Weekly Digest: Bunge and Corbion ink deal, Danone completes Yakult stake sale
29 Mar 2018 --- This week in business, Bunge issued its fourth progress report on the implementation of the company's zero deforestation commitment and Albania is on track to become one of the most virtuous countries in Europe for sustainable seafood. Elsewhere, Danone has announced this week, that it has sold a total of 24,600,000 shares of Yakult, representing €1.3 billion (US$1.6 billion).
Bunge has issued its fourth progress report on the implementation of the company's zero deforestation commitment. It outlines the strategy based on building Traceable Supply Chains, Tools for the Sustainable Expansion of Agriculture and Incentives for Engagement. Bunge currently has more than 90 percent traceability to direct sourcing farms in high priority areas and are monitoring more than 6,700 farms and 200 third party elevators and is committed to building value chains that are free of deforestation and human rights issues, traceable and trustworthy.
In brief: Other highlights
Last month, French multinational food products corporation Danone announced its plans to offload part of its 21.29 percent stake in Japan’s Yakult as part of its capital allocation strategy, at the same time as bolstering its collaboration in probiotics by signing a Memorandum of Understanding with the Japanese company. The company has announced that, as a successful outcome to the transaction previously communicated, it has sold a total of 24,600,000 shares of Yakult, representing €1.3 billion (US$1.6 billion), and corresponding to a valuation multiple of 39 times Yakult’s 2017 net income. In line with Danone’s capital allocation priorities, proceeds from the transaction will be used to continue on its deleveraging path and to invest in accelerating organic growth and maximizing efficiencies towards 2020 for sustainable value creation. As a result of the transaction, Danone’s stake in Yakult’s outstanding share capital is reduced from 21.29 percent to 6.61 percent.
Olam has secured medium-term financing facilities aggregating US$163 million from the Asian Development Bank and Japan International Cooperation Agency. Proceeds will be applied towards capital expenditure and permanent working capital requirements of the Company and COVL in Vietnam, Indonesia, Timor-Leste and Papua New Guinea. Earlier in the week, Olam secured a three-year sustainability-linked revolving credit facility aggregating US$500 million. Olam Treasury Pte Ltd., a subsidiary of Olam, is a co-borrower to the facility which marks Asia’s first sustainability-linked club loan. You can read the full article here.
Campden BRI’s method “Use of C-Cell to Measure Cell Structure of Baked Goods” has been accepted as an Approved Method by AACC International (AACCI), the leader in grain-based analytical methods for the food industry since 1922. The method will help bakers to objectively assess quality. Crumb structure characteristics of bread and other baked products are traditionally measured subjectively, but this new AACCI Approved Method uses the C-Cell digital imaging system to objectively characterize internal crumb structure characteristics. This could be used, for example, by bakers to measure their products against set specifications. Previously the method was only available to Campden BRI members, but it is now also available via subscription from AACCI as Approved Method 10-18.01.
And finally, Kerry Group announced details of a two-year partnership with Special Olympics that will include support for the 2019 Special Olympics Summer World Games in Abu Dhabi. As an Official Sponsor of Special Olympics, this new partnership will provide both organizations many opportunities to work better together to create more inclusive communities. Harnessing the Kerry spirit of opportunity, the program will focus on three areas; employee volunteering, employee fundraising and support for Special Olympics’ athlete leadership program. The partnership will initially involve Kerry employees from Ireland, Great Britain, Netherlands and Poland, with Kerry employees from across the globe having opportunities to get involved in supporting Special Olympics.
By Elizabeth Green
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