Weekly Roundup: Bunge sells Dutch refinery for €258 million, Ornua invests in UK cheese facility

06 Nov 2020 --- This week in business news, Bunge agreed to sell its refinery in Rotterdam, the Netherlands, subject to regulatory approvals. Ornua invested £3 million (US$3.9 million) in cutting and packing equipment at its facility in Leek, UK. Also, Fonterra achieved encouraging sustainability results, and Teagasc released a report benchmarking the sustainability of farm systems in Ireland.

In brief: Business and acquisitions
Bunge revealed that its Bunge Loders Croklaan JV has agreed to sell its refinery located in Rotterdam to Neste Corporation for €258 million (US$305 million) in cash, excluding working capital. Bunge will lease back the facility from Neste in a phased transition through 2024 to continue to supply its customers with its products. The transaction is expected to close in the first quarter of 2021. Bunge will also reinvest in its asset footprint to reach greater operational flexibility and efficiency and provide an enhanced portfolio of multi-oil refined products to its customers, the company says. 

Ornua’s latest investment will see the installation of an additional high-speed cheese slicing line and the further expansion of the company’s cheese grating capabilities.Ornua’s latest investment will see the installation of an additional high-speed cheese slicing line and the further expansion of the company’s cheese grating capabilities. Overall, the new equipment will result in an additional 7,000 metric tons of capacity, bringing total annual production to over 110,000 metric tons. The new investment at Leek comes when Ornua Foods UK is experiencing strong growth in both branded and own-label cheese, with sales through major UK retailers increasing by 15 percent to date. This, in part, can be linked to the significant change in consumer buying patterns witnessed during the COVID-19 lockdown. 

UK-based 2 Sisters Food has confirmed the completion of part of its Fox’s Biscuits business to a Ferrero-related company. Following the company’s announcement on October 7, Fox’s had entered into contracts for the sale. The deal was completed on October 31. The Ferrero-related company acquires Fox’s biscuit manufacturing sites at Batley and Kirkham, the sites which primarily produce biscuits sold under the Fox’s brand. 2 Sisters will retain the third site at Uttoxeter, which makes own-label biscuits for major retailers.

Corbion has reached an agreement with Breda’s municipality and the province Noord-Brabant to sell a plot of land in the city where its predecessor CSM used to operate a sugar factory. The agreed purchase price amounts to €21.9 million (US$25.9 million). The transaction is still subject to approval by the local council of Breda and the provincial executive of Noord-Brabant.

Inspire Brands and Dunkin’ Brands Group, the parent company of Dunkin’ and Baskin-Robbins, have entered into a definitive merger agreement under which Inspire will acquire Dunkin’ Brands for US$106.50 per share in cash in a transaction valued at approximately US$11.3 billion, including the assumption of Dunkin’ Brands’ debt.

H&W Ingredients and Dayton Foods, a fruit, nut, vegetable and specialty ingredient broker and distributor based in Brookfield, Illinois, US, have been acquired by Skidmore Sales & Distributing. H&W Ingredients has several food scientists and a culinary chef on staff, offering various technical services to their customers. H&W and Dayton Foods represent many top fruit, nut, and vegetable suppliers, including Ocean Spray, Del Monte, Wyman’s and Tree Top.

Elmshorn-based (Germany) Capol, a Business Unit of Freudenberg Chemical Specialities, SE & Co. (FCS), Munich, has started operations of a new production line for confectionery surface treatment products, at its site in Saint Hubert, Canada. With the production capacities created, the company is further expanding its global presence and strengthening customer supply in the North American market.

In brief: NPD and ingredient launches
Beroni is launching a pasta that can be made at home in as little as 30 seconds. Developed and manufactured in the UK, Beroni pasta dough is freshly prepared by mixing the finest durum wheat semolina with water. The fresh dough is then shaped into penne, fusilli or macaroni formats before being cooked “al dente,” then immediately frozen to preserve its freshness. With families increasingly looking for quick meal solutions,, Beroni can be cooked in boiling water in only 30 seconds or prepared in a microwaved, pan or wok in three minutes. It contains no preservatives or additives and is also suitable for vegans. 

Essentia Protein Solutions has launched an all-natural smoke flavor made from the Black Forest ham of Southwest Germany. The powdered smoke flavor is designed to add Black Forest ham’s distinct smoky taste to a host of savory and meat applications. It doubles as a functional protein solution for many meat products. Essentia’s new flavor ingredient will be marketed as ProFlavor P BF to blenders and producers in the savory segment and as ScanPro P BF to meat manufacturers. It enables manufacturers to maximize taste with a rich smoked flavor alternative.Essentia Protein Solutions has launched an all-natural smoke flavor made from the Black Forest ham of Southwest Germany. 

In brief: Sustainability 
Fonterra has achieved its “most encouraging” sustainability results since starting its annual reporting four years ago. However, the co-op stays focused on what still needs to be done to reach its long-term targets. The report shows that Fonterra improved all three of its core environmental metrics around greenhouse gas emissions, water use and solid waste to landfill for the first time since launching its first stand-alone Sustainability Report in 2017. Among other highlights in the report, Fonterra has become the first dairy company in New Zealand to have its emission reduction targets endorsed by the UN-backed Science Based Target initiative. 

Teagasc has released its latest report benchmarking the sustainability of a range of farm systems in Ireland. The report uses the Teagasc National Farm Survey to track dairy, cattle, sheep and tillage farms’ performance in improving their economic, environmental and social sustainability. The study also monitors the adoption of farm innovations to achieve this goal. The report includes newly compiled data for 2019 and data stretching back through the last decade, allowing for an assessment of farm performance over time.

In brief: Appointments
Campden BRI has appointed Sarah Armstrong as HR Director. In this new role, Armstrong will lead the Campden BRI Human Resources Team to develop the business by improving skills and capabilities, developing the overall employee proposition, and supporting strategic change. Armstrong will play a key role in leading the business, working with the CEO and the Executive Team, and will bring HR to the Executive Board for the first time.

In brief: Other highlights
Red meat and dairy products from the UK will take center stage in China this month at one of Asia’s most significant food and drink trade shows. High quality beef and pork, alongside a selection of cheese from the UK, will be showcased at FHC China, where more than 2,500 exhibitors worldwide will gather at the Shanghai New International Expo Centre. Due to international travel restrictions resulting from COVID-19, AHDB’s stand will be hosted by China-based representative Holly Chen, who provides support across the AHDB sectors in the local marketplace in a partnership with the China Britain Business Council.

By Elizabeth Green