Ever heard of a “flavor system”? You will now, since one of the country’s largest food processors just bought a company dedicated to them.
Archer Daniels Midland (ADM) is acquiring WILD Flavors GmbH, the flavor company that owns the lunch-box drink Capri Sun, for €2.2 billion. The acquisition is ADM’s biggest, and CEO Patricia Woertz says WILD Flavor’s network of 3,000 customers will help the food-processing company’s reach expand.
“Natural flavor and ingredients is one of the largest and fastest-growing consumer trends in both developed and emerging markets,” said Woertz, “and WILD Flavors is the world’s leading provider of natural flavor systems to the food and beverage industry.”
WILD Flavors offers food companies like ADM what they call “flavor systems,” or flavor solutions made from fruit juice concentrates and blends. With over 400 scientists working on making flavorings, the company’s site lists a few concept flavors that might blow your mind. With flavors combinations such as “Ethnic Flavor profiles”, “Vegeceuticals”, “Farmstand Favorites” and even music themed flavors like “Natural Jazz Berry Flavor” and even “Natural Gin & Juice Type Flavor” (nope, we’re not kidding), the company says its aim is to develop products that “meet and exceed consumer requirements, needs and concerns…on time, and on trend.”
Woertz says the company’s acquisition falls in line with ADM’s long-term goal to diversify the company’s processed crops, and expand their product portfolio.
“It complements the ingredient, organic-growth investments we’ve recently made—including our Brazil protein complex and soluble-fiber expansion in China,” Woertz said. “And it is consistent with actions we’ve taken to dampen the volatility of our earnings mix and deliver on our commitment to profitable growth. The acquisition will meet our return objectives, with estimated cost and revenue synergies of €100 million by year three.”
ADM outbid the Japanese food and chemical corporation, Ajinomoto Co., for WILD Flavors, and according to Bloomberg, “the takeover will help the world’s top corn crusher diversify away from grain processing and gain a bigger foothold in overseas markets for food and drink made with more natural raw materials.”
The transaction is contingent on regulatory approvals, and is expected to close by the year’s end.
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FEATURED PHOTO: BlogHer