Marfrig and ADM plant-based JV to explore “exploding demand for alternative proteins”
28 May 2020 --- Major beef producer, Marfrig, and global nutrition company ADM are joining forces to create PlantPlus Foods, a joint venture for the sale of plant-based food products across South American and North American markets. The two companies already work together developing and producing sustainable, plant-based foods in South America. But now, the PlantPlus Foods venture will expand the portfolio.
Marfrig will initially own 70 percent of PlantPlus Foods, with ADM owning 30 percent. Marfrig will be responsible for production and distribution, utilizing its facilities in South America, mainly in Várzea Grande, in the Brazilian state of Mato Grosso, and its facilities in the US.
ADM will supply technical expertise, application development and an array of plant-based ingredients, flavors and systems from its specialty protein complex in Campo Grande, Mato Grosso do Sul, and its network of US-based ingredient and flavor facilities, including its new pea protein plant in Enderlin, North Dakota.
“Marfrig’s production and distribution capacity and its experience and know-how in working with high-quality meat, combined with ADM’s technical and development excellence and its industry-leading plant-based ingredient and natural flavors portfolio, will provide our new joint venture unparalleled scale and singular expertise for offering plant-based products of the highest quality,” says Marcos Molina, Founder and Chairman, Marfrig.
ADM’s complete portfolio of ingredients, flavors and solutions from nature are a foundation for innovative, sustainable foods – including alternative proteins – around the world,” according to ADM Chairman and CEO Juan Luciano.
“Over the last several years, we’ve invested strategically to build strong leadership positions in fast-growing trend areas. Now, by expanding our relationship with Marfrig, we’re taking the next step in meeting exploding consumer demand for alternative proteins,” he notes.
The joint venture will primarily focus on North and South America, though it will have the ability to serve customers in other global markets.
“Consumers today are thinking about food in new ways, with the knowledge that delicious burgers and more can come from a variety of sources, including plants,” adds Leticia Gonçalves, ADM’s President, Global Specialty Ingredients.
“We’re proud to supply major consumer product customers around the globe, including through our ADM Nutrition Solutions platform in Brazil, with a complete pantry of ingredients, flavors and solutions to meet their individual needs. And now, PlantPlus Foods will add to our capabilities, expanding our leadership position in a key growth market,” she says.
Marfrig manages 13 production units in Brazil, which produce ready-to-eat products such as canned beef, beef jerky, sauces and sachets. These products are sold in the domestic market through the retail, wholesale and foodservice channels and exported to around 100 countries. Marfrig also has five production units in Argentina, where it is a major player in the production and sale of beef patties.
The two companies will continue serving existing customers independently, supporting the sustainable development of the industry.
Marfrig and ADM plan to launch the new company and start operations as soon as required regulatory approvals have been received.
Edited by Gaynor Selby
