One hundred twenty years ago, in 1902, Archer Daniels Midland (ADM) began as a linseed oil business in Minneapolis. Over the years, ADM has transformed into a significant global enterprise, employing 41,000 people and operating in nearly 200 countries. The company is recognized for its extensive range of agricultural products. Some of its ventures, such as amino acids, sweeteners, enzymes, and biofuels, have propelled ADM into the expanding field of fermentation. With its vast fermentation capabilities and knowledge, ADM collaborates with innovative smaller firms. According to Ian Pinner, Senior Vice President of Strategy and Innovation, advances in fermentation science have made it more beneficial for ADM to collaborate with others rather than solely relying on internal development. “We can either expand our existing platform or consider investing in partners or collaborating with them, using that as an extension of our current capabilities,” Pinner explained. “We develop certain aspects in-house while also partnering to enhance our science and technology platform.”
Through capital investments and strategic alliances, ADM has partnered with several food companies that utilize fermentation for developing alternative protein products. In 2019, ADM invested in Perfect Day, a maker of animal-free dairy, shortly after collaborating with them to scale and commercialize their animal-free dairy proteins. The company also participated in funding rounds for Nature’s Fynd, an analog maker, in March 2020, as well as funding rounds for Geltor, a producer of animal-free collagen, and New Culture, an animal-free cheese maker, in July 2020 and November 2021, respectively. ADM Ventures, the company’s venture capital arm, led a funding round in January 2021 for Air Protein, a fermentation-derived carbon dioxide meat analog, and co-led a $347 million Series B funding round for cultivated meat maker Believer Meats in December 2021.
Pinner mentioned that ADM collaborates with companies at all stages of fermentation, assisting them in scaling their operations. They leverage their expertise to help startups make their technologies commercially viable, guiding them through potential formulations and aiding in market entry and distribution strategies. Furthermore, they monitor fermentation startups to identify innovations that could benefit ADM’s other customers.
Pinner noted that it is more strategic for ADM to utilize its extensive equipment, reach, and expertise to support fermentation startups like Perfect Day, New Culture, and Spiber, rather than developing all capabilities internally. While ADM could potentially create these new capabilities in-house, it would be a considerable undertaking requiring significant investment and expertise. “Instead of needing to build and own the entire landscape, we focus on identifying promising technologies and capable management teams to collaborate with,” he stated.
ADM invests heavily in companies developing next-generation fermented products through its venture arm, but its engagement with startups extends beyond mere financial backing. Pinner indicated that ADM often acts as a scale-up partner, assisting startups in determining their next steps. “When we invest, it’s because we believe in the technology and the team behind it,” Pinner explained. “In the long term, as the business grows, we aim to integrate into their strategy while having them become part of ours.”
ADM has collaborated and invested in animal-free dairy companies like Perfect Day and New Culture. They began working with Perfect Day in its formative years, before any of its animal-free whey protein products reached the market. Pinner noted that ADM assisted Perfect Day with scaling and application development. In 2019, Ryan Pandya, co-founder and CEO of Perfect Day, stated that ADM’s scale and reputation would enable the company to produce enough ingredients for various consumer products. Perfect Day has since launched several products across categories, including chocolate, milk, and cream cheese.
The partnership with New Culture, which employs precision fermentation to create casein proteins for non-animal cheese, was established more recently. In August, ADM and New Culture entered a strategic development and commercialization alliance, with plans for New Culture to introduce its animal-free mozzarella cheese to pizzerias next year. Pinner mentioned that ADM is assisting New Culture in expanding its manufacturing capacity in preparation for its early 2023 launch, ensuring they produce the right amount of cheese to balance supply and demand.
“We genuinely help our partners evaluate their business models and financial situations to identify how we can support their growth while benefiting our stakeholders,” Pinner remarked. Another firm ADM has partnered with and invested in is Spiber, a company utilizing fermentation to produce polymers for textiles and construction. Although Spiber is outside the food sector, ADM has recently announced a partnership with them to use its microbial fermentation facility in Iowa to convert corn-based dextrose into Spiber’s Brewed Protein polymers.
Pinner sees the ingredients and products generated through fermentation as an addition to the available options for manufacturers and consumers alike. Some companies ADM collaborates with are nearing commercialization, and their progress is promising, with high-quality products emerging that are viewed as viable alternatives. Furthermore, Pinner emphasized that fermentation-derived ingredients are increasingly recognized as sustainable options. While many companies in this sector have yet to conduct life cycle assessments, Perfect Day has demonstrated that its whey protein production significantly reduces water usage, non-renewable energy consumption, and greenhouse gas emissions compared to traditional methods.
ADM is committed to achieving its Strive 35 sustainability goals — a 25% reduction in greenhouse gas emissions, a 15% decrease in energy intensity, a 10% reduction in water intensity, and diverting 90% of waste from landfills by 2035. Pinner noted that fermentation is a key lever in achieving these objectives. ADM is exploring ways to enhance the sustainability of fermentation, experimenting with energy sources such as steam and investing in carbon sequestration techniques.
By leveraging its expertise and resources to pursue more sustainable solutions like fermentation, ADM can continue to meet the needs of its customers. Manufacturers often have sustainability commitments, and consumers are increasingly aware of the carbon footprint of the products they purchase. Pinner shared that ADM collaborates with its manufacturing clients to understand their sustainability requirements and jointly develop actionable solutions.
“Today, we believe in enduring trends,” Pinner stated. “For ADM, this encompasses food security, health, and sustainability. We are strategically aligned with these trends. The capacity for precision fermentation to drive innovation in sustainability, food security, and health is evident, and you can expect to see ongoing innovations from ADM for many years to come.”
In addition to its focus on fermentation, ADM is also interested in the role of minerals, such as calcium citrate, in health and wellness. Research is ongoing to determine whether calcium citrate can aid sleep, aligning with ADM’s commitment to enhancing consumer health and well-being.