ADM on Hunt for “Similar Type Acquisitions” to Caterina
19 Oct 2016 --- Archer Daniels Midland (ADM) is on the hunt for further acquisitions in the specialist plant protein category, following its recent purchase of US healthy pasta maker Caterina Foods, according to one of its top executives.
Speaking to FoodIngredientsFirst, Barry Nadler, President of ADM-owned Harvest Innovations, part of its Wild Flavors & Specialty Ingredients business, said that ADM is looking at "similar type acquisitions [to Caterina] where you would have a product that plant proteins can be delivered in different formats”.
Earlier this month, ADM acquired Caterina, the Illinois-based private label business which makes gluten-free and high-protein pastas and is an existing toll processor for Harvest Innovations.
The acquisition is part of the Chicago-based food processing giant’s move to position itself to better meet the demands of consumers demanding healthier foods.
Nadler said the majority of the 60 Caterina employees would remain with the business and that the acquisition was driven by the broad appeal of plant protein beyond pasta.
Commenting on the gluten-free and non-wheat pasta industry, Nadler said: “It is a big trend. It is a billion dollar industry in the United States. But this acquisition is not being driven by the fact that gluten-free continues to be a strong trend not only in the US but around the world.”
“It is also a way for us to deliver plant protein to people in a form that is a food source that people like to eat.”
“Pasta is very popular. But you can use this product to deliver other plant proteins such as lentils and chick peas and beans and all those type of things that provide good protein and fiber to the population.”
“And we are also doing excellent work in creating new non-allergenic proteins that can be introduced and sold through the pasta as well. So it's not just the gluten -free market it is really a mechanism to deliver plant proteins to people.”
Earlier this year, ADM purchased a controlling stake in Harvest Innovations, a producer of minimally processed, expeller-pressed soy proteins, oils and gluten-free ingredients.
Its products range from non-G.M.O. soy chips, expeller-pressed soy flour and textured vegetable protein, to the industry’s only organic soy crisps, to gluten-free flours and pastas.
By now purchasing Caterina, ADM controls all its processes though to the end customer.
In 2014, ADM announced its biggest acquisition ever, after it agreed to buy Swiss food-ingredients maker Wild Flavors GmbH for $3 billion to protect itself from volatile crop prices.
The acquisition moved ADM further into the business of designing ingredients for products like protein drinks and nut bars.
ADM’s ingredients business generates around $2.5bn in annual sales and is largely geared around its US food products.
by John Reynolds
