Rousselot reorganisation places fortunes on collagen’s meaty shoulders

By Will Chu

- Last updated on GMT


Related tags Rousselot Collagen Protein

American ingredients business Rousselot is to reshuffle its segments in a move that places its collagen-based products at the forefront of the firm’s growth and direction.

The decision reorganises its brands and products into three new strategic segments: Rousselot Health & Nutrition, Rousselot Functional Ingredients and Rousselot Biomedical.

Its Health & Nutrition arm includes Peptan collagen peptides, Peptan IIm to support joint health and mobility, and ProTake for protein enrichment within its product stable.

Rousselot Functional Ingredients segment now houses the firm’s interests in gelatine that include SiMoGel, a starch-free solution suitable for nutraceutical gummy production, where nutrient cross-contamination through starch may occur.

The segment also looks after the firm’s Stabicaps soft gel capsule solution designed to prevent interaction with active ingredients.

“The new segment organisation will provide a better infrastructure to keep servicing our customers with the operational excellence that distinguishes us,”​ says Jos Vervoort, executive vice president at Rousselot.

“At the same time, this allow us to further explore the potential of this extraordinary molecule, even in unexplored fields.

“Our continuous success is a testament to our commitment and expertise, which since 2014, has been further supported by Darling Ingredients. I am looking forward to see the renewed strength Rousselot will gain from this.”

Collagen’s versatility 

Rousselot’s decision to place collagen as the main focus of its operations speaks volumes as to the advances this ingredient has made beyond hair, skin, and nail supplements.

With applications in the sports nutrition, nutricosmetic and healthy ageing categories, the ingredient now finds itself playing a role in supporting different functions from muscle mass building to joint health.

In addition to the introduction of its new segment organisation, Rousselot will also present a new website and refreshed logo that it says reflects its new strategic direction.

Rousselot has been under the ownership of Darling Ingredients since 2014, when the US ingredient producer announced the acquisition of VION Ingredients.

VION Ingredients' global network include interests in the by-product markets where they count Sonac (proteins, fats, edible fats and blood products), Ecoson (green power) and Rousselot (gelatine) as part of their company portfolio.

Now, Darling’s Food Ingredients segment consists principally of its collagen business conducted by Darling Ingredients International under the Rousselot name.

Collagen 'largely non-substitutable' 

In its 2018 annual report​, Darling described collagen as “largely non-substitutable,”​ adding that it was used in small amounts in most products.

“Currently, available substitutes are limited and do not have the broad functionality required for most usages,”​ the report says.

“Rousselot collagen products have higher sales prices relative to the Company’s other end products, but comprise a minimal portion of the cost of final products in many segments, for example the pharmaceutical end markets.

“We believe many end customers focus on collagen quality and consistency, supply reliability, application know-how and regulatory support and are therefore relatively less price sensitive to collagen products.

“Rousselot’s profitability is mainly driven by its ability to timely transfer increases in net raw materials costs to its customers in order to realise a relatively stable added value per kilogram of collagen, in combination with a strong focus on operations excellence and product quality.”

Rousselot is involved in all four types of collagen (pigskin, hide, bone and fish) and the report states that raw material prices are mainly driven by its availability and quality.

It adds that sales prices are mainly driven by market demand and the expected availability of collagen supply.

“As such, securing sufficient raw material positions is key to the business. Rousselot enters into formal arrangements related to raw material purchases that differ by raw material type, by duration and by regional area.”