ADM acquires Brazilian botanical extract manufacturer Yerbalatina

08 Jan 2020 --- ADM has acquired Yerbalatina Phytoactives, a Brazilian plant-based extracts and ingredients manufacturer. The move is a bid to enhance ADM’s portfolio of ingredients from natural sources that bolster health, to stay abreast of trends in health and wellness. ADM’s increasing expansion since 2017 into this space is a direct response to the growing consumer demand for fortified foods, beverages and supplements. This acquisition expands ADM’s already significant footprint in Brazil.

"Consumers are seeking out products that deliver functional benefits, which can help them achieve their wellness goals. This desire for high function is fueling fortified foods and the development of new products with ingredients that can deliver new benefits or more functional efficacy," Sam Minardi, Vice President of Marketing for Human Nutrition, North America tells FoodIngredientsFirst.

“Yerbalatina’s wide array of natural botanical extracts – including organic-certified ingredients – combined with their R&D capabilities and market expertise, are exciting additions to our pantry as we continue to build our leadership position in science-based microbiome solutions for human and animal health,” says Vikram Luthar, President of ADM’s Health & Wellness business.

“More and more consumers are turning to foods and supplements to help enhance health and wellness, and we are continuing to build a leadership position in that important market segment,” says Vince Macciocchi, President of ADM’s Nutrition business.

“The global retail market for foods, beverages and supplements that support health and wellness is estimated at US$750 billion, and growing. From prebiotics and probiotics to enzymes, botanical extracts, and nutritional oils, the breadth and depth of our expertise and our portfolio ensures that our customers have everything they need to lead in this space. The addition of Yerbalatina represents yet another tool in our portfolio as we continue to unlock the power of nature to enrich the quality of life,” he continues.

Cool-drying technology by Yerbalatina transforms fruits and vegetables into organic powders, colors and extracts. Yerbalatina uses proprietary cool-drying technology to transform fruits, vegetables and other plants – such as acerola, acai, guarana and green coffee – into a wide variety of extracts and ingredients for customers in the food, beverage and health industries. Its range of more than 100 botanical products and solutions includes functional nutrition and health ingredients, organic food colorings, organic powdered fruits, organic vegetable milks and organic nutritional extracts.

"Standardized plant extracts such as acerola and green coffee are on-trend ingredients that deliver known amounts of key bioactive compounds found in nature. There is a large body of scientific evidence that supports the health benefits associated with these compounds," says Julio Lopez, Business Manager, Botanical Extracts at ADM. "The acerola fruit is one of the highest natural sources of Vitamin C (ascorbic acid), an essential nutrient. Our acerola extract is mostly used in beverages, supplements, baked goods and meat applications. Our green coffee provides a natural-source of caffeine, and it’s mostly used in beverages, specifically, in energy drinks," he adds. 

The company operates an extensive human and animal nutrition business, including an alternative protein production complex in Campo Grande; beverage extracts, bases and compounds production in Manaus and Uberlândia; and 13 animal nutrition facilities. In addition, ADM processes oilseeds at eight locations across Brazil, producing meal and renewable biodiesel, as well as a significant portfolio of consumer oils under the Concordia, Corcovado, ABC and Vitaliv brands.

Timeline of investments:

2017
• Acquisition of Biopolis, a European innovator in probiotics and other health-promoting microbial technologies.

• Collaboration with Mayo Clinic to investigate microbial solutions to improve health and wellness.

2018
• Acquisition of Protexin, a company specializing in natural healthcare and probiotic supplements for human, pet and production-animal use.

• Joint development agreement with Vland Biotech to develop and commercialize animal health enzymes.

• New enzyme lab in Davis, California.

2020
• Acquisition of Yerbalatina Phytoactives.

In other sectors, ADM recently expanded its starch reach in the Canadian market through a partnership with IMCD. Last year, the company also rounded out its confectionery offerings through the acquisition of Rodelle, a vanilla supplier, and Florida Chemical Company (FCC) which provides citrus oils. 

Edited by Missy Green