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Global food processing and commodities giant ADM (Archer-Daniels-Midland) has acquired Revela Foods to expand its capabilities into the dairy category.
With projected sales of almost $240m in 2023, Revela would add to ADM’s flavors portfolio in the $1.8bn global dairy flavours segment, as well as the $3.2bn savory flavours segment, the group said.
Wisconsin-based Revela employs 400 staff at three production facilities in the US Midwest. It has been a portfolio company of New Heritage Capital since 2019 and its enzyme technology powers a range of clean-label dairy flavour formulations for multiple applications, from snacks and frozen meals to sauces, dressings, soups, seasonings and desserts.
“Revela has built a strong business around its unique range of dairy flavour ingredients and solutions for customers spanning major brands, retailers and food service,” said Calvin McEvoy, ADM’s president of global flavors.
“ADM has a strong presence in the North America savory flavors segment, and we’re excited to work with the impressive Revela team to expand our opportunities there, bringing their technology and innovation together with our global capabilities to power our unparalleled range of ingredients and complete solutions for customers who are looking for great flavors and clean labels.”
Revela CEO Terry Schneider added: “We are excited to partner with ADM to further Revela’s reputation as an innovative, turnkey provider of dairy flavor ingredients and solutions. We believe joining the ADM family will allow us to offer even broader solutions to our customers and will provide our employees with even greater opportunities for advancement.”
ADM has been diversifying its traditional grain handling business into flavors and nutrition foods in recent years. Since acquiring Wild Flavors in 2014, ADM has added multiple new offerings to its flavours portfolio through acquisitions, including savoury via Eatem Foods; citrus via Florida Chemical Company and Erich Ziegler Citrus; and vanilla via Rodelle. The company has also expanded its flavours capabilities globally with acquisitions such as Flavor Infusion South America; organic investments in its Pinghu, China, flavor production facility and the expansion of its Berlin flavour facility; and its growing network of innovation centres spanning Europe, Asia, Latin America and North America.
“ADM’s integrated business model and unparalleled production and product application expertise power a portfolio of customisable, complete nutrition solutions that no other company can match,” said Ian Pinner, president of ADM’s Nutrition business. “Our flavours business is an important pillar of our nutrition growth strategy, and we are continuing to add to our flavours pantry to ensure we remain the partner of choice for customers around the globe.”
The acquisition - for an undisclosed sum - is subject to customary closing conditions and regulatory approvals. ADM intends to complete the transaction early in 2024.
Morning update
The City is extremely quiet this morning for retail and fmcg news as the markets wind down ahead of the Christmas break.
The FTSE 100 nudged up 0.1% to 7,622.39pts this morning.
Early risers included McBride, up 3.2% to 92.7p, Ocado, up 3% to 750p, Glanbia, up 2.4% to €15.26, Nichols, up 2.3% to 1,114.5p, and SSP Group, up 2% to 235.8p.
Virgin Wines UK leads the fallers first thing, down 4% to 36p, while Bakkavor is down 1.1% to 82.1p.
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