Tate & Lyle PLC (LSE:TATE) is betting that its bolstered capabilities in texture and stabilisers, known in the industry as mouthfeel, will help drive faster growth as food manufacturers reformulate products under pressure from cost constraints, obesity drugs and tighter regulations.
Deutsche Bank said the company’s acquisition of CP Kelco has strengthened its position in an area seen as "critical" to product reformulation.
All three of Tate’s business platforms are seen as well placed to deliver healthier, more nutritious foods, but mouthfeel stood out at the company’s recent capital markets event.
The broker reiterated its 800p price target and ‘buy’ rating. In afternoon trading, the stock was up 1% at 547.5p.