Cargill consolidates North American ingredients distribution network with six partners

19 Nov 2018 --- Cargill’s food ingredients and applications business has consolidated its ingredients distribution network in the US and Canada with six North American distribution partners – Univar Inc., Gillco Ingredients, International Food Products Corporation, Batory Foods, Pearson Sales Company and St. Charles Trading, Inc. The move seeks to optimize customer experience, streamline the supply chain and create a platform to generate sustainable growth through a select group of committed channel partners, according to Cargill.

“In today’s rapidly changing marketplace, our customers need industry-leading distributor partners who can augment our in-house expertise with broad product portfolios for one-stop convenience, regulatory support, flexible lead times and minimum order quantities,” says Pat Rogers, Commercial Leader in Cargill’s North America food ingredients business. “We’re confident these partners can deliver on those expectations, bringing added value to our customers.”

Speaking to FoodIngredientsFirst, Tom Burns, Distribution Sales Manager, North America at Cargill, says: “This announcement covers many of our product lines, including starches, sweeteners, plant proteins, polyols, acidulants, hydrocolloids, emulsifiers, cocoa and chocolate, and edible oils.”   

“This distribution realignment will not include sugar and corn syrup, nor products from our Salt or Malt business units, or our Ardent Mills joint venture. “Nor will it pertain to some channel-to-market activities such as food service, confectionary or retail,” he confirms. 

“In selecting these six North American distribution partners, we considered geographic reach, category expertise, and their specific capabilities and competencies.”

The US and Canadian markets are ripe for formalized supplier/distributor partnerships. Suppliers seek strategic, transparent and highly competent channel partners that can improve the end-customer experience,” adds Burns.

“Beyond the consolidation that happens as part of normal merger and acquisition activity, it’s also possible we’ll see other food ingredient suppliers consolidate their distribution networks.”

The following six channel partners make up Cargill’s food ingredients distribution network:

•    Univar is to distribute a broad range of Cargill’s products, including starches, specialty sweeteners, texturizers, cocoa and chocolate, and edible vegetable oils and fats. Univar’s distribution agreement extends throughout the US and Canada.
•    Gillco is to continue its US distribution of Cargill products, with a focus on organic, label-friendly and specialty product lines.
•    International Food Products, an established player in the US dairy segment, is to continue to offer Cargill ingredients suited for those applications.
•    Longtime distributor partners Batory Foods, Pearson Sales Company and St. Charles Trading, Inc., will remain as authorized US distributors for those legacy Cargill food ingredient portfolios they have carried in the past.

In addition to these six core distributors, Cargill continues to support additional distributors for other channels such as food service, retail and confectionary chocolate.

“These six partners will be powerful contributors to our business, bringing improvements to our North American supply chain, e-commerce, technical service expertise and other components critical to our customers’ success,” Rogers continues. 

“By consolidating our regional distribution channels, our customers will be able to benefit from the unique strengths these distributors bring to the table,” she adds.