13 jan - 22 jan
Sweet solution for the global market
Food sweeteners launched in the market have been historically difficult to use. Bayn Europe has therefore developed a product with sweetened fiber that can replace sugar directly. The company now celebrates its 10th anniversary by investing in market expansion.
Text: Christian von Essen
There’s no doubt about the need to reduce our sugar consumption. However, what large-scale alternatives are actually available in the market? Bayn Europe's history proves that the solution comes with both great challenges and enormous potential.
Swedish-Chinese Lucy Dahlgren's father was a professor in China, where he conducted research on various sweetening alternatives. They came in contact with stevia early on, where Lucy was then commissioned to investigate the establishment of stevia refineries. She saw great potential in introducing the product to Sweden and Europe, founding Bayn Europe in 2009 as a result.
It didn’t end up being so easy, however. Stevia’s concentration is 300 times stronger than regular sugar, making it difficult to dispense. This creates issues with volume when using stevia in recipes instead of sugar.
Bayn Europe nevertheless continued to work with stevia, with the company being launched on the stock exchange in 2014. Subsequently, they started investing in research and development to develop their own products under the Eureba brand.
CEO Patrik Edström
“There’s no doubt about the need to reduce our sugar consumption”
Interwiev About The Company
1:1 sugar replacement
2018 was a turning point for Bayn. By running prebiotic fibers through a high-intensity sweetening solution, Bayn succeeded in obtaining "sweetened fibers" - a homogeneous and soluble product. Bayn could finally go to the market.
“Eureba powder comes with the same volume as sugar - and the same sweetness. This means that a recipe does not need to be amended in order to be sugar-free. The market potential is huge,” says Patrik Edström, CEO of Bayn Europe.
He believes that the sales process usually involves three recipients who need convincing: marketers who see benefits of the initiative; developers who have solid technical and chemical knowledge; and investors, who need to understand the value of the market's focus on health, lifestyle and sustainability.
The trend has been moving in a very positive direction."It was just three years ago that so many were skeptical, but today, all producers want to be able to offer reduced sugar product ranges."
“It was just three years ago that so many were skeptical, but today, all producers want to be able to offer reduced sugar product ranges”
Ice cream without sugar
Today, Bayn has three ice cream manufacturers as customers, who in turn deliver to other brands. In other words, the probability that an average child in Sweden has tried Eureba is high. Candy makers also use the product.
The company’s target is now set on a broader market. "Many companies invest resources in developing this type of solution on their own. I know we can save companies at least half a year's worth of development in obtaining a complete sweetening solution."
But it's not enough just to buy a lot and start mixing - Eureba comes in 15 different forms, depending on whether the customer wants to use the product in dark or light chocolate, baked products, drinks with high or low ph value, etc.
Patrik Edström says that they even worked with a large ketchup producer.
“It was very exciting. They wanted our help in developing new sugar-free ketchup flavors for two very specific markets. We have the knowledge and resources to be involved in the whole process and tailor solutions for larger customers, so there is good potential for close partnerships. ”
“Candy makers also use the product. The company’s target is now set on a broader market.”
10th anniversary with a new start
With a proven product portfolio, good development opportunities and a global market that is looking for sweetness with less sugar, 10-year-old Bayn Europe is in an exciting phase. Patents are also being sought for both the product and the manufacturing method.
Following a successful issue in October, the company raised new capital in a targeted issue to a small group of investors. In January, additional warrants will be distributed to existing shareholders under the same conditions.
“The money will be used for technology development, as well as for developing the sales channels. We also need to strengthen the team with more commercially minded technicians and can take on a business development role at the company. "
Patrik Edström menar att omsättningen på 6,7 miljoner kronor fortfarande är blygsam. Men ambitionen är en snabb tillväxt härifrån.
”Vi hoppas kunna sälja för 20 miljoner under 2020 och 70 miljoner året därpå. Fortune Business Insights har estimerat att den här marknaden kan vara värd 10 miljarder USD år 2026. Då ska vi ha en bit av den kakan.”
Preliminary timetable for the Rights Issue (all dates refer to 2019 & 2020)
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Shareholders in Bayn Europe have the exclusive right to subscribe for shares
One (1) subscription option is granted for nine (9) shares. One (1) subscription option entails the right to subscribe for one (1) new share at a strike price of SEK 1.45 per share
Buy your shares before December 5 to be eligible to participate in the issue
The date for the subscription of shares through exercise of the subscription option is from 13 January 2020 to 22 January 2020.
Trading in the subscription options will not be admitted prior to the start of the subscription period. The issue comprises 4,275,483 subscription options of the TO series 5. Upon full subscription of the rights issue, Bayn Europe will receive approximately 5 million before issue costs.
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