Tate & Lyle launch £30m fund to find new ingredients



British sugar and artificial sweetener maker Tate & Lyle (Dusseldorf: 408414.DU - news) is to launch a £30m venture capital fund to help develop food science startups and develop new ingredients.

Tate & Lyle's new fund will launch in the New Year and invest in startups and smaller companies which are looking to expand that will work on new food ingredients. The company said that these new ingredients will be vital in the future as food producers look to make new, healthier products.

David Atkinson, who will lead the new fund, said: “We are continuing to see a real change in consumer attitudes towards health and nutrition and in particular the growing interest in functional foods.

"Busy lives, an ageing population and rapid urbanisation in emerging markets mean that consumers across the world are looking to food to offer lifestyle solutions and bring added benefits such as fortification and enrichment. New technologies will be instrumental in this convergence as the world’s major food companies increasingly reposition themselves with a focus on innovation and health.”

The company announced a 2pc rise to £179m in half-year profits this morning, which it said was stifled by the cost of re-opening sucralose plant in Alabama earlier this year and tough trading conditions in Europe (Chicago Options: ^REURUSD - news) . But Tate & Lyle said it expected to see stronger performance in the second half of the year.

Shares were down 1.23pc to £725 in morning trading.


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