VETEX create impressive sales by customized products

In recent years, the global surge in plant-based diets has brought meat substitutes into the limelight. VETEX, by Stentorian Industries, the Taiwan-based manufacturer of TVP, is making significant strides in the food supply chain by the technology of Low Moisture Extrusion (LME) and High Moisture Extrusion (HME).

Stentorian Industries commands an impressive 70% market share in local Textured Soy Protein (TSP) sales. Additionally, the company exports 30 containers of TSP every month. How does a modest team of 45 employees generate an annual turnover of US$13 million?

Steven Fan, the CEO of VETEX, attributes its success to decades of focus on TVP innovation and an annual R&D investment of US$300,000. "Making good use of ingredient properties and accurately control the producing condition is the secret," he said. "Through the die design, we create various TVP for customers to choose," he explains.

With a consistent demand for novel and innovative shape and mouth-feel of TVP from customers, the ability of transforming concept into practice is greatly important. Contributed by putting effort into development, the sales of customized beef analogues that Stentorian develops for Asian customers have surged year by year since it was launched in market in 2019 and was exported over 200 metric tons in 2022, which underscores the company's competitiveness and growing influence in the market.

Taiwan's vegetarian culture, influenced by various religious practices, has been a fertile ground for VETEX. "We've been in the vegan market as a textured soy protein manufacturer for over 30 years, which is far earlier than other competitors," Tan added. "The customer group was mainly enterprise or restaurant for vegan food. With the rising trend in plant-based diets and culinary creativity, we're seeing an influx of traditional meat producers entering this space."

According to 2023 statistics, Taiwan ranks third globally in vegetarianism rates. The increasing demand for vegetarian products, both globally and locally, has led to a competitive market. Faced with the increase of both customers and competitors, Stentorian insists the position to be a raw material supplier, diving into their core competencies rather than diversifying into finished products.

Until now, Stentorian has marketed VETEX products to five continents around the world.

"It's easy to place an equipment and start the production in your plant, but it does take time to understand the complex extruders (the machine used for TVP production), and control the producing condition to ensure the quality of agricultural products," Tan emphasized.

Stentorian's early entry into the vegan raw material market in Asia has given them a competitive edge. "Newcomers may require higher minimum order quantities (MOQs) to meet profit margins, on the contrary, customization is a lower barrier for us to carry out since this is what we always do," said Tan.

Stentorian offers a diverse range of TVP options, including Textured Soy Protein, Textured Wheat Protein, Textured Pea Protein and High Moisture Extruded Products, available in various shapes and sizes. Its portfolio continues to expand, meeting the diverse needs of consumers.

Creativity attract consumers. However, it's difficult to satisfy customers from different countries with the same thing. Stentorian believes the food enterprise could better work up consumers' appetite through international collaboration and combining the individual strength of upstream and downstream enterprise. While extending the ambition in western food market, Stentorian is still deepening the influence into Asian markets, and is approaching new customers who establish new food processing plant in Southeast Asia.