Cambridge Commodities acquires ingredient business of US wholesaler Earth Circle Organics
19 Jul 2018 --- UK-based ingredient supplier Cambridge Commodities has acquired the ingredient business of US wholesaler Earth Circle Organics LLC, for an undisclosed sum. Following the acquisition, Earth Circle Organics’ raw and organic superfood ingredient business will merge with the US arm of Cambridge Commodities to create a new division, operating as Earth Circle Ingredients.
The deal will provide Earth Circle Ingredients with access to Cambridge Commodities’ approved supplier base for over 2500 nutritional ingredients, its new product development expertise and its technical teams. This will allow Earth Circle Ingredients to expand its stock holding from raw and organic superfoods to include vegan and dairy proteins, natural extracts, and fruit and vegetable powders, according to the company.
Neil Hammill, Commercial Director of the Cambridge Commodities Group, comments: “We are delighted to welcome the talented team at Earth Circle into the Cambridge Commodities family. This venture brings a solid infrastructure to our business operations in the States. Under the Earth Circle Ingredients brand, we look forward to supplying customers with quality nutritional ingredients and healthier innovation to support wellbeing in the US and the rest of the world.”
Speaking to FoodIngredientsFirst, Ian Mitchell, Financial Director of Cambridge Commodities says: “The aim is to double the size of the business in the next four years through both organic growth and by acquisition. We are aiming to have a US$50 million turnover business in the US in five years.”
“Demand for plant-based ingredients continues to rise alongside consumer expectations. Cambridge Commodities has seen an increase of almost 300 percent in vegan-specific ingredient sales in the past three years,” he continues. “Digestive health is becoming more important with rising consumer awareness of the microbiome and its impact on overall health.”
Cambridge Commodities
“Sustainability and ethical sourcing are becoming more and more important to our customers as consumer demand for transparency of raw ingredients increases. We have seen a rise in demand for plant-based marine ingredients, such as seaweeds and algae, due to their nutritious and versatile nature and their eco-friendly story which resonates with consumers.”
“The EU and USA are the two largest markets for nutritional ingredients in the world and it makes sense for us to have a presence in both markets. The weakness of sterling means in financial terms alone it is one of worst times to invest in the US in recent history, but it was the right time for the business and we are confident about making the acquisition a success,” he explains.
“The personalization trend is affecting several industries within nutrition; products are becoming more segmented to individual needs with more niche positioning’s. With advances in technology and the mainstreaming of connected appliances, we expect to see deeper levels of personalization across the health and wellbeing industries.”
“Customers should benefit from day one due to the increased portfolio of products and strengthened supply chain,” Mitchell adds.
Earth Circle Ingredients’ head office will be in Northern California, US, with warehousing facilities on the East and West coasts.
CEO at Earth Circle Ingredients Keith Bearden, who brings over 20 years’ experience in food and beverage to the company, says: “Using Cambridge Commodities’ approved supply chain, we are increasing our stock lines, which means that we can provide exciting ingredients, great quality and product innovation to our customers.”
Cambridge Commodities is celebrating its 20th year of supplying quality nutritional ingredients to the sports nutrition, health and wellbeing, nutraceutical and animal nutrition industries in the US and Europe. In recent years, the company has been recognized for its rapid European sales growth, ranking in the HSBC Sunday Times International Track 200 for the fourth consecutive year in 2018. Over this period, Cambridge Commodities has seen a 36.4 percent rise in annual turnover from US$35m in 2014 to US$55m in 2018.
By Elizabeth Green
