Blog: Katy AskewADM preparing Q3 chocolate sale

Katy Askew | 6 August 2014

Agri-giant Archer Daniels Midland Company plans to sell its global chocolate operations by the end of the third quarter, the company said this week.

Speaking to analysts during a conference call, ADM president Juan Luciano said: "We expect to have signed agreement by the end of the third quarter to sell our global chocolate business." Luciano did not provide details of who the buyer was.

The move follows news in April that ADM will hold onto its cocoa presses but sell its smaller chocolate businesses after negotiations to sell both -reportedly to Cargill - collapsed.

ADM has chocolate manufacturing facilities in the US, the UK, Belgium and Germany.

The B2B supply of chocolate and cocoa has - like much of the food industry - been undergoing a process of consolidation in recent years. While ADM will hold onto the bulk of this side of its business, the prospect of a sale - particularly if it is to a player like Cargill - could help create a group capable of competing with the might of Barry Callebaut in the space.

With chocolate makers from Mondelez International to Hershey and Mars all being forced to hike prices in response to a jump in cocoa costs, the industry will likely watch developments at ADM closely.

BLOG

Barilla puts sustainability centre stage

Barilla's 2016 results statement, published last week, makes interesting reading, not because of the Italian food group's commercial performance, but for the emphasis placed on sustainability achievem...

BLOG

UK M&A deal volumes slide in early months of 2017

Fresh data from Grant Thornton indicates the number of mergers and acquisitions in the UK food and drink sector fell to the lowest level for over two years in the first quarter of in 2017 - but the ac...

BLOG

Food policy returns to focus in Westminster

Amid the political turmoil in the UK caused by the EU Referendum, the resignation of a Prime Minister, subsequent burning debates over the Brexit “divorce” settlement and now by the surprise announcem...

BLOG

Danone closes WhiteWave, who will acquire Stonyfield?

Danone completed its US$12.5bn acquisition of WhiteWave Foods this week. The move will roughly double Danone's presence in North America, where WhiteWave is a top four dairy player. ...

just-food homepage



Forgot your password?