ADM-Marfrig partnership to roll out plant-based burger patties in Brazil

08 Aug 2019 --- Marfrig Global Foods, Brazil’s second largest food processor, has entered into an agreement with US-based Archer Daniels Midland Company (ADM), for the production and sale of vegetable protein-based burger patties in Brazil. The first plant-based burgers will reach the Brazilian market by the end of this year with exports to follow. The vegan products will be supplied to food service clients initially with retail channels to follow, note the companies.

Under the new deal, the companies will work together to develop plant-based products, with ADM responsible for supplying the primary raw material used in the process, while Marfrig produces, distributes and sells the products in Brazillian food service and retail channels. Marfrig will launch a specific brand for its plant-based products.

The production of plant-based burgers in Brazil will be launched at Marfrig’s unit in Várzea Grande, Mato Grosso. Part of the plant-based raw materials will be shipped directly from ADM’s plant in Campo Grande to Marfrig’s plant.

“Together, Marfrig and ADM will produce 100 percent vegetable protein-based burgers with the same taste and texture of beef. We want to give consumers the power of choice. They are the ones who decide,” says Eduardo Miron, CEO of Marfrig Global Foods. “The plant-based burgers will complement Marfrig’s product portfolio and be distributed through all our market channels.”

“We offer an advanced R&D structure, natural ingredients and technological solutions, including the advantage of local manufacturing, to anticipate industry trends and meet our clients’ needs with customized service,” adds Roberto Ciciliano, CEO of ADM Nutrition in Latin America.

The growth in plant-based foods comes at a time when consumer demand for meat-free products is at an all-time high. There are huge opportunities in this space as sustainability, ethically-driven and environmentally sound purchasing decisions are becoming increasingly significant. The growth in plant-based NPD is also promoted as mitigating the environmental impacts associated with meat production, specifically the livestock sector. And this is one reason why many companies are “greening-up” their portfolios. 

Innova Market Insights data shows that meat substitutes accounted for 11 percent of new meat product launches (meat, poultry and meat substitutes) reported in Europe in 2018, up from 9 percent in 2013. The global picture shows stronger growth, with 14 percent of meat launches in 2018 being meat alternatives, compared to 6 percent in 2013.

By contrast, Marfrig has also been ramping up production in the meat sector. In June, the company announced its tie-up with Brazillian heavyweight meatpacker BRF. This will allow the companies to create “a world leader in the protein market with wide geographical and product diversification,” according to separate filings. Under the new deal, shareholders of BRF would assume 85 percent equity ownership and Marfrig would cover 15 percent. In 2018, the firms’ combined net revenues were estimated at around BRL 76 billion (US$19.4 billion).

Developing on-trend plant-based solutions for texture and taste
At the IFFA 2019 trade show held in Frankfurt, Germany (May 4-9), ADM showcased the brand’s new Arcon range, marketed as high-quality functional soya concentrates with a protein content of at least 67 percent. The Arcon range is said to offer a clean taste and a natural light color and is suitable for “countless meat applications.”

ADM has developed vegan solutions based on the company’s Textura fibrous soya ingredient, in combination with the Arcon T textured soya concentrate range. In combination with Arcon T, Textura will create a “fibrous structure” and other attributes of original meat products without compromising on taste and texture. 

By Benjamin Ferrer