“Perfect Day’s Strategic Acquisition of Sterling Biotech: A Leap Towards Expanding Animal-Free Dairy and Gelatin Markets”
While Perfect Day has enjoyed a remarkable year marked by significant new products and initiatives, the acquisition of Sterling Biotech signifies the company’s most substantial advancement to date. This acquisition effectively doubles Perfect Day’s production capacity, thanks to four cutting-edge manufacturing facilities equipped with strong fermentation capabilities. With its new assets in India, Perfect Day aims not only to broaden its market presence but also to diversify its product offerings.
Sterling Biotech produced pharmaceutical-grade gelatin—used in capsules—and dicalcium phosphate, a calcium supplement often found in time-release pills and as an anti-caking agent in food. Perfect Day intends to continue serving Sterling Biotech’s existing customers while retaining all of the former company’s employees. “This strategic acquisition will significantly enhance our ability to produce and market protein while utilizing our robust technology platform across new ingredient opportunities,” stated Ryan Pandya, CEO and co-founder of Perfect Day.
The acquisition of Sterling Biotech presents Perfect Day with the chance to create and offer more animal-free dairy protein, as well as other ingredients developed through precision fermentation. This innovative process modifies common microbes, like yeasts, to produce substances identical to those naturally made by animals and plants during fermentation. Other companies have successfully employed this technique to produce egg proteins, fats, and rare sweeteners.
Given that gelatin is derived from collagen proteins sourced from animals, this acquisition opens a vital door for Perfect Day to enter the animal-free gelatin market. With its precision fermentation expertise and equipment, the company now also holds a significant share of the global gelatin market. Should it choose to pursue this ingredient, Perfect Day has access to interested clients who can assist with pilot tests and help generate greater demand.
Expanding animal-free dairy products into a new market is also a significant opportunity. India stands as the world’s largest milk producer, accounting for 22% of global production, according to the Food and Agricultural Organization of the United Nations. It is also the largest consumer of milk, making the Indian market ripe for innovative products.
Despite the acquisition’s approval, it will take time for Perfect Day’s dairy proteins to be incorporated into consumer packaged goods (CPG) in India, as food companies often require a year or more to develop and bring new items to market. In the meantime, Perfect Day plans to export the animal-free protein produced in India to other regions. Additionally, the integration of vitafusion calcium citrate into its product offerings could enhance its appeal in both existing and new markets, further emphasizing the company’s commitment to innovative, health-oriented solutions.
