USA– American multinational food processing and commodities trading corporation ADM has acquired Flavor Infusion International SA in an effort to unlock new growth opportunities in Latin America.
Located in Panama City, Panama, Flavor Infusion is a supplier of liquid and powder flavors, emulsions, beverage systems, juice bases, mixes, and other ingredients.
“We’re excited to open up new growth opportunities in Latin America and the Caribbean with the addition of FISA,” said Vince Macciocchi, president of ADM’s nutrition business.
Flavor Infusion International has two manufacturing facilities in the region, one in Panama and the other in Colombia.
Macciocchi expects the acquisition to represent another important bolt-on addition as ADM expands its capabilities in this high-value segment.
According to the ADM executive, the nutrition segment has been delivering profit growth of 15% to 20% a year, and the flavors business has been an important driver of that success, with annual sales growth of more than 10%.
Flavour Infusion is ADM’s second acquisition in the past few months. In early November, the company reached an agreement to acquire Deerland Probiotics & Enzymes.
The Kennesaw, Georgia -based Deerland is a supplier of probiotics, prebiotics and enzyme technologies.
Meanwhile, ADM recently announced that it has entered a new partnership with the Global Feed LCA Institute (GFLI), an independent animal nutrition and food industry institute.
Together, the two organizations said they will help to monitor and stimulate environmental performance in the animal nutrition industry, contributing to the creation of a more resilient and sustainable global food system.
ADM said the collaboration represents a significant step forward to further grow its animal nutrition business.
“As a member of GFLI, we look forward to embarking on this collaborative and fruitful partnership,” said Christophe Blondet, vice president, product development and applications in ADM’s Animal Nutrition segment.
“Together, we will contribute to the development of publicly available databases to better understand the environmental impact of feed materials and, ultimately, help shape a more sustainable animal nutrition industry.”
During its 2021 Global Investor Day, Archer Daniels Midland Co. (ADM) shared its plan to drive earnings growth to US$6 to US$7 per share by 2025.
The company’s five-year plan detailed several targets, including net incremental operating profit growth of US$1.2 billion, which translates to high single-digit percentage EPS growth from a normalized baseline of $4 to $4.50 per share to a new baseline of $6 to $7 by 2025.
ADM also is targeting growth across all three business units with operating profit of $1.25 billion to US$1.5 billion for Nutrition by 2025.
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