Rising up: Angel Yeast expands production in China to meet demand for natural and nutritional flavouring

By Guan Yu Lim contact

- Last updated on GMT

Angel Dehong factory which has been established since 2011 ©Angel Yeast
Angel Dehong factory which has been established since 2011 ©Angel Yeast

Related tags: China, angel yeast, Yeast extract

Angel Yeast extract is building a new yeast extract production line at its Dehong site in Yunnan Province, China, to meet growing demand for natural and nutritional seasonings in the food industry.

The manufacturing site was established since 2011, producing 30,000 tonnes of dry yeast and 40,000 t tonnes of organic fertiliser annually.

With the new production line expected to be ready by December 2022, it will produce an additional 15,000 tonnes of yeast extract annually.

The RMB 434 million investment (US$71 million) comes on the back of growing demand for yeast extract globally. Angel’s yeast extract are used in the food industry, microbial nutrition as well as animal nutrition.

According to Eric Ao, general manager at Angel Yeast, European Division, yeast extract is paving the way of food seasonings that meet consumers demands for cleaner, healthier yet tasty foods.

The attitude of consumers awareness towards food safety, salt reduction, sugar reduction, and clean label continues to grow and contributes to the rapid development of yeast extract​.

Yeast extract has a unique taste, and with its natural and nutritional features, is expected to grow into a new generation of food seasoning​.”

Angel’s yeast extract has been used as a flavour enhancer in many foods and condiments including sauces, meat products, instant noodles, soy sauce, vinegar, pickles, biscuits, snacks, beverages and more.

According to Ao, Unilever and Nestle were just some of the brands using the firm’s yeast extract in their food products.

The company sees a big opportunity in yeast extract and is already working on another yeast extract project under construction in Binzhou, Shandong Province, China.

Yeast vs yeast extract

Yeast extract is a liquid, paste or powder as a product of yeast inactivation.

Ao explained: “Enzymes break down the proteins present in the yeast cells into smaller components and dissolve the surrounding cell wall so that the contents leave the cell,

“The remains of the cell wall are removed by separation. Yeast extract consists of proteins, amino acids, carbohydrates, vitamins and minerals from the yeast cell without the surrounding cell wall,

“The hydrolysis degree of yeast's own protein is strictly controlled in the production process to meet different application needs, and the yeast extract is finally concentrated into semi-paste, paste products, oil-packed, microcapsules and microparticles powdered products to suit different application needs​.”

Yeast extract is a more savoury ingredient that can enhance umami flavours in foods and improve mouthfeel.

Unlike yeast extract, yeast comes in dry granules, and is the most widely used biological leavening agent.

Business and supply chain

In 2020, Angel Yeast (Dehong) achieved an operating revenue of RMB 498 million (US$77 million) and a net profit of RMB 34.87 million (US$5.4 million).

This year, the operating revenue is expected to remain flat.

Angel Yeast is planning to register a wholly owned subsidiary in Singapore with a tentative capital of RMB 6.5 million (US$1 million). The subsidiary will be responsible for product sales, technology service, brand promotion, product research and development and help facilitate its growth in the Asia-Pacific region.

With the recent Suez Canal blockage, Angel Yeast said there was minimal impact on its business.

In 2019, Angel Yeast opened its first yeast extract factory in Egypt​, producing some 12,000 tons annually.

The congestion leads to the shortage of domestic and Egyptian containers and a small number of our customers' goods could not arrive in time,”​ Ao said. There was negligible impact on its sales.

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