Cargill expands with acquisition of meat plants from Ahold Delhaize

USA – US agri-food giant Cargill has acquired two meat processing facilities from retail giant Ahold Delhaize in a move aimed at expanding its production and distribution of supermarket case-ready beef and pork in the northeastern part of the United States.

While the financial details of the deal were not disclosed, the acquired meat processing plants are located in North Kingstown, Rhode Island, and Camp Hill, Pennsylvania.

Cargill expressed its intention to continue supplying own-label products to Ahold Delhaize in the northeast while also expanding its case-ready production and distribution capabilities from the newly acquired plants to additional retailers.

Infinity Meat Solutions, a subsidiary of Ahold Delhaize USA, has an existing partnership with Cargill, and the agri-food company already has staff working at both facilities.

The ongoing collaboration involves Cargill producing packaged ground beef and pork, muscle cuts, as well as value-added products such as seasoned, marinated, and breaded meats for Ahold Delhaize’s US grocery store chains, including Food Lion, Giant Food, and Stop & Shop.

“With this investment, we look forward to our continued partnership with Ahold Delhaize USA companies while bringing additional high-quality case-ready products to new retail customers,” Hans Kabat, President of Cargill’s North American protein business, stated.

The move is seen as a strategic effort to meet the growing consumer demand for convenient and affordable protein options in the US market.

Ahold Delhaize USA’s CEO, JJ Fleeman, explained that the decision to sell these facilities aligns with the company’s focus on being leading omnichannel grocery retailers in their markets.

 By entrusting the facilities to Cargill, a company specializing in meat production, Ahold Delhaize aims to continue providing quality products to its brands’ customers while increasing its focus on omnichannel retail.

Cargill, a 158-year-old company, reported US$177 billion in revenues in its fiscal year 2023, marking a 7% increase from the previous year and the highest ever for the company.

The acquisition is expected to strengthen Cargill’s position in the meat processing and distribution sector, enhancing its ability to meet the evolving demands of US consumers.

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. HERE