ADM completes Florida Chemical Company acquisition, adds “high-value citrus capabilities to its nutrition portfolio”
04 Mar 2019 --- Archer Daniels Midland Company (ADM) has completed its acquisition of Florida Chemical Company (FCC), one of the world’s largest natural citrus oils and ingredients manufacturers. With the completion of the transaction, ADM further strengthens its capabilities in supporting customers by providing citrus flavors and extending its abilities for manufacturing high-value flavor ingredients across all citrus varieties for flavor, fragrance and consumer products.
“Citrus is a key flavor for the beverage industry, and one of the essential flavors – along with vanilla and mint – in any complete solution portfolio for today’s evolving consumer needs,” says Vince Macciocchi, ADM Senior Vice President and President for Nutrition.
“By adding industry-leading citrus capabilities to ADM’s already best-in-class portfolio of natural, clean label ingredients, we can now provide one-stop shopping for essential flavors as well as an unparalleled array of other innovative food and beverage products, solutions and systems. And it’s all supported by our unmatched R&D capabilities, our global logistics network, and our steadfast commitment to the very best customer service,” Macciocchi explains.
Products in the ADM portfolio will include:
- Individual citrus flavor materials and essential oils, including customized flavor blends;
- Flavor enhancers for grapefruit and other citrus fruits; and;
- Citrus flavor modifiers specifically targeted to improve the quality and taste of food and beverages sweetened with natural or artificial sweeteners.
“FCC, a pioneer in the citrus flavor industry, grew into one of the largest producers in the world, creating 100 percent natural flavor ingredients for a wide range of food and beverage applications,” notes Josh Snively, ADM’s President, Global Citrus.
“Now, we are combining FCC’s 75-year heritage and deep understanding and expertise of the science and business of citrus with ADM’s extensive global resources to offer an even wider array of products, solutions and systems to more customers around the world.”
Founded in 1942, FCC has provided customers with premium citrus ingredients for more than three-quarters of a century. Based in Winter Haven, Florida, the company produces a wide range of high-value citrus flavor ingredients and formulated products primarily for the flavor, fragrance and consumer products markets.
As reported by FoodIngredientsFirst in January 2019, the acquisition of FCC, a division of Flotek Industries, was valued at approximately US$175 million. In connection with the sale of FCC, Flotek and ADM have entered into long-term reciprocal supply agreements. The first will secure Flotek's long-term supply of d-limonene, a chemical found in the peels of citrus fruits and in other plants.
Additionally, Flotek will manufacture differentiated chemistries for FCC’s industrial customers. Both companies will explore opportunities to jointly develop next-generation chemistry technologies for the oil, gas and agricultural industries.
Jackie Anderson, Manager, Global Media Relations, ADM told FoodIngredientsFirst at the time: “FCC is a perfect addition as we continue to grow the world’s leading nutrition company. FCC was a pioneer in the citrus flavor industry and is now one of the largest producers in the world, creating 100 percent natural flavor ingredients for a wide range of foods and beverages. Their 75-year heritage and deep understanding and expertise of the science and business of citrus makes them a perfect partner.”
The global citrus flavors market is estimated at more than US$8 billion and is anticipated to grow at close to 5 percent CAGR in between now and 2025, according to Anderson.
The move further cements ADM’s evolution towards more value-added ingredients beyond the company’s traditional commodity base. “With the acquisition of WILD in 2014, ADM began the journey to becoming the world’s leading nutrition company,” Macciocchi explains.
“Starting with the foundation of a leading global flavor company and our specialty ingredients portfolio, we have vastly expanded our capabilities with additions like the savory flavors of Eatem Foods, the plant proteins from Harvest Innovations, probiotics from Biopolis and Protexin, and Rodelle’s premium vanilla ingredients. The result is great for our customers and our shareholders,” he concludes.
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