Exclusive interview: How Novonesis’ acquisition strengthens its market position and innovation in animal nutrition
The Danish company Novonesis recently announced that it has acquired dsm-firmenich’s share of the Feed Enzyme Alliance. Novonesis will take over dsm-firmenich sales and distribution activities. Tina Sejersgård Fanø discusses the impact of the recent acquisition and how it strengthens their market position.
Tina Sejersgård Fanø: The Feed Enzyme Alliance has been in place for more than 25 years, making it a long-standing and successful collaboration. During this time, Novonesis has been responsible for research, development and production, while dsm-firmenich managed distribution and sales. This division of responsibilities has allowed us to maintain a strong market position in enzyme solutions for animal production.
At our recent Capital Markets Day, we outlined various building blocks designed to accelerate growth and this acquisition is a major milestone in that journey. It allows Novonesis to significantly expand its presence in the animal biosolutions market.
Until now, our company has primarily focused on probiotics for animal nutrition. With this acquisition, we gain major advantages. First, we can offer a more comprehensive product portfolio to our customers. For example, Novonesis already has a strong presence in North America, selling probiotics to animal nutrition customers. Now, we can also provide enzymes to the same customer base, creating a broader offering.
Exactly. The second benefit is that we increase our market reach. As part of this deal, we are integrating additional employees into our team, which means more people on the ground and a larger footprint in the industry.
The third advantage is innovation. By combining probiotics and enzymes, we can develop new solutions that weren’t possible before. This acquisition not only strengthens our market position but also enhances our ability to drive innovation in animal nutrition.
Those 3 pillars — broader product offerings, a larger footprint, and enhanced innovation — are the driving forces behind this move.
Yes. Historically, the feed enzyme market has been particularly strong in monogastric species such as poultry. Many of the probiotic solutions we sell today are effective across multiple species, and we also have a strong presence in silage inoculants, which are primarily used in the beef sector.
This acquisition brings significant complementarity — not only in terms of product portfolio but also across different species and regions. It allows us to provide a wider range of solutions to individual customers while also accelerating our innovation pipeline.
The Feed Enzyme Alliance already had a strong global footprint and was a market leader in enzyme solutions. Now, by integrating probiotics into our portfolio, we strengthen our leadership position. Additionally, dsm-firmenich will remain an important customer for us. While our alliance was previously structured as a profit-sharing contractual agreement, dsm-firmenich will now become a key customer, leveraging their strong premix business in the process.
Absolutely. The nature of the relationship is evolving, but dsm-firmenich continues to be a critical partner. The shift from a contractual alliance to a supplier-customer relationship reflects our strategic growth while maintaining strong collaboration.
To successfully deliver on our expectations for this combined business, we will welcome current dsm-firmenich employees into Novonesis. We’re very excited about this. Additionally, we will be hiring even more people to support our expansion. Our business case includes plans to scale up operations, ensuring we have the right talent in place to meet growing demand.
By combining probiotics and enzymes, we can develop new solutions.”
Sustainability is at the core of Novonesis’ mission. Our solutions help customers operate within planetary boundaries, promoting responsible and efficient animal production. With a broader reach and stronger market presence, we can drive even greater impact by offering more sustainable alternatives for animal nutrition.
The demand for protein continues to grow and our innovations help ensure that protein production becomes more sustainable. By expanding our portfolio and enhancing innovation, we contribute to a more efficient and environmentally friendly animal nutrition industry.
Definitely. Novonesis is an innovation-driven company, investing roughly 10% of our turnover in R&D. This acquisition enhances our connection to the market, giving us better insights and allowing us to integrate real-world feedback into our innovation pipeline. By combining probiotics and enzymes, we can develop more targeted and effective solutions that support sustainability in animal nutrition.
Novonesis is a growth company, and we continually invest in our business. Growth can take many forms, including innovation, mergers and acquisitions, and organic expansion. The acquisition of dsm-firmenich’s feed enzyme business is a perfect example of how we strategically strengthen our position in the market. While we remain open to future opportunities, our focus will always be on core biosolutions.
Exactly. This acquisition allows us to take ownership of the full value chain—from innovation and development to manufacturing, marketing, sales and distribution. This sets us apart in the industry and enables us to serve both existing and new customers more effectively.
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