SOUTH AFRICA – American multinational food processing and commodities trading corporation, ADM, has fully acquired South Africa based flavour distribution company, Comhan, in a bid to strengthen its flavour capabilities and reach in the African market.

The acquisition brings together ADM’s 80 years of experience in the flavour industry and Comhan’s unique market insight to generate innovative products that cater to local tastes and interests.

Despite, Comhan currently focusing on beverages, the giant food ingredients and flavour maker, plans to grow the distribution capabilities to include food and savory products.

The deal will also open up opportunities for ADM’s customers in the region and build on the capabilities of its existing offices in Nigeria and Kenya.

“This acquisition marks a very exciting moment for ADM, as we continue to develop our nutrition business in key growth markets, including Africa.

“At ADM we believe it is critical to invest in flavour creation assets globally to extend production and supply chains, making it easier to get unique and consumer-preferred flavours to local customers,” said Calvin McEvoy, president of global beverages at ADM.

Welcoming Comhan into ADM’s portfolio comes together with other recent investments in alternative flavour production, including the company’s recent state-of-the-art facilities in Pinghu, China and Berlin, Germany and acquisition of strategic operations in USA.

The 27,000+ square meter Pinghu facility features the latest in automated flavour lines with advanced dosing technology, along with technologies to ensure seamless and efficient management of complex processes.

Also, it is fashioned with labs dedicated to flavour production, taste design and product development; and capability to meet demand for specific dietary needs, including Halal and Kosher suitable products.

Meanwhile beginning of the year, the multinational company acquired Flavour Infusion International SA in an effort to unlock new growth opportunities in Latin America.

 Located in Panama City, Panama, Flavour Infusion is a supplier of liquid and powder flavours, emulsions, beverage systems, juice bases, mixes, and other ingredients. 

The deal represents another important bolt-on addition as ADM expands its capabilities in this high-value segment.

Following the recent moves, ADM strategically positions itself to maximize on the projected growth in food ingredients market which is anticipated to reach US$19.22 billion by 2030 growing at a CARG of 3.6% from US$12.71 billion in 2020.

The African market is particularly lucrative as Mordor Intelligence expects the sector to register a CAGR of 6.18% between 2021 – 2026.

This has led to global players such as Kerry to extend their base in the region with its recent acquisition of Rwanda based Afribon company.

 Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. SUBSCRIBE HERE