When Patrik Edström took over as CEO of Bayn Solutions in 2018, he came in with international experience from both large and small companies, and with a solid production and processing experience.
– It was exciting to take over such an interesting organisation as Bayn. We are also very grateful for all the support that the main owner Första Entreprenörsfonden has given the company since 2011, says Patrik Edström.
He explains that Första Entreprenörsfonden invests in Swedish entrepreneurial companies within sustaintech, that is, companies that develop technical solutions focusing on sustainability and quality of life, and who are on an international growth journey. Bayn fulfilled all the criteria and therefore Första Entreprenörsfonden entered as a lead investor in Bayn.
Sugar reduction in the lifestyle segment
Patrik Edström’s contacts with, and knowledge of, the food industry are valuable for Bayn’s growth. He himself has sold sugar to confectionery, jam and ice cream companies and has an understanding of the challenges customers face when sugar is to be replaced with sweeteners. Bayn’s customers are food and beverage companies that produce consumer products in the lifestyle segment. They are looking for solutions that replace sugar without compromising on taste and texture.
Lucy Dahlgren founded Bayn in 2009, and the company offered sweeteners of natural origin early on. Bayn’s offer to the food and beverage industry has been further developed since then.
– The difference between 2009, when Bayn Solutions was founded, and the company I lead today is that our production not only rests on stevia, but also on other sweeteners of natural origin. Our product Eureba replaces sugar without problems, he says.
The raw materials are a strong success factor
Bayn develops sweetened fibres that are carefully selected fibres sweetened with sweeteners of natural origin from the stevia plant. Often, sugar alcohol is also included to get the right taste and texture. The choice of raw materials is a strong success factor and therefore there is no reason to change direction in the future, says Patrik Edström. In the future, Bayn will create an even clearer business by focusing on the raw materials and their development.
– If you make products in the lifestyle segment, you as a food producer should have a product that makes the consumer feel good. Then you should also be able to tell that the sweetener is of natural origin, he says.
When Bayn can reach break even
Sugar reduction and raw materials of natural origin are in focus today. This is also evident in Bayn’s sales and volumes, which are steadily growing. Patrik Edström’s forecast is that Bayn will achieve sustainable growth in the near future, and break even in 2021-2022.
– The first goal is for sales to reach SEK 100 million, and I believe that Bayn can get there in 2022. If we can see that sales figures are increasing faster than in the coming years – then I am satisfied, he says.
Development will meet the market’s needs
Bayn, with Patrik Edström leading the company, sharpens the deal to reach the goals. In the coming years Bayn will invest in developing production and production technology. The goal of the investment is a more efficient production and to create more advanced ingredients in terms of microstructure and crystallization.
– If we can incorporate more qualities into our product, for example that it will liken sugar to its structure even more, then we can meet the wishes and needs of the market, he says.
During 2019, as Bayn celebrates ten years in existence, the companyhas launched intensive marketing efforts to increase the awareness of Bayn’s concept. The new website and the strategy behind it also create an influx of new customers.
– We will add to this effort with technical expertise and staff that follows up on our leads. That is why we are looking for food technicians with business acumen who can reach out to customers, assist with knowledge and expertise and ensure that production with Eureba works without problems, says Patrik Edström.
Plans for own pilot plant
To strengthen the business there are also plans to buy technology and build a pilot plant in Gävle, where Bayn’s R&D team works. The idea is to create a scale model of a production facility where the R&D team can test process and method changes already in the lab before applying them on a full scale. Such a solution would mean that the production capacity is above lab size, but well below a full-scale production operation.
– What we want to achieve is a simulation of real production conditions. This way, we can get a faster turnaround, partly by fine-tuning customers’ recipes and partly by developing our own products, he explains.
New products and new knowledge
On the drawing board are also ideas for semi-finished products under our own brand . The idea is to be able to offer, to for example chocolate manufacturers, semi-finished products where the sugar has been replaced by Eureba. A similar idea exists for fruit purees, so-called fruit preps.
– This type of semi-finished product is of interest for bakeries and their suppliers, as well as for the ice cream industry, as an example. Another promising product is sprinkles; It is a product that basically consists of nothing but sugar and it can be replaced with Eureba, says Patrik Edström.
To succeed with this type of venture, Bayn needs to look for a new type of expertise.
– We see a need for product consultants, who have clear technical knowledge and who know what problems can arise in, for example, the bakery, confectionery and ice cream industry, says Patrik Edström.
Bayn has moved the manufacturing of Eureba to Sweden to get closer to the European market. In the future, Bayn wants to become even more local. The equipment Patrik Edström has in mind would be possible to set up anywhere in the world where Bayn would produce their goods.
– Today it’s important that we all consider our carbon footprint. This is why we are looking at possibilities to have production close to our customers’ markets. For example, our customer Paradis-Is is interested in delivering a US-produced product that is sweetened with Eureba. In a near future, we will find solutions to this, he says.
On the marketing side, Bayn is going for a new approach. Patrik Edström says that the organisation will work with significantly more campaigns. This means that their own breakthroughs in the food industry will spread to other equally relevant industries faster.
– The campaign idea is as yet on the drawing board. But it aims to roll out one market segment after another, gathering force where it is successful, mapping industries both in Sweden and globally, and taking a broad and thorough approach to increase sales, he says.
Team is everything
Patrik Edström has a dedicated team of widely diverse skills. And a strong Board of Directors, where the Chairman of the Board, Peter Werme of Första Entreprenörsfonden, is an experienced door opener for networks and contacts.
– We are strong and we have a good financial situation. I look to the future with confidence, says Patrik Edström.
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