ADM swoops for UK flavor house as acquisition activity gathers pace

20 Dec 2023 --- ADM has agreed to acquire UK-based FDL, a developer and producer of premium flavor and functional ingredient systems. The acquisition is subject to customary closing conditions. ADM intends to complete the transaction by the end of January 2024. 

This latest announcement follows a string of investments and acquisitions for ADM as we near the end of 2023. The company is looking to bolster its global flavor capacity as it builds its reputation as a global player in nutrition.

With projected 2023 sales of approximately US$120 million, FDL operates three production facilities and two customer innovation centers, all in the UK.

The company has created over 10,000 proprietary flavor formulations that enable accelerated speed to market. FDL’s customers span channels and include a noticeable presence in the US$900 billion European foodservice segment.

Speed to market
Speaking to Food Ingredients First, Calvin McEvoy, president of Global Flavors at ADM, says that similar to ADM’s approach, the FDL innovation teams accelerate speed to market by looking at broad portfolios of ingredients to create market-ready formulations.

“The addition of these diverse and premium flavors and systems to ADM’s portfolio will support and broaden our scope and the customers we serve in Europe, which includes the opportunity to expand further into foodservice.”

“Producing more than 10,000 proprietary flavor formulations, FDL’s knowledge and capabilities are moving the needle in what’s possible for flavor innovation,” he explains, adding that “we’re dedicated to building upon our global leadership in nutrition and growing our pantry of flavor ingredients and solutions is core to that effort.”ADM continues to add to its broad portfolio of flavor ingredients and solutions as it builds a global player in nutrition.

String of investments
McEvoy believes that flavor is “at the crux of all foods, beverages and dietary supplements.”

Since acquiring WILD Flavors in 2014, ADM has added multiple new offerings to its flavors portfolio through acquisitions, including dairy via the announcement of Revela Foods, savory via Eatem Foods, citrus via Florida Chemical Company and Erich Ziegler Citrus and vanilla via Rodelle.

The company has also expanded its flavors capabilities globally with acquisitions like Flavor Infusion South America, organic investments like its Pinghu, China, flavor production facility and the expansion of its Berlin, Germany, flavor facility. It also boasts a growing network of innovation centers spanning Europe, Asia, Latin America and North America.

Staying on trend
In addition to key investments and acquisitions, McEvoy says that the company’s expert flavorists, food scientists and insights team monitor ongoing trends to ensure its customers are swiftly delivering on current and emerging preferences.

This focus combines with ADM’s vast flavors portfolio and wider ingredient library, formulation expertise and cutting-edge technologies for crucial production and commercialization optimization.

Further, as technologies such as AI integrate into flavor and product development processes now and in the years ahead, ADM’s flavorists are leveraging this technology and bringing new flavors to the forefront.

Notably, global demand for flavors is expected to grow to US$21 billion in 2027, according to McEvoy. “We’re continuing to expand our portfolio to ensure we remain the partner of choice for our customers in this growing segment.”

Eric Beatty, CEO of FDL, adds: “ADM is an ideal partner for us, with global nutrition and flavor capabilities that will provide new opportunities to strengthen FDL’s portfolio of taste and nutrition solutions.”

“The FDL team looks forward to helping add to ADM’s broad offerings with our diverse portfolio of flavor and functional ingredient systems, IP and capabilities, as well as the entrepreneurial spirit and innovativeness of human talent that has enabled FDL to become a differentiated market leader today.”

By Elizabeth Green

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