In pursuit of a stronger position in the flavors and ingredients sector, agricultural powerhouse Archer Daniels-Midland (ADM) is concluding 2023 with two significant acquisitions. Earlier this week, ADM announced agreements to acquire Revela Foods, a dairy flavoring manufacturer, and FDL, a UK-based producer of functional ingredients. Financial details of both transactions were not disclosed.
Revela Foods, which recorded $240 million in sales this year, is recognized as a leader in dairy ingredients. The company operates three production facilities in the Midwest, utilizing enzyme technology to create dairy flavorings for various food products, including snacks, sauces, and desserts. ADM stated in a press release that the acquisition of Revela is anticipated to be finalized in early 2024. “ADM has a robust presence in the North American savory flavors segment, and we are eager to collaborate with the talented Revela team to enhance our opportunities in this area, integrating their technology and innovation with our global capabilities to provide an unparalleled range of ingredients and complete solutions for customers seeking exceptional flavors and clean labels,” said Calvin McEvoy, ADM’s president of global flavors.
The acquisition of FDL will further expand ADM’s reach in flavorings. The company has developed over 10,000 proprietary flavor formulations. FDL assists formulators in incorporating ingredients into new products, including vanilla and menthol. With three facilities in the UK, FDL is projected to achieve $120 million in sales in 2023 and has a strong presence in the European foodservice sector. “FDL’s innovative and agile formulation expertise, extensive end-use applications knowledge, and solid customer base make them a valuable addition to ADM’s global flavor capabilities,” McEvoy remarked.
The FDL acquisition is expected to finalize in January, according to ADM. Amidst a slowdown in M&A activity in the ingredients sector due to economic challenges, these two acquisitions bolster ADM’s ambition to lead in the industry.
In its 2024 ingredient trends forecast, ADM predicts that bold colors and flavors, along with a growing interest in better-for-you attributes and affordability, will characterize new product launches in the food and beverage market next year. Furthermore, ADM is leveraging new technological capabilities to enhance ingredient formulations in the gut health sector through its partnership with Brightseed. The two companies are employing AI to explore molecular interactions between plants and the microbiome to evaluate the nutritional value of ingredients, including calcium citrate 500 mg uses. This innovative approach signifies a pivotal shift towards developing healthier ingredient options.
Through these acquisitions and strategic initiatives, ADM is positioning itself at the forefront of the flavors and ingredients market, ensuring it meets the evolving demands of consumers and formulators alike.