on building a network of agents in Europe - be it for supplements, functional foods, or both sectors.
Alroy called this marketing 'glocalisation' - that is global localisation, taking into account the cultural and consumer preferences in a given market.
"Even in the US between the west coast and the east coast there is a different culture - even within the same company," he said.
As for the Italian market, it is "very competitive, looking for innovation and embracing scientific concepts" said Dr Barabar Pacchetti, science director at Sochim.
"In this respect, LycoRed's ingredients respond perfectly to this market demand."
The news of the Sochim deal follows a distribution with Eurochem Feinchemie drawn up in March, which takes the company to the next level in the high-potential German supplement market.
LycoRed had previously had its own, small presence in Germany, but given the potential offered by the German market, it judged that it needed a bigger machine to make the most of opportunities for its carotenoid brands and supplement, food and beverage fortification ingredients.
Alroy told NutraIngredients.com at the time, "the German supplements market is very competitive and requires a lot of innovation and new active ingredients."
He added that Germany is generally understood to be the largest dietary supplement market in Europe, with around half of all supplements sold in or via Germany.
As for Sochim, Alroy said that the relationship has its roots in LycoRed's acquisition of H Reisman in June 2006, since Sochim was H Reisman's representative in Italy for its carotenoid and antioxidant line.
Since then, the Israeli firm has been exploring an extended relationship with Sochim beyond H Reisman's carotenoid based product profile.
With the new deal the Italian company will be selling LycoRed's line of dietary supplement ingredients.
This includes microencapsulated and functional ingredients, alpha lipoeic acid, minerals, and ingredients with cross-interaction issues.
Alroy said that the decision to sign a formal agreement with Sochim was spurred largely by the company's adherence to quality and natural ingredients.
"We are convinced that Sochim does not just 'sell' ingredients, but offers value added solutions; an important asset to LycoRed's loyal customer base in Europe."
More LycroRed deals with 'glocal' European sellers are expected in the coming months.
