Touching 3.8 Billion
It’s been nearly 20 years since I first announced our vision to improve the quality of life for half the world’s population with Kemin products and services. Back in 1998, we were reaching less than 300 million lives daily, but we knew with hard work and dedication we could positively impact 3.8 billion lives by 2018. And, here we are in late 2017, one year ahead of schedule, proudly demonstrating our strength in numbers, because we did it!
By relentlessly pursuing solutions at the molecular level, more than 2,500 Kemin employees around the world are enhancing the health and nutrition of humans and animals, creating economic viability and improving the quantity, quality and availability of food.
In 2017, we grew our global footprint by opening manufacturing and laboratory facilities in Russia, acquired unique beta-glucan manufacturing technology, opened our worldwide headquarters and broke ground for a new research and development facility in China. And, as we continue down our path of discovery, our abilities in science, innovation, creativity and leadership know no bounds.
There’s plenty more to do. But with the strength and influence of all our employees, partners and customers, I am confident that we will continue to make a difference and improve the world.
The final phase of the new $125.5 million Kemin worldwide headquarters in Des Moines, Iowa, was completed in 2017. The 94,000-square-foot facility houses work spaces, laboratories, collaboration areas and a fitness center.
The expanded headquarters also houses manufacturing and research facilities, and can accommodate a growing workforce.
President and CEO Dr. Chris Nelson hailed the headquarters for its embodiment of the Kemin customer-centric mindset – one that brings innovative technology to the campus, and allows for increased collaboration, productivity and communication among employees.
Animal Nutrition & Health
Precision nutrition: it’s a phrase that, although not new to Kemin, is beco-ming more relevant for our business as more farmers, grocers and restaurants respond to consumers preferences. As a growing population becomes more cautious of foodborne pathogens and contaminants, the ability to precisely deliver the nutrients animals need has Kemin constantly searching for new and better solutions for our customers.
Two products recently introduced by Kemin Animal Nutrition and Health are showing extreme promise: COZANTE,TM an anticoccidial protein booster, and Aleta,TM a highly digestible natural algae product that provides a consistent response in situations of disease and stress, especially those typically addressed with antibiotics. Both products add to the Kemin suite of antibiotic alternatives.
In 2017, Kemin realized strong global growth of KemTRACE® Chromium sales due to the FDA approval for broilers and the CFIA approval for swine and dairy cattle. This essential nutrient plays a significant role in the health and performance of animals.
We continue to expand our global leadership in feed mill product application with our MillSMARTTM program. Kemin customers have realized productivity, profitability and improved feed quality through our state-of-the-art feed mill technology.
PET FOOD &
For decades, Kemin has worked with the world’s leading pet food manufacturers, renderers and ingredient suppliers to address evolving consumer needs. In 2017, our scientists, application engineers and technical service team members continued to support our partners’ successes with a complete solutions portfolio that combines products for stability, safety, palatability, and health and nutrition with our industry-leading product testing and application services.
Also in 2017, as consumers embraced pet ownership in high numbers, their preferences and expectations for healthier and higher – quality pet foods grew. With a majority of pet owners now believing that the right food can enhance their pets’ quality of life, the expansion of pet food premiumization – the demand for natural ingredients, “clean” labels and pet health benefits – was a major driver for our global business.
To help our customers meet growing consumer demand for premium pet foods in 2017, Kemin launched ALLINSUR TM M, a natural product that addresses oxidation and microbial contamination in raw ingredients that are used in pet food. Raw meat inclusion in pet food is a growing trend globally, and our innovative ALLINSUR M product helps to ensure quality, safety, freshness and shelf life.
Designed to control microbial decay that can lead to biogenic amine formation, ALLINSUR M offers distinct benefits that work together to support pet food stability and palatability. Kemin is already planning ALLINSUR M production trials with pet food manufacturers in North America and Europe that may support impressive sales projections for 2018 and beyond.
In March 2017, Kemin Pet Food and Rendering launched a new visual identity and communications strategy to highlight our innovative product range, industry– leading technical expertise and unparalleled commitment to pet food manufacturers, renderers and ingredient suppliers worldwide.
With vision, cognition and active wellness all under the Kemin umbrella, and with more innovative uses for our science being discovered every year, our multi-front campaign for improving human health around the world shows no signs of slowing.
In 2017, Kemin Human Nutrition and Health saw key developments for existing products and added two new products to the lineup. Two more innovative products using algal extract technology, BetaViaTM Pure and BetaViaTM Complete, were announced in September 2017 as our newest entries into the dietary supplements field.
The BetaVia products support the immune system by providing a valuable source of beta-glucans, which help prime key immune cells. A new research program was launched in conjunction with product development to determine further uses and benefits of this superfood. Kemin is leveraging international sales channels to establish the product in the food, beverage and health supplement markets.
A third human clinical trial on NeumentixTM, a polyphenol-rich spearmint extract used to support cognitive health, was completed in 2017. This trial supports the product’s use as an athletic performance ingredient, placing the emerging sports nootropics market within sight. Neumentix Phenolic Complex K110-42 has now attained the GRAS (Generally Recognized as Safe) designation.
Also significant for Kemin in 2017 was the continued success of FloraGLO® Lutein, which continues to be the most-researched and most- recommended lutein brand available. Ongoing research by Kemin is fo-cusing on FloraGLO as a protectant against harmful overexposure to blue light, which is typically emitted by digital devices such as televisions and smart phones. As Kemin works with optometrists and ophthalmologists to educate on the dangers of blue light, FloraGLO’s market position – and the company’s – is expected to continue rising.
Examine the label of almost any item on the shelf at your local grocery store and you’ll likely see a number of complex-sounding chemical compounds, everything from preservatives to favor enhancers to emulsifers to dyes and more. Globally, more consumers are preferring naturally sourced ingredients or “clean” labels, which can help sway even the pickiest shoppers.
As demand increases for more transparency and “cleaner” labels, it is important to consider how even the slightest reformulation could impact a brand’s reputation. Removing ingredients such as TBHQ, BHT, BHA – even PHOs – can significantly impact the sensory attributes and shelf life of products. Kemin offers a variety of effective solutions from process and packaging to functional ingredients, providing protection to value and premium brands around the world.
In 2017, our traceable supply chains for plant-based ingredients continued to build trust in our food technology portfolio. Kemin launched a new domestically grown, certified organic rosemary extract to meet the increasing demand for organic products. Our organic rosemary line is available in liquid and dry forms with a variety of concentrations. The new organic product is a great addition to our shelf life extension portfolio, which includes organic buffered vinegar, allowing Kemin to serve the industry’s organic food safety and antioxidant needs.
Kemin, recognizing the global momentum this movement is gaining year after year, is investing more in our line of plant extract- based ingredients. As Kemin – and the market at large – move away from traditionally used, but less-than-desired chemical additives, and into sustainable, plant-based alternatives, we see a significant opportunity in years to come for Kemin Food Technologies.
Kemin Crop Technologies continued in 2017 to develop effective and innovative products for use in commercial horticulture operations, with an increased focus on research and development for crop health and protection.
Leveraging last year’s successful launch of TetraCURBTM Concentrate, a rosemary-based botanical treatment used for fighting spider mite infestations, Kemin has experienced an increased market presence with commercial fruit and vegetable growers, due in part to the strong efficacy, word-of-mouth and resulting brand awareness for this important piece of our Crop Technologies portfolio. With the emergence of TetraCURB as a legacy product, Kemin has parlayed clients’ successes into our own, opening new paths to a variety of exciting business opportunities.
One such opportunity is Valena,TM an algae-based nutritional supplement developed in 2017 for use with produce and other valuable specialty crops. An extract of a proprietary Euglena gracilis algae strain grown in-house by scientists at Kemin labs, Valena is a carbohydrate- and protein-rich granular product applied to growing media as a top-layer treatment or additive. In testing, adding just one treatment of Valena to soil prior to irrigation showed a variety of benefits, with greenhouse plants exhibiting an increase in nutrient uptake, that enhanced plant growth and shoot elongation – indicating its potential as a powerful plant health ingredient for horticulturists.
As Kemin Crop Technologies takes on an increased presence at key industry events, sponsors more student growers and maintains industry association memberships, our unique products, combined with our ability to lead, are defining our role as specialty crop growers and problem solvers with relevant, profitable solutions.
As demand for healthier foods, feed and ingredients increases, Kemin stays at the forefront of the world’s nutritional needs by investing in exciting new science and opportunities. Rapid evolution characterizes today’s food, feed and health markets, with competition and demand requiring innovation cycles of three to five years instead of the 10-plus-year turnarounds of the past. In 2017, we made several notable leaps forward in our ability to provide customers around the world with innovative, scientific solutions for their problems.
Kemin Invests in Algae Innovation
The acquisition of Algal Scientific in Plymouth, Michigan, marked our entry into the world of algae innovation. Algae is an excellent source of beta-glucans, a versatile all-natural ingredient with uses in antibiotic replacement and nutrition. Using a proprietary strain of Euglena gracilis developed by Algal Scientific, Kemin is harvesting the immune-supporting beta-glucans for use in the animal feed and dietary supplement markets.
The acquisition yielded four new products in 2017: Aleta,TM Valena,TM Beta-VitaTM Pure and BetaVitaTM Complete.
Kemin Breaks Ground on China Research Facility
A new research and development facility housing four Kemin business units will be located in Zhuhai, Guangdong. The 46,000-square-foot building will house general labs, a microbiology lab, sensory lab, cell culture lab, quality control lab, pilot control labs, incubator rooms and a test kitchen. The building is an estimated USD $10.2 million investment for the China Kemin office.
New Manufacturing and Lab Facilities Open in Russia
Located in the Special Economic Zone of Lipetsk, Russia, our newly constructed manufacturing and lab facilities will provide a variety of ingredients to the growing Russian livestock industry. Russia owns one of Europe’s largest animal feed markets, providing Kemin with a significant opportunity to expand our footprint and better serve customers in the region with several key products. The facilities are an important piece of our five-year plan for global expansion.
At Kemin, every day marks a renewed commitment to creating a sustainable future for our employees, customers and communities around the world. We are more focused than ever before on increasing sustainability as part of our long-term, global plan. We believe sustainability means enhancing lives while reducing our environmental impact. In 2017, Kemin formed new partnerships, dedicated more resources and donated more time to causes that move our vision forward and help us be a stronger global citizen.
Kemin Renews Partnership with World Food Programme
Each year, the World Food Programme provides emergency meals and nutritional services for more than 80 million people across 80 countries, relying on Kemin to assist with nutrition optimization and food stabilization. The renewal of the Kemin corporate partnership with the World Food Programme in January of 2017 continues more than a decade of collaboration in evolving global food quality and safety strategies.
Kemin Conducts Consumer Grocery Shopping Study
In light of emerging national and global trends indicating a shift in consumer preferences to “clean” labels, Kemin partnered with Harris Poll to conduct a national survey with the aim of better understanding consumer behaviors and market trends impacting purchasing decisions at the grocery store. The results offered important insights that can help inform our shelf-life extension and food safety efforts. For instance, 70 percent of shoppers prefer to have natural flavors included on the label, while 26 percent of shoppers avoid products that include the word “preservative” on the label. In such a competitive retail space, our effort to understand the decision process leading to a purchase will provide new value to our sales teams, and to manufacturers and retailers further down the supply chain.
World Egg Day
When a study by UNICEF and National Family Health Survey determined that in India, 46 percent of preschool children and 30 percent of adults suffer from protein calorie malnutrition, Kemin knew it could make a difference. To counteract this staggering number and raise awareness of the importance of egg protein in Indian diets, Kemin Animal Nutrition – South Asia led several partners in celebrating World Egg Day 2017. This concentrated effort brought Kemin together with egg hatcheries, schools, hospitals and national trade associations in Chennai, India. Our efforts included educational roadshows, egg giveaways, a custom video project, children’s educational activities and a benefit concert, all intended to promote eggs as an affordable, high-quality source of protein.
We are a global company inspired to improve the quality of life.
WORLDWIDE BOARD OF ADVISORS
Dr. David Brautigan
Dr. Tay Choon Nghee
Ms. Lim Lay Hong
Mr. Richard Hoon
Mr. Steve Newman
Mr. Daniel Ng Prof. Narayan Pant
Dr. Anning Wei George Zhang
Louis De Lassence