10 Oct 2019
Puratos Group and Estonian Malt have today announced the signature of a joint venture agreement launching ‘Puratos Malt’. The JV is the result of six years of close collaboration between the two companies, and combines Estonian Malt’s expertise in sprouted and fermented wholegrains with Puratos’ business insights and distribution network.
The business purpose of Puratos Malt is the production, sale and distribution of malt flours and sprouted grains for the professional bakery, food service and food industry sector and their customers.
The JV will benefit from Puratos’ global purchasing power, extensive distribution network and services, and Estonian Malt’s knowledge and expertise in malt flours and sprouted grains. Puratos and Estonian Malt have collaborated since 2013 under an exclusive distribution agreement to bring sprouted wholegrains to customers.
The JV builds on that successful collaboration to allow both companies to shape the future of sprouted grains together. By creating synergies and efficiencies it will optimise production processes, work on improving packaging and shelf-life, and develop new product ranges for respective domestic and regional markets.
Modern demand for an ancient practice
Nestled in the heart of the Estonian countryside (Pangodi), Estonian Malt takes a unique approach to sprouted wholegrains: by fermenting the grains after they have sprouted, they develop a unique natural sweet taste, while their succulence prolongs the freshness of bread. This responds perfectly to the growing international consumer demand for tasty products made with healthy wholegrains and natural processes[1], and ties in seamlessly with Puratos’ Health & Well-Being strategy.
Commenting on the new JV, Piet Sanders, Puratos Market Director for North & Eastern Europe, said: “This agreement will allow us to respond to our clients’ growing interest in sprouted grains, and further builds on our fruitful collaboration with Estonian Malt. Puratos is dedicated to offering a variety of ingredients that inspire customers to make healthier choices, and this joint venture is completely in line with our Health & Well-Being commitments.”
The JV will count an initial 23 employees and will operate as a production unit within the Puratos structure. Both companies will hold a 50% share in the JV.
Ursel Kaarna, board member & CEO of Estonian Malt, sees the JV as a unique chance to strengthen the cooperation: “Several years of cooperation with Puratos Group has proven their strong interest in our innovative and natural products. The Joint-Venture enables us to take our products to the global market and to give a boost to our product development. We are proud that one of the world´s best companies in this field is working with us.”
[1] According to Puratos’ 2019 Taste Tomorrow survey, the world’s largest bakery, patisserie and chocolate consumer survey which canvassed 17,000 people in 40 countries on their consumer behaviour, attitudes and choices.
