Blog: Cargill snaps up ADM's chocolate business
Dean Best | 2 September 2014
Five months after Cargill's rumoured interest to buy Archer Daniels Midland's cocoa and chocolate businesses came to nothing, the company today (2 September) announced a deal for part of the assets.
Cargill has agreed to pay US$440m for ADM's chocolate divisions, which includes two plants in the US and one each in Canada, the UK, Belgium and Germany.
"This acquisition is a major milestone in Cargill's chocolate growth strategy and will help us better serve our customers in North America and Europe," Bryan Wurscher, president of Cargill's cocoa and chocolate business in North America, said.
Cargill argued the deal will broaden the product range it offers to food manufacturers.
For its part, ADM said the sale would allow it to focus on "higher-return investments".
The deal follows ADM's announcement in April that it would keep the "majority" of its cocoa operations after "extensive negotiations" with an unnamed buyer over a deal for its cocoa and chocolate operations. The talks, believed to be with Cargill, fizzled out - but ADM said it was still looking to offload its chocolate business, the smaller of the two divisions.
A deal to merge French dairy co-operative Eurial with the dairy assets of the broader agri-food co-operative Agrial will be voted upon at meetings at the two businesses next month....
In the sustainability arena, objective endorsement by a third party, particularly an NGO with credibility levels among consumers that even Unilever can only dream of, is an extremely valuable commodit...
An eye-catching tech move from Tesco has been revealed this week - and one that has echoes of one of Amazon's latest initiatives in the US....
Danone has appointed a new executive to lead its early life nutrition business, which features brands including Aptamil and Nutrilon....
- Rise of prepared foods in US grocers - analysis
- Hershey results, outlook, M&A - the top takeaways
- How are brands organising for e-commerce?
- Work on sugar could stir more clean-label concerns
- Free-from firm BFree Foods - bitesize interview
- Fazer buys European biscuit brands from Mondelez
- Mondelez sees stronger margins, LFL growth
- Murray Goulburn accused of "misleading" the market
- ConAgra sells two bakeries to Alpha Baking
- ABF takes Patak's into frozen ready meals category