Lallemand announces worldwide price increase

Lallemand has announced a worldwide price increase on yeast effective from January 2012. Yeast prices will increase up to 16% depending on product, quantity and terms.

A company press release says the main contributors to the production cost of yeast have risen significantly over recent years. These costs include labour and key raw materials such as molasses, utilities (electricity and wastewater) and fuel, which has resulted in increased costs of distribution.

“The increased costs have already eroded the margins to below the minimum required to justify further necessary capital investments to guarantee satisfactory product quality and service levels” said Ray Stout, chairman of Lallemand’s British Isles and Africa division.

“Lallemand remains committed to minimising cost increases by ensuring world-class efficiencies and operations in our business, but there is a limit to what we are able to sustain without increasing our prices.”

Lallemand’s South African subsidiary, Anchor Yeast, is the leading yeast manufacturer in Africa. It has been active in the country for over 85 years, dating back to 1923 when Daniel Mills and Sons started the first yeast factory in Cape Town.

The business today boasts a dedicated workforce of over 400, state-of-the-art factories and a national distribution network that ensures the delivery of the freshest quality yeast for customers and consumers alike.

The Bakery Specialties business unit serves the needs of the baking industry, delivering leading-edge, technology-based, yeast, enzyme and specialty ingredient products.

Anchor Bio-technologies business unit specialises in the supply of value-added natural yeast solutions for the wine, whisky, commercial brewing and bio-control industries.

The Consumer business unit of Anchor Yeast supplies a range of leading products used in home baking and brewing, as well as small-scale commercial baking.

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