Weekly Roundup: ADM acquires Comhan, FoodDocs net funding for AI-generated food safety compliance

11 Feb 2022 --- This week in industry news, FoodDocs raised funds for AI-powered food safety compliance solutions while Bacardi pledged to cut greenhouse gas (GHG) emissions by 50% by 2025. Protium and Petrofac plan to explore green hydrogen technology with meat-free brand Quorn. Meanwhile, Barry Callebaut was registered on the Carbon Disclosure Project’s (CDP) Supplier Engagement Leaderboard for the fourth year running.

Acquisitions
Producer of savory ingredients, Solina, a producer of savory ingredients, acquired Den norske Kryddermølle. Based in Larvik, Norway the company runs a dry blending plant for meat, ready meal, snack industries and foodservice operators. The acquisition represents a further step in the expansion strategy following the acquisitions of Dutch food coating expert Food compounds and US spice expert Asenzya in 2021.

Service provider in specialty chemicals and food ingredients, Azelis acquired 100% of the shares of Tunçkaya, a distributor of food ingredients and additives in Turkey. The move strengthens the company’s position in the fast-growing Turkish market for food and broader life sciences market. Tunçkaya’s portfolio of products complements the group’s lateral value chain for the domestic market.

ADM acquired Comhan, a South African flavor distributor. ADM has worked with the company for several years and will now provide customers with direct access to its extensive portfolio and expert network. The acquisition strengthens ADM’s flavor capabilities and expands its footprint African market growth.

In brief: Scientific studiesEnergy drink consumption among teenagers is at at all time high.
A new BMJ Open study commissioned by the UK government shows that up to a third of under-16s consume at least one energy drink a week, while others are drinking them daily. The study was commissioned to address concerns about children’s consumption of caffeinated energy drinks and its effects on health and behavior. Nine databases were searched for systematic reviews. The researcher included 15 systematic reviews – six reported drinking prevalence and 14 reported associations between drinking and health or behavior. Worldwide, between 13% and 67% of children consumed energy drinks in the past year. Two of the studies reviewed were UK-based.

A multi-country outbreak of salmonella enteritidis sequence type (ST) 11 infections linked to eggs and egg products has been reported. The outbreak was first detected in France in September 2021 and by January 2022 there were 272 confirmed cases, recorded in five European Union/European Economic Area (EU/EEA) countries including Denmark (n=3), France (n=216), the Netherlands (n=12), Norway (n=7), Spain (n=22), and the UK (n=12). Two deaths of adult males were recorded. Twenty-five people were hospitalized while 60. Sixty people reported having consumed eggs or egg products.

In brief: Business moves
FoodDocs raised £1.8 million (US$2 million) to solve food safety compliance issues with the help of AI to “alleviate the bureaucratic nature” of food safety rules compliance. The funding is led by Bonnier Ventures, along with Forward Venture Capital, Spring Capital and United Angels. The funds will be used to continue strategic growth, drive expansion in the US and the UK and improve AI capabilities.

KaTech Ingredient Solutions invested in high-tech machinery for its existing operating pilot plant in Lübeck, Germany that enables its technical teams to replicate industrial processes and develop textural ingredient solutions for meat and fish alternative products. The newly acquired machinery is particularly relevant for the production of meat and fish alternatives. The investment supports the company’s strategy to continue to focus on plant-based products.

African Export-Import Bank (Afreximbank) invested in Mauritanian FMCG company TND SA via its development impact-oriented subsidiary, the Fund for Export Development in Africa (FEDA). The investment will help to diversify TND's business beyond importation to include integrated manufacturing of dairy and poultry products, in a bid to replace imports with locally-produced foods. Given Mauritania’s reliance on imports for its food needs, the investment presents an opportunity to develop local manufacturing capacity, positively impacting the balance of trade and promote industrialization along the value chain.

In brief: Sustainability effortsBacardi aims to slash GHG emissions by 50% by 2025.
Premium rum brand Bacardi will cut its GHG emissions by 50% in 2023 when a Combined Heat & Power (CHP) system goes live at the brand’s distillery in Puerto Rico. The system will replace heavy fuel oil with propane gas, a cleaner and more efficient energy solution. The GHG reduction represents a 14% cut in the total emissions globally, towards the 50% cut the company is committed to achieving globally by 2025.

UK-based green hydrogen energy services company, Protium and its consortium partner, Petrofac, will explore the deployment of green hydrogen technology with meat-free company Quorn. The companies will assess how the introduction of dual-fuel boilers, combusting both hydrogen and natural gas blend can meet their expanding production capacity. Located close to Quorn’s Belasis production facility in Billingham, Protium and Petrofac will explore the feasibility of supplying green hydrogen via a pipeline as part of Protium’s green hydrogen project in Teesside.

Australian manufacturing performance software company, OFS debuted in the US as the result of a deal with Oregon-based craft brewery, Pelican Brewing Company. The craft brewer looked for a software solution to provide better insights to help it identify and resolve issues, improve efficiency, and reduce waste. With three breweries and brewpubs along the coast near Portland, Pelican produces up to 50,000 barrels – equivalent to almost six million liters or 14 million schooners annually. The company makes beer on demand for its retail and consumer customers.

In brief: Recognitions
Barry Callebaut has for the fourth consecutive year earned a place on the Carbon Disclosure Project’s (CDP) Supplier Engagement Leaderboard. The recognition places the company in the top 8% of companies who disclosed their environmental data through CDP in 2021. The accolade comes on the back of its CDP Forest A-rating for achievements in corporate action, transparency and deforestation. The Supplier Engagement Rating (SER) provides a score for how effectively companies are engaging their suppliers on climate change. CDP assesses performance on supplier engagement using a company’s response to selected questions on governance, targets, scope 3 emissions, and value chain engagement in the CDP climate change questionnaire.

R&D-based specialty food ingredients supplier, Bluegrass Ingredients achieved Food Safety and Quality Code certification from the Safe Quality Food (SQF) Institute. The recognition underpins the company’s commitment to producing ingredients of the highest food safety and quality standards. The company earned “Excellent” ratings through the SQF audit at Bluegrass’ Springfield and Glasgow facilities, for three consecutive years. This year, the locations scored a 99 and 96 out of 100, respectively.

In brief: AgricultureBarry Callebaut has made it onto the CPD leaderboard for a fourth year running.
The Defense label of Rijk Zwaan offered agricultural and horticultural growers worldwide a solution to manage the demand for sustainable produce and to limit the frequency and intensity of plant disease. The company’s extensive R&D program focuses on the development of resistances in the genetics of crops for protected and open-field cultivation.

In brief: Other highlights
The Food and Drink Federation launched a skills toolkit to help food and drink manufacturers across the UK access resources and information to recruit job seekers of all ages. The toolkit supports companies in the sector to identify the job finding and training schemes best suited to help them build and upskill their workforce. It will provide information on how a food and drink company can source job seekers for apprenticeship roles and how to access the £1,000 (US$1,350) grant for every employee taken on via the scheme.

By Inga de Jong

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