Weekly Roundup: ADM among “most ethical companies,” Natural Products Expo West postponed amid COVID-19 concerns
06 Mar 2020 --- This week in business news, ADM was named as one of the year’s most ethical companies, while Wacker scored “Platinum” status in EcoVadis rating for sustainability. Olam International revealed its intentions to sell its remaining 50 percent equity stake in Indonesian sugar joint venture to its partner Mitr Phol Sugar Corporation. Also, Olam Cocoa introduced the first professionalized child labor monitoring and remediation system to Cameroon. Brenntag Food & Nutrition inaugurated a new food development center in Guatemala and the organizers of Natural Products Expo West postponed the event due to COVID-19 concerns.
In brief: Business
ADM has been recognized by Ethisphere, a global leader in defining and advancing the standards of ethical business practices, as one of the 2020 World’s Most Ethical Companies. The recognition honors companies that take the long view with a purpose-based strategy and strive to create positive change throughout their global communities. “Each day, our world-class team of 40,000 works to enrich the quality of life for people the world over and it’s absolutely paramount that every aspect of that work follows standards of honesty and integrity at all times,” says Chairman and CEO Juan Luciano. “We are proud to be recognized for our company-wide commitment to ethical business practices, transparency and corporate citizenship.”
Wacker has received the platinum recognition level from EcoVadis for 2020.Wacker has received the platinum recognition level from EcoVadis for 2020. The company’s rating rose from 72 to 75 points. It now ranks among the top 1 percent of the highest-scoring companies. As a member of Together for Sustainability (Tfs), Wacker not only evaluates its suppliers in terms of sustainability, but also subjects its own performance as a supplier to external rating by EcoVadis. The company joined TfS in 2015. Established in 2011, the organization aims at developing a global program for responsible procurement of goods and services and improving the ecological and social standards of suppliers.
Olam International is to sell its remaining 50 percent equity stake in Indonesian sugar joint venture Far East Agri to its joint venture partner Mitr Phol Sugar Corporation for a total consideration between US$82.5 million and US$85.0 million. This is subject to final adjustments as provided in the sale and purchase agreement. Olam’s sale of its shareholding in the sugar joint venture is in line with its six-year strategic plan announced in 2019, focusing on businesses with sustainable growth potential and divesting and/or restructuring de-prioritized assets and businesses to release capital and redeploy to the prioritized businesses. The transaction is expected to be completed by the end of the month, subject to customary closing conditions. On completion, Far East Agri will cease to be an associated company of Olam. Olam will book a post-tax capital gain of approximately US$37.5 million – US$40 million on completion of the transaction.
Meanwhile, child labor monitoring and remediation is set to be rolled out across Cameroon in the first program of its kind by a cocoa company. The move forms part of Olam Cocoa’s global commitment to put children first by tackling child labor and helping more children attend school across its entire direct supply chain. The company is working in partnership with the Fair Labor Association (FLA) and local cocoa farming cooperatives to digitally register its nearly 7,000 farmer suppliers in Cameroon and their households; introduce rigorous traceability and reporting systems; educate local communities about child labor and set up dedicated child labor monitoring and remediation systems (CLMRS) – the first time these measures have been introduced professionally and at scale in Cameroon. To facilitate this process, Olam Cocoa is introducing a new app to its Olam and Farmers Information System (OFIS) technology.
Brenntag Food & Nutrition has opened a new Food Application & Development Center in Guatemala City. The new facility will support the Food & Nutrition teams particularly in Central America but also in the rest of Latin America in the beverage, dairy, confectionery and bakery segment. Brenntag Food & Nutrition has opened its new Food Application & Development Center in Guatemala City. The new facility is the fourth center for Latin America and will support the Food & Nutrition teams particularly in Central America but also in the rest of Latin America in the beverage, dairy, confectionery and bakery segment. The center is equipped with specialized devices to find the right ingredients and support the customers in finding solutions for their challenges. It is a change for Brenntag Food & Nutrition in Central America as it allows the team to propose new alternative concepts, participate in customer’s innovation projects and develop new business. The new facility will handle projects across borders – especially with the proximity to Mexico it offers very interesting perspectives, the company says.
Kancor Ingredients has embarked on a major expansion spree in its golden jubilee year. Established in 1969, the company has already drawn up a three-year-long expansion plan. The company, now part of France-based Mane Group, one of the largest flavor and fragrance companies in the world, has already invested over US$18 million in the last four years and will invest over US$21 million in the next 36 months for the expansion of existing manufacturing facilities and setting up new facilities and incorporating new technologies. The Kochi-headquartered company will continue the expansion of its facilities located in Kerala, Karnataka and Uttar Pradesh states in India. In Karnataka, Kancor is planning to set up an additional facility adjacent to the existing facility at Byadgi. The company is currently in the process of acquiring around 50 acres of land for setting up a new processing center. It will act as the major processing center of Kancor for the next 25 to 30 years. The company, which has two facilities in Bareilly, Uttar Pradesh, has also started the process of expanding both facilities. In the home state, the facility at Angamaly is all set to undergo a major revamp with focus on R&D and new products. It will take three years for the completion of the projects.
In brief: Appointments & retirements
The International Dairy Foods Association (IDFA) names Joseph Scimeca, Ph.D., as senior Vice President,Regulatory and Scientific Affairs. Scimeca comes to IDFA after serving for 16 years with Cargill Inc., most recently as the company’s Vice President of Global Regulatory and Scientific Affairs. He has a 33-year career in the global food, beverage and dairy industries, holding leadership positions with Kraft Foods, The Pillsbury Company and General Mills. In this new role, Scimeca succeeds Cary Frye, IDFA’s current Senior Vice President of Regulatory Affairs, who will retire in June 2020 after a 35-year career.
Fonterra Co-operative Group Limited (FCG) Chairman John Monaghan has confirmed that he will retire as a Director of the Co-operative when his current three-year term ends at its Annual Meeting this November. In a note to the Co-operative’s farmer-owners and unitholders, Monaghan explained that his decision was the next step in the Fonterra Board’s development and succession planning.
In brief: Other highlights
Since the international situation on COVID-19 has spread globally, the organizers of Natural Products Expo West decided to postpone the event, stating that postponement or rescheduling of a number of events may happen later in 2020. In the particular case of New Hope’s Natural Products Expo, the situation has been very different in that the show was in-flight, with production underway, when the views of the community started to diverge. “Some of our partners strongly advocated continuing with the show as planned. Some of our partners wanted the show, but not now, and some just wanted a straight-forward cancellation,” the organizers state. “It is now clear, despite continued advice from local government and health authorities that the City of Anaheim remains open, that the majority of our community want the show, but they do not want it now.”
By Elizabeth Green
