Dear Dennis:

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Alginate - Dental Impression

Just back from a visit to my dentist (Dennis). The technology for digital intra-oral scanning dental impressions was supposed to make alginate based dental impressions obsolete. The replacement is happening but alginate is far from obsolete in this application. My dentist had both technologies available but opted for alginates in part because it was easier and faster to administer.

This is a small and niche market for alginates but undoubtedly a high margin application. One online market report states that the alginate dental impression market will grow at 10% from $800 million in 2023 to $1.5 billon in 2023. We, IMR, do not believe this market is growing at 10%. Indeed, in view of the slow but steady incursion of digital scanning, it may not be growing at all. IMR's overall growth estimate for alginates worldwide in all applications is no more than 2.5-3.0% per year. Alginate is a mature market.

We welcome input from Hydrocolleagues on this topic.

Note: One benefit touted for digital impression is 'less intrusive and less painful than alginate impressions'. This difference is hardly worth mentioning when compared to pain killing and numbing injections which are often also necessary. I know!!!

LBG Hard to Pin - Relationships Count

What is the price of: a) Pods b) Seeds c) Gum?

For those involved in the LBG market—whether as buyers, sellers, or intermediaries—you already know that these seemingly simple questions are quite complex. What country of origin for pods? (Even the region of a country makes a difference). How old are the seeds? They degrade faster than the pods. Where is the gum processed? There have been contamination issues in the past.

The most accurate answer is "Nobody knows exactly," not even the major players on either end of the supply chain. In fact, there is no exact answer, only estimates.

Nevertheless, LBG transactions continue tot take place. It is beneficial to have a general understanding of market situations and trends. During uncertain times, relationship building and trust become even more important. IMR's recommendation? Look for those suppliers have honored contracts, even if sometimes at a loss, during the highly turbulent periods for LBG. These trusted suppliers deserve the continued business.

The carob pod harvest has begun in Morocco, but large volumes have not yet reached the kibbling stage. Several kibblers are currently staying on the sidelines, finding kibbling to be a loss-generating activity at current prices. A drought and extremely high temperatures (up to 115°F or 46°C with 13% humidity in Marrakesh on July 24, 2024) are expected to reduce the Moroccan pod harvest significantly. However, pod inventory levels are high and consumption is down. A shortage of raw material is not expected as long as profitable conditions return in the supply chain.

Soooo, What is the current estimated price of a) Pods, b) Seeds and c) Gum? Full details in the next issue of The Quarterly Review of Food Hydrocolloids. The subscription/confidentiality agreement is HERE. IMR also has to earn its keep and these free Tidbits do not do it. Hope you understand.

Note: The Q2-2024 edition contains IMR's in depth exploration of the LBG market after our personal visit to Morocco. Clients are invited to contact IMR at any time throughout the year for discussion and consultation. They do not need to wait for the Quarterly Review to land on their desk/screen

Geopolitical Tensions and Hydrocolloid Risk Management

The upcoming US elections have savvy hydrocolloid buyers assessing the risks associated with their hydrocolloid portfolios and seeking ways to mitigate them. This is a prudent approach given the current situation. In late May, the US imposed new tariffs on many tech products, such as semiconductors, solar panels, and electric vehicles. These new tariffs, effective August 1, 2024, are 50% on these tech items. This is nearly double the tariffs implemented by the previous administration. The looming deadline has caused many companies to expedite shipments leading to a sharp increase in demand for containers and shipping berths. Subsequently, there has been a sharp increase in shipping costs. These rising shipping costs are certainly impacting hydrocolloid buyers, many of whom are facing delays in addition to price increases.

The tech sector was targeted by the outgoing administration. What sector will be the next target? We have our ideas. Tensions are certainly heightened, and buyers should be exploring potential solutions. IMR has emphasized this in the past: qualify multiple sources for any hydrocolloid purchased, including at least one local source. We realize, of course, that a local source is often not available. Hydrocolloids are specialty ingredients, and there are rarely drop-in replacements. Maintaining strong relationships with reliable suppliers is key to managing supply chain instability.

One thing we're wondering; will shipping prices decline after the deadline? Find out in Q3 of The Quarterly Review of Food Hydrocolloids.

Excess Inventory

IMR does not buy, sell, represent or accept advertising for any hydrocolloid. We do, however, use our extensive Hydrocolleague network to connect potential buyers with sources of excess inventory that we have become aware of.

Resistant Maltodextrin

20,000 lbs, 9.1 tonnes

Made in USA - ADM Fibersol 2

Expiry - June 2025

Located UK warehouse

Specification sheet available upon request.

Agar

12.5 tonnes food grade gracilaria agar.

Gel strength >900

Kosher Certified

7 palletised lots. Finished and packed in Europe.

Location – Mexico

Production date 4-2022. Shelf life to 4-2025

Seriously interested parties please contact IMR International for further details. In the interest of full disclosure, IMR will receive a small finder’s fee, if and only if, a buyer has successfully been connected with the seller.

Hydrocolloid People and Positions

Let us know if you are looking for a position or have a hydrocolloid position to fill. IMR is not a 'head-hunting' recruiting company. We do, however, have thousands of "Hydrocolleagues" amongst whom we sometime engage in 'Matchmaking.'

People

Candidate 1

Thirty years Commercial and Technical executive PhD Food Chemistry and exec MBA. Skilled in formulations/ ingredient interactions, hydrocolloids/ texturants, flavor science, sugar reduction, bio-based precision fermentation. Excellence at growing global key accounts and building strategic partnerships. Strong external orientation, follows consumer trends, keen ability to lead cross-functional multi-cultural teams to deliver sustainable solutions to customer. Passion for health, nutrition, biotechnology.

Candidate 2

Experienced hydrocolloid professional who has led R&D initiatives in both CPG and B2B ingredients. Innovative problem solver for commercial technical hurdles and opportunities in both new product development and cost out initiatives. Strong hydrocolloid foundation with a PhD in polysaccharide chemistry, followed up by 20+ years at some of the largest multi-national food companies with increasing responsibilities.

Candidate 3

High level executive in hydrocolloids. Past president and CEO of a major gelatin and collagen producer. over 30 years of global experience in the use of hydrocolloids in food, nutraceutical and pharmaceutical applications. Successful in driving revenue growth and profitability in highly competitive markets. Strengths in business strategy and management, sales, manufacturing and team leadership and development.  

Dual citizen US/EU. Willing to relocate.

Candidate 4

Over twenty years experience in strategic ingredient sourcing and procurement. Many years of experience specific to hydrocolloids at major end-users AND at major hydrocolloid producers. Negotiates with knowledge of both sides of the equation. Team management and leadership capabilities. Technical capabilities allow good collaboration with food formulators, R&D, engineering and QC. Mid-West US based.

Candidate 5

Thirty years of focused hydrocolloid experience at a blue chip hydrocolloid company.

Multi-national postings in technical service, technical sales (commercial), key account management, product management, market positioning and market/competitive intelligence. Food science degree combined with wide commercial exposure at the producer, food company and consumer level. Curious, innovative and self-driven.

Candidate 6

High level executive. Candidate has 16 years of food ingredients experience with a focus on hydrocolloids and in particular cellulosics. Business development in food, pharma and industrial applications. Most recently plant based innovation. Successful team building record with a broad understanding of hydrocolloid functionality , raw material vulnerability and pricing strategies in a competitive environment.

Candidate 7

Bilingual Hydrocolloid Expertise. Decades of hydrocolloid experience, commercial & managerial. Bilingual English/Spanish. Account Management, and new Business Development thru market analysis and consultative sales in the Food & Beverage, Pet, Personal Care, and Industrial applications of hydrocolloids. North American and Central American coverage. Familiar with food safety, imports analysis, and applications of water-soluble polymers, food and non-food.

POSITIONS

Site Manager - EU

An International Gelatin and Collagen company is seeking an experienced individual to lead a European manufacturing facility.  Candidate will be responsible for all aspects of the business but must have extensive operations experience in the same or similar field. Excellent opportunity with a high level of independence. Salary commensurate with experience and position.

Sales & Business Development

A leading and major Asian producer of several key hydrocolloids.

Seeking two US based individuals to take existing sales volume to the next level.

Self starters with good knowledge and contacts in the food market.

Minimum 5 years experience in hydrocolloid sales.

Some technical knowledge a plus to serve as initial technical service responders.

Excellent opportunity with a high le vel of independence.

All positions in IMR Tidbits are of course hydrocolloid related. In the interest of full disclosure, IMR will receive a small finder's fee, if and only if, we have successfully matched a candidate to a position.