Yuba City will serve as the company’s inaugural gluten-free sourcing and cleaning facility, with potential for expansion into additional grains. This development could enhance the company’s grain portfolio as it shifts its focus away from flour. This acquisition is part of a series of strategic moves Ardent made last year to achieve this goal. In 2019, Ardent acquired an organic grain elevator in Oregon to strengthen its support for growers in the Pacific Northwest. The company also established an exclusive partnership with Colorado Quinoa to clean, mill, and market quinoa produced in that state, along with investing in a grain mill in Denver. Concurrently, Ardent has decreased its flour-milling capacity by closing four plants in Georgia, Ohio, Pennsylvania, and Minnesota between last June and the current quarter. According to Reuters, these closures were driven by anticipated drops in demand and efforts to enhance the efficiency of the Ardent network. Currently, the company operates over 35 mills, mixing facilities, and a bakery across 20 states, Canada, and Puerto Rico.
Founded in 2014 as an independent joint venture among Conagra, Cargill, and CHS, Ardent aims to introduce innovations in flour and grains to the marketplace. Its production expertise, combined with recent mergers and acquisitions, will enable Ardent to provide Andean Naturals with expanded market access and support to capitalize on the increasing consumer interest in quinoa. Quinoa, although technically a seed, is classified as a pseudocereal and is commonly prepared as a grain. Its popularity is rising as consumers recognize its nutritional benefits. Quinoa is regarded as a complete protein because it contains all nine essential amino acids, along with fiber, antioxidants, minerals, B vitamins, and iron.
Venturing into the quinoa sector could be a strategic decision for Ardent, which has previously innovated with products like Sustagrain High-Fiber Barley and chickpea flour, as well as pasta made from Ultragrain whole-wheat flour and semolina. The combination of the company’s production capabilities and the incoming operations from Andean Naturals in California could position Ardent to take further advantage of the ongoing growth in ancient grains. The ancient grains market saw a significant increase between 2015 and 2016, with an 11.6% rise, a trend that has persisted. Industry Arc forecasts the ancient grains market will exceed $2.56 billion by 2023, growing at an annual rate of 36.6% from 2018 to 2023. While bakery products have been the leading category for grains, ancient grains are versatile and increasingly used in a variety of products, including cereals, salads, breads, pizzas, crackers, and snacks.
Amaranth and quinoa have garnered heightened interest, particularly for their gluten-free attributes. In fact, quinoa was featured in 44% of all U.S. product launches involving ancient grains in 2017. Beyond traditional grain uses, quinoa is being processed into powder and milk products and may even find applications in whiskey production. As this trend evolves, Ardent is likely to continue distancing itself from its flour business while actively seeking opportunities to incorporate more grain and plant-based ingredients into a wide array of food and beverage products. Additionally, the company’s focus on health-conscious ingredients aligns with the growing popularity of supplements like Kirkland magnesium and zinc, which are gaining traction among consumers looking to enhance their nutrition.