Denali Ingredients Expands Further

United States:  Denali Ingredients, a supplier of chocolate coatings, fudge sauces, fudge sauces, powders, fruit variegates, stabilizers, extruded products, flakes and other ingredients for the dairy, ice cream, bakery and food service industries, has expanded its 40-year-old facility in New Berlin.

The company invested USD5.5 million toward a complete re-facing of the exterior façade as well as interior renovations intended to support Denali’s growth in the United States.

The investment is part of the company’s USD12 million investment, which it planned for the location. The company has witnessed a huge increase in its ingredients production in past decade, which has doubled. It also saw its sales revenue growing three fold and staff also tripled since Denali first acquired the facility in 2006.

Phase one interior renovations included a new innovation center to foster research, development and creative flavor in collaboration with industry partners, as well as a pilot laboratory where Denali is able to simulate full-scale manufacturing of new concepts. Furthermore, the company plans to invest another USD6 million in its second phase of expansion over the next 24 months, a move that will add new production capabilities and seed another 40-50 new jobs. These new investments can be attributed to growing demand of chocolates in the country, which is supported by vast product offerings at affordable prices.

According to a recent report published by TechSci Research,  “United States Chocolate Market By Type, By Age Group, By Point of Sale, Competition Forecast and Opportunities, 2011-2021”; chocolate market in the US is projected to cross US$ 30 billion by 2021, on account of increasing product offerings by private label brands at affordable prices coupled with shifting consumer preference towards chocolates with health benefits. In 2015, US chocolate market was dominated by countline and seasonal chocolate segments, which accounted for a cumulative revenue share of around 65% in the country’s chocolate market. Presence of a wide and organized distribution network of retail stores and hypermarkets/supermarkets in the country is also contributing to boosting sales of chocolates in the US, with supermarkets/hypermarkets accounting for the largest share in 2015.