Cargill consolidates North American ingredients distribution network with six partners

636782140298617124blocks.jpg

19 Nov 2018 --- Cargill’s food ingredients and applications business has consolidated its ingredients distribution network in the US and Canada with six North American distribution partners – Univar Inc., Gillco Ingredients, International Food Products Corporation, Batory Foods, Pearson Sales Company and St. Charles Trading, Inc. The move seeks to optimize customer experience, streamline the supply chain and create a platform to generate sustainable growth through a select group of committed channel partners, according to Cargill. 

“In today’s rapidly changing marketplace, our customers need industry-leading distributor partners who can augment our in-house expertise with broad product portfolios for one-stop convenience, regulatory support, flexible lead times and minimum order quantities,” says Pat Rogers, Commercial Leader in Cargill’s North America food ingredients business. “We’re confident these partners can deliver on those expectations, bringing added value to our customers.”

Speaking to FoodIngredientsFirst, Tom Burns, Distribution Sales Manager, North America at Cargill, says: “This announcement covers many of our product lines, including starches, sweeteners, plant proteins, polyols, acidulants, hydrocolloids, emulsifiers, cocoa and chocolate, and edible oils.”   

“This distribution realignment will not include sugar and corn syrup, nor products from our Salt or Malt business units, or our Ardent Mills joint venture. “Nor will it pertain to some channel-to-market activities such as food service, confectionary or retail,” he confirms. 

“In selecting these six North American distribution partners, we considered geographic reach, category expertise, and their specific capabilities and competencies.”

The US and Canadian markets are ripe for formalized supplier/distributor partnerships. Suppliers seek strategic, transparent and highly competent channel partners that can improve the end-customer experience,” adds Burns.

“Beyond the consolidation that happens as part of normal merger and acquisition activity, it’s also possible we’ll see other food ingredient suppliers consolidate their distribution networks.”

The following six channel partners make up Cargill’s food ingredients distribution network:

•    Univar is to distribute a broad range of Cargill’s products, including starches, specialty sweeteners, texturizers, cocoa and chocolate, and edible vegetable oils and fats. Univar’s distribution agreement extends throughout the US and Canada.
•    Gillco is to continue its US distribution of Cargill products, with a focus on organic, label-friendly and specialty product lines.
•    International Food Products, an established player in the US dairy segment, is to continue to offer Cargill ingredients suited for those applications.
•    Longtime distributor partners Batory Foods, Pearson Sales Company and St. Charles Trading, Inc., will remain as authorized US distributors for those legacy Cargill food ingredient portfolios they have carried in the past.

In addition to these six core distributors, Cargill continues to support additional distributors for other channels such as food service, retail and confectionary chocolate.

“These six partners will be powerful contributors to our business, bringing improvements to our North American supply chain, e-commerce, technical service expertise and other components critical to our customers’ success,” Rogers continues. 

“By consolidating our regional distribution channels, our customers will be able to benefit from the unique strengths these distributors bring to the table,” she adds. 

To contact our editorial team please email us at editorial@cnsmedia.com

Related Articles

Food Ingredients News

Bitter yields: 2018 European drought impacts leading sugar producers

18 Jan 2019 --- The weaker sugar harvest of 2018, caused by drought in northern Europe, is weighing in on the market environment with the continent’s largest sugar producers reporting significant losses in the segment. The dip in revenues comes as the sugar sector is analyzing how to mitigate the effects of climate change with the threat of extreme weather events posing a risk to crops.

Food Ingredients News

Modest Mylk launches new category of concentrated “Nut Mylk” bases

18 Jan 2019 --- Dairy alternatives brand, Modest Mylk has launched a new product line-up of organic, gluten-free, preservative/stabilizer-free and vegan concentrated nut bases. According to the company, the range has been created with the mission to make nut-based dairy alternatives easier and healthier than ever, offering a solution to make fresh and delicious “Nut Mylk” at home.

Food Ingredients News

Yogurt culture: Danone North America launches low-fat Greek yogurt and almond milk yogurt alternative

18 Jan 2019 --- Danone North America has announced the launch of two individual yogurt lines that tap into both plant-based and sugar reduction trends. The first, coined Two Good Greek Lowfat Yogurt, is a dairy products line that touts indulgent taste, low calories and reduced sugar content. The second is Good Plants, a dairy-free, probiotic yogurt alternative, made with almond milk. Two Good will launch in February 2019, while Good Plants is already available.

Food Ingredients News

Azelis acquires Euroconsultant, expands meat ingredient distribution platform in Poland

18 Jan 2019 --- Distributor of specialty chemicals and food ingredients Azelis has acquired Euroconsultant Ltd., a Polish distributor of flavors, shelf life extenders and other products predominantly for the meat segment. The transaction is expected to be completed in the first quarter of this year.

Food Ingredients News

Weekly Roundup: Nestlé highlighted in Bloomberg Gender-Equality Index, Louis Dreyfus to exit dairy business by mid-year

18 Jan 2019 --- This week, Nestlé became part of the 2019 Bloomberg Gender-Equality Index (GEI), which distinguishes companies committed to transparency in gender reporting and advancing women’s equality in the workplace. Science and technology company Merck received a 2018 Life Science Industry Award for its “best use of social media.” Meanwhile, Louis Dreyfus is set to exit the dairy business by mid-2019 as part of strategic refocus on its core businesses, while Lindt & Sprüngli achieved solid sales growth and substantial market shares in 2018.

More Articles