Natural flavor producer accelerates expansion amid race to remove artificial dyes

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Dive Brief:

• Natural ingredients supplier Custom Flavors is doubling its production capacity to capitalize on demand from food companies racing to reformulate their products and remove artificial dyes.
• The California-based firm on Tuesday broke ground on a processing facility in Concord, North Carolina, according to a release from construction firm AM King. The project is scheduled to be completed by November.
• The 53,000-square-foot facility triples innovation space and allows the company to better serve customers in the Midwest and East Coast, per the release.

Dive Insight:

As food companies face mounting pressure to move away from artificial colors and dyes, some ingredients suppliers are quickly expanding their manufacturing capabilities to meet an expected rush of demand.

With the FDA voluntarily asking the food industry to remove synthetic dyes before 2027, many major manufacturers have announced intentions to reformulate their products. However, some companies have expressed concern that a limited supply of natural dyes could make it difficult to make the transition in time.

This could create room for smaller ingredients players such as Custom Flavors to play a bigger role.

Alex Wendling, president of Custom Flavors, said in a statement the company accelerated the build-out of its planned East Coast facility to help meet the demands of its “fast-growing customers.”

Custom Flavors develops and manufactures liquid and powdered flavors for industries including bakery, beverage, confectionary and sports nutrition. The company has crafted more than 20,000 organic, natural and artificial flavors and flavor combinations, although it specializes in natural flavors, according to its website.

Other ingredients suppliers have reported growing interest in natural colors and ingredients, which has helped boost company sales. Flavor and seasonings giant McCormick has seen a “significant amount of step up in activity” around reformulation among food companies of all sizes, from emerging brands to CPG conglomerates, according to CEO and President Brendan Foley.