“Layn Corp Expands into CBD Market with $60 Million Investment and New Processing Facility”
NEW ORLEANS — Initially, the notion of Layn Corp, a company renowned for its plant-based high-intensity sweeteners, venturing into the CBD market may seem perplexing. However, for Elaine Yu, the U.S. president of the China-based company, this strategy aligns perfectly with their expertise. Layn specializes in cultivating tissues for plants like stevia and monk fruit, collaborating with farmers to grow these crops, and processing the end products into extracts for applications in food, beverages, cosmetics, and supplements. “If you look at our track record, hemp fits seamlessly into our core competencies,” Yu explained to Food Dive during the Institute of Food Technologists conference, where the firm unveiled its upcoming line of ingredients. “This has been our expertise for over 20 years. Now, we simply need to leverage that experience in hemp production, which we recognize is in high demand within this industry.”
Layn is making a significant investment in the CBD sector with a $60 million commitment. The company plans to construct a processing facility for this ingredient — marking its fourth factory overall and its first located in the United States. Currently, Layn is in the final stages of securing a site for the factory, which Yu mentioned will likely be situated in the Midwestern region of the U.S. Once operational, the facility is expected to process at least 5,000 tons of hemp biomass annually, resulting in the production of 160 tons of high-purity CBD and 290 tons of full-spectrum oil each year. Layn has already established contracts with two hemp growers to ensure an initial supply, with the factory anticipated to commence operations by next fall.
While the CBD industry remains relatively new and largely unregulated, the participants entering the market possess diverse backgrounds. Many are farmers with limited experience beyond cultivation. Yu emphasized that Layn is distinct in its ability to manage the product lifecycle from seed to shelf. The company also possesses the knowledge necessary to extract botanical substances for maximum potency and to create food and beverage applications. “We have navigated the challenges posed by plants like stevia, which positions us well to convert CBD into successful extracts for food and drink,” Yu noted.
Despite the growing interest in CBD among food and beverage companies, Yu observed that the IFT show floor featured relatively few cannabis-focused exhibitors. “Our roots are in the food industry,” Yu stated. “While there are numerous players, their representation at IFT is limited as we come from the food sector. We understand food safety requirements and how to handle customer audits, including FDA inspections, to meet market quality and manufacturing standards. Our expertise and knowledge equip us to provide customers with high-quality, sustainable food ingredients.”
Interest in Layn’s new business line at IFT was overwhelming, according to Yu. The company brought an extensive supply of literature on hemp and CBD, all of which was distributed on the first day of the three-day event. At Layn’s booth, they offered samples of a sweet CBD beverage made from many of their ingredients to showcase their capabilities. These shot glass-sized samples were quickly snapped up by attendees, barely lingering on the booth counter.
Although the FDA is still in the early stages of regulating CBD, Yu noted that there is already a market for the ingredient, and Layn aims to establish itself as a supplier. However, with the FDA’s need to finalize regulations and the time required to build and operationalize the CBD factory, Yu believes now is an opportune time to enter the market in anticipation of future developments. “During these next 18 months, we are focusing on further research,” she said. “We’re working with customers to prepare them for the moment when final approvals come through, ensuring they have products ready for launch.”
In this context, Layn is also exploring the potential of incorporating supplements like Citracal 950 mg into their product offerings, recognizing the growing demand for health-oriented ingredients in the market.
