ADM snaps up Serbian Sojaprotein to expand non-GMO, European plant proteins
27 Jul 2021 --- ADM has agreed to acquire Sojaprotein – a European provider of high-value soy ingredients – to expand its plant protein production capacity and customer base.
The Serbian company is the largest producer of plant-based proteins in Southern Europe and offers a wide array of exclusively non-GMO vegetable protein ingredients. Applications expand from confectionery to pharmaceutical categories, but ADM’s main focus of this acquisition will be meat alternatives.
“With our acquisition of Sojaprotein, we are able to meet our customer’s need for non-GMO soy proteins that are locally sourced in Europe. This is an essential expansion of our capabilities to fill a growing market demand” Allyson Fish, president of alternative proteins at ADM, tells FoodIngredientsFirst.
“We can also better serve our customers while reducing the need to ship non-GMO soy across the Atlantic.”
The majority of Europeans try to avoid GMOs in their food with 72 percent of EU consumers looking for non-GMO claims when buying foods, beverages and supplements, she notes.
“With soy’s wide-ranging functionality across many different application categories, we expect this acquisition will help further product development in a variety of plant-based offerings.”
Cash crop
With Sojaprotein’s reach into 65 countries and over US$100 million in sales in 2020, the move is touted as another feather in the cap for ADM as it expands to meet global demand for plant-based proteins.
“Alternative proteins represent one of our core growth platforms. And as this US$10 billion global industry grows to US$30 billion over the next decade, we are investing to expand our capabilities,” says Leticia Gonçalves, ADM’s president of global foods.
ADM’s acquisition of Sojaprotein will expand the reach of non-GMO Serbian soy products.Financial details of the agreement have not been disclosed. The purchase agreement was signed with the Parent Victoria Group under which Sojaprotein operates. Completion of the transaction is expected after obtaining the approval of regulatory bodies.
Expounding on premium plant-based
The agreement will bring together ADM’s global footprint, consumer insights and technologies to Sojaprotein’s network of customers, helping meet the need for nutritious and responsible plant-based F&B.
“Consumers today are looking for more from their foods and drinks – they want great-tasting products and sustainable sources of proteins,” adds Gonçalves.
“High-value soy proteins and the quality of Sojaprotein’s products recognized by a wide network of European and worldwide customers fit perfectly into our portfolio.”
Power of provenance
The companies will work together to meet the fast-growing demand of European consumers who prioritize locally sourced, non-GMO ingredients in their food and beverages.
Fish notes that 59 percent of European consumers who have changed their diets to lead a more sustainable lifestyle say they have turned to more local food and drinks.
“We believe in further expansion and even better positioning of products from Serbian non-GMO soy for customers around the world,” notes Gonçalves.
Since its founding in 1977, Sojaprotein has grown its products locally with strict control of origin and quality.
Touting Serbian soyADM’s interest in Sojaprotein followed new investments and sales abroad that Sojaprotein made in the past two years to build the company.
With the agreement, Stefan Babović, chief operations officer of Victoria Group, observes that Serbian soy will become available to new customers around the globe.
“Sojaprotein is entering a new phase of its development and further growth. The arrival of a world-renowned strategic investor is a great compliment for Serbia and our agri-food sector,” he says.
ADM expects the plant-based global market to triple in value within the next decade.
“This is global confirmation of our non-GMO soybean products’ world-class quality,” affirms Aleksandar Kostić, vice president of MK Group, the majority owner of Sojaprotein.
MK Group is a South-East Europe investment group that invests in agri-food, among other sectors, to create value throughout the value chain.
Expanding capabilities worldwide
The agreed-upon acquisition builds on ADM’s investments in alternative proteins. Bringing Sojaprotein on board allows us to continue to build upon our 60-plus years of work with soy protein, says Fish.
“We continue to put plans in place to diversify our overall protein portfolio to meet the dynamic trends and evolving needs of our customers. For instance, in Europe, the Middle East and Africa (EMEA), we now have locally sourced soy and wheat proteins available,” she affirms.
In 2014, the company announced a US$250 million investment in a soy protein complex in Brazil as well as a pea protein plant in Enderlin, North Dakota, US in 2018.
Further, ADM recently revealed its PlantPlus Foods joint venture with Marfrig to sell plant-based foods in South and North America.
The company has also created partnerships with protein-focused start-ups such as Air Protein.
Gonçalves adds that ADM is in a “unique” position to meet plant-based demand with its global, integrated value chain, which stretches from the farm gate to the dinner table, and its portfolio of ingredients and solutions.
“As today’s announcement demonstrates, we’re not content to stop there. We’re focused on continued growth.”
By Missy Green
