LycoRed has previously had a small presence in Germany, but given the potential offered by the German supplements and functional foods market, it judged that it needed a bigger machine to make the most of opportunities for its carotenoid brands and supplement, food and beverage fortification ingredients. Marketing director Udi Alroy told NutraIngredients.com: "The German supplements market is very competitive and requires a lot of innovation and new active ingredients." He added that Germany is generally understood to be the largest dietary supplement market in Europe, with around half of all supplements sold in or via Germany. As for foods, the company already sells quite large volumes of its premixes to German and multinational food companies. In addition to widening existing distribution channels, the arrangement with Eurochem is expected to open up more market segments for LycoRed's products, in which it has previously been inactive. Alroy said that breakfast cereals is one such segment that the company is eyeing keenly, and natural food colourants is another. He called Germany: "The leading market for the natural phenomenon". The two companies have signed an agreement that will considerably increase LycoRed's presence in the high-potential German market for both supplements and functional foods.