Oterra strengthens US presence
Oterra is building on its capabilities in the US with a state-of-the art innovation, collaboration, and production hub in Wisconsin.
The 155,000 sq ft (14,400 m2) US headquarter combines Oterra’s innovation and application labs with a new manufacturing and logistics facilities to meet the expected growth of natural colours and colouring foodstuffs in the country.
“The new facility is a direct commitment to the US market,” says Oterra CEO Martin Sonntag. “Oterra already has a strong foothold in the North American market, catering to the demands of an environmentally conscious and health-focused consumer base. This puts Oterra in a great position to further support our customers in the conversion towards natural colours.”
Customers and partners can work directly with Oterra’s team of regulatory and application experts to find the perfect natural shade as they innovate and develop new products or reformulate with natural colours to help deliver on consumer demands faster.
A further 40,000 sq ft of expansion space is available for new colour products and partner pilot production lines.
The Natural Colors Association (NATCOL) released a study in May (NATCOL US Consumer Food and Beverage Colors Attitudes Study, 2024) that looked at US consumer perceptions on natural food colours and the extent of which they were accepting different food colourings and how it influenced their purchasing decisions.
The appearance of food and beverage was ranked top five among consumers, while the specific awareness of colour was lower compared to other components like taste, price, protein content, sugar content. There was, however, a significant preference for natural colours where 7 out of 10 consumers accepted natural colouring in their food and beverage and expressed positive connotations like ‘healthy’, ‘safe’, ‘good’, ‘sustainable’ and ‘appealing’ in products containing them.
Since colour in the US is only labelled as ‘added colour’ US consumers had difficulty understanding what natural colours are, but when explained, they were encouraged by claims that promised the presence of natural colours.
“We have observed notable shifts in consumer demand, primarily fuelled by an increasing focus on health and wellness,” says Chari Rai, head of applications, North America.
“Consumers are becoming more informed and intentional about the choices they make, seeking products that align with their desire for healthier lifestyles. This trend extends beyond just nutritional value to include cleaner labels, natural ingredients, and sustainable sourcing. Additionally, regulatory changes in certain states are expected to further accelerate the demand for products that limit or eliminate the use of artificial dye.
“Oterra prides itself on making natural colours easy for customers and the opening of the new facility will help us fulfil that promise. Besides having the widest range of natural products, we can offer our customers world-class R&D and application labs, hands-on training, and team inspiration events that can help food and beverage companies stand out in the market.”
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