China’s BGG goes global with new Swiss base and diversifies into food ingredients

12 Apr 2024 --- BGG, a leading Chinese branded ingredient supplier, has revealed plans to create a new global headquarters in Switzerland as a launchpad for international expansion. Operating as BGG World, the company intends to diversify into the food ingredients sector, beginning with its existing stevia and licorice extract solutions, while broadening its product offerings in cosmetics and dietary supplements.

Based in Beijing, the family-owned firm says it will implement a transformative plan to build on more than 25 years of continuous growth by fostering deeper relationships with its international customers and partners while maintaining its production and R&D roots in China.

BGG seeks to streamline alignment with its customers’ strategies by centralizing critical international functions in Switzerland, meeting their needs more efficiently and enhancing risk mitigation within the global supply chain.

The realignment is also expected to leverage what the company sees as “significant market opportunities” for its technology platforms and diverse product portfolio.

The new Basel base will be managed by recently appointed CEO Jürgen Nelis and supported by Thomas Adler, who joins as global commercial director to spearhead the supplier’s international corporate strategy.

“As we internationalize our organizational structure and operating model, we will be investing heavily in our commercial organization,” says Nelis.

“We are currently hiring several sales managers in Europe and the US, and by doing so, we will more than double our customer-facing resources in these key markets.”

“At the same time, BGG will continue to invest in its asset base and human clinical trials for its core products.”

Chunhua Li, the founder and principal shareholder of BGG, adds: “We strongly believe that our three leading technology platforms — botanical extraction, enzymatic conversion, and micro-algae farming — combined with continuous investment in clinical trials, will provide our customers with high-value, sustainable business potential for the long-term future.”

Food expansion goals
According to Nelis, establishing stronger global processes and structures that work together across geographies and languages will be a major challenger for the expanding company.

“We will overcome this challenge with BGG’s strong and trusted company culture and investment in highly qualified leaders and specialists. BGG has started to hire experienced professionals from leading global corporations such as Givaudan, DSM, Bunge and Roche,” he tells Food Ingredients First.

“BGG will invest in its core technology platforms to stay a technology leader. Its goal is to be amongst the top three global producers of its strategic products and solutions.”BGG’s technology platforms (botanical extraction, enzymatic conversion and micro-algae farming) will target expansion opportunities.

The company has a strong portfolio of products and a pipeline of ingredients suitable for the food market. It will develop customized formulations that fit the value proposition of its customers.

Besides single ingredients, BGG will provide integrated functional solutions for taste and texture in specific applications. Due to IP reasons, BGG is not yet able to disclose more specifics.

Natural cosmetics ingredients
Meanwhile, several of BGG’s ingredients are suited for the “beauty from within” market and topical applications.

“With its technologies, BGG has access to an almost unlimited palette of natural ingredients, including the ones used in traditional Chinese medicine,” Nelis tells us.

“Science and clinical studies are in the DNA of BGG. With targeted clinical and topical studies, BGG provides efficacy evidence to its customers.”

BGG has consistently grown through innovation and international business development, but the global expansion will bring customers a harmonized strategy across their worldwide markets.

“The organization structure will be centrally led while keeping the strong regional focus,” says Nelis.

By Joshua Poole