Wednesday, 6 August 2014

MERGERS / ACQUISITIONS / CONSOLIDATIONS UPDATE: Food, Beverage Companies Expand, Acquire & Promote

Food, Beverage Companies Expand, Acquire & Promote
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Food and beverage companies have made large strides to create better products by opening new plants, acquiring new brands or promoting employees to top-level positions.

Cargill started test processing cocoa at its state-of-the–art plant in Gresik in the East Java region of Indonesia in May. When the $100-million plant opens later this year, it will be able to process about 70,000 metric tons of cocoa beans into cocoa powder, butter and liquor for customers in Indonesia and Asian countries. This is Cargill’s first plant in Asia and is expected to create 200 new jobs in Indonesia.

Dynamic Food Ingredients plans to build an industrial-scale polyol manufacturing facility near one of Archer Daniels Midland Company’s corn-processing facility to be used as source of raw materials. While the exact location is up in the air, the company said it wants to begin construction in the summer of 2015. DFI’s patented technology replaces chemicals with electricity to create near-zero calorie sweetener.

Flour-milling and ingredient company Ardent Mills selected downtown Denver as the location for its new headquarters. The company will use four floors of a 15-story building and house about 200 staff members. Ardent Mills chose the location to be near their mills in Colorado, to work with farmers nearby and to collaborate with public universities like Colorado State University.

Canadian Neptune Technologies & Bioressources opened its new plant in Sherbrooke, Quebec in mid-June, capable of producing 150 metric tons of krill oil a year, with capacity to double that in the future. The new facility features improved safety measures and technology that will optimize manufacturing, such as enhancing bioactivity. The company is also launching three new krill oil formulas that benefit the heart and circulation, bones and joints, and brain and vision health.

Another company that’s planning on expanding its operations is Agropur Ingredients. Expansion of the La Crosse, Wisconsin-operation began in July and is expected to complete in April 2015. The updated dairy manufacturing facility, which will be about 200,000 square feet, will bring a new plow blend line and form fill seal pouching line, a high-volume twin blender system, a new retail packaging line, racked warehouse storage, and four shopping and receiving docks.

Merieux NutriSciences Corporation acquired Italian Total Quality Food Consultants (TQF) in early July to expand its regulator, scientific and marketing services to the food and non-food industries. TQF is a provider of in-depth information and consulting on scientific updates, nutritional and marketing label services and product registration. Amongst the services offered to its customers, TQF specializes in regulatory expertise, offering certification for 46 parameters of compliance in 147 countries for more than 100 product categories.

Brynwood Partners VII L.P., acquired the Juicy Juice brand from Nestle USA, Inc., in early July. Juicy Juice began 37 years ago and was one of the first brands to offer 100-percent juice. This is the sixth brand Brynwood has acquired from Nestle and the third brand in the past 14 months.

In a turnkey operation, West Liberty Foods, LLC, purchased $12.7 million in equipment from Quantum Foods that had declared bankruptcy in February. West Liberty Foods also purchased the three buildings that Quantum used in Bolingbrook, Illinois in a separate purchase with plans to purchase its production and culinary facilities as well. The company hopes to create up to 600 jobs within the next year.

Companies aren’t only making moves to expand operations. Internal moves are putting key players in strategic positions to further company progress. Dole Packaged Foods, LLC, promoted Ryan Howard to field sales manager of foodservice, replacing Stuart McAllister, who is now vice president of sales and marketing of foodservice and industrial. Howard will oversee and coordinate with four regional sales managers and work with brokers, distributors and operators. And LycoRed announced Rony Patishi-Chillim to become the new CEO on Oct. 1, when current CEO Morris Zelkha steps down after more than 20 years in the position. Zelkha will continue as Patishi-Chillim’s advisor. The change is part of Adama Group’s organizational changes to enhance nutrition activities.

MGP Ingredients’ Board of Directors appointed Gus Griffin as the company’s President and CEO. Griffin brings marketing and leadership skills to the company after spending time in key positions for Brown-Forman Corp., Next Level Spirits and Nelson’s Green Brier Distillery. He has worked on expanding and promoting prominent liquors like Jack Daniel’s and Southern Comfort.  

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