December 21, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

ADM has been on a sustained streak of acquisitions and building out a strong global flavors portfolio, and just before the close of 2023, has added two more: Revela Foods, a Wisconsin-based developer and manufacturer of dairy flavor ingredients and solutions – a deal that would enhance ADM’s capabilities in both the $1.8 billion global dairy flavors and the $3.2 billion savory flavors segments – and UK- based FDL, a top developer of flavor and functional ingredients systems.

“We are excited to partner with ADM to further Revela’s reputation as an innovative, turnkey provider of dairy flavor ingredients and solutions,” said Terry Schneider, CEO, Revela. “We believe joining the ADM family will allow us to offer even broader solutions to our customers and will provide our employees with even greater opportunities for advancement.”

Revela Foods operates three state-of-the-art production facilities in the U.S. Midwest, and as a portfolio company of New Heritage Capital since 2019, has delivered rapid growth driven by its innovative enzyme technology that is the engine behind a broad range of clean-label dairy flavor formulations for snacks, frozen meals, sauces, dressings, soups, seasonings, and desserts.

The striving for the holy grail of a “clean label” to meet consumer demand is expected to translate into a CAGR of 5 percent for the global food flavors market, which is expected to reach a value of $19.72 billion by 2026. This is up from a value of $13.31 billion in 2018, according to research conducted by Reports and Data, and ADM has made the segment a focus for growth. 

Global AgInvesting has been sharing news of ADM’s move in the flavor sector since 2014, beginning with its acquisition of Wild Flavors for $3.1 billion. This cornerstone deal was followed by the additional acquisitions of organic flavors company Eatem Foods in 2015; Brazilian producer of natural extracts, emulsions, and compounds Amazon Foods in 2016; vanilla flavor producer Rodelle in 2018; specialty flavors company Florida Chemical Company in 2019; the Zeigler Group in 2019; and Flavor Infusion International S.A. in 2021. All the while, ADM made investments to expand its flavor facility in Berlin, establish its fully automated flavor production facility in Pinghu, Zhejiang Province, China, and build out its network of innovation centers in Europe, Asia, Latin America, and North America. 

“ADM’s integrated business model and unparalleled production and product application expertise power a portfolio of customizable, complete nutrition solutions that no other company can match,” said Ian Pinner, president, Nutrition business, ADM. “Our flavors business is an important pillar of our Nutrition growth strategy, and we are continuing to add to our flavors pantry to ensure we remain the partner of choice for customers around the globe.”

“Revela has built a strong business around its unique range of dairy flavor ingredients and solutions for customers spanning major brands, retailers and food service,” said Calvin McEvoy, president of global flavors, ADM.

“ADM has a strong presence in the North America savory flavors segment, and we’re excited to work with the impressive Revela team to expand our opportunities there, bringing their technology and innovation together with our global capabilities to power our unparalleled range of ingredients and complete solutions for customers who are looking for great flavors and clean labels.”

FDL

FDL operates three production facilities and two customer innovation centers across the UK, employing 235 people with projected sales of approximately $120 million for 2023. Included in its team are 40 dedicated innovation specialists who have created more than 10,000 proprietary flavor formulations, giving the company a significant presence in the EU’s $900 billion foodservice segment.

“We are excited to enter into this agreement with ADM,” said Eric Beatty, CEO, FDL. “They’re an ideal partner for us, with global nutrition and flavor capabilities that will provide new opportunities to strengthen FDL’s portfolio of taste and nutrition solutions.”

“In turn, the FDL team looks forward to helping add to ADM’s broad offerings with our diverse portfolio of flavor and functional ingredient systems, IP, and capabilities, as well as the entrepreneurial spirit and innovativeness of human talent that has enabled FDL to become a differentiated market leader today.”

Beatty concluded, “ADM is synonymous with the best in animal and human nutrition, and together, we look forward to delivering new and innovative ingredient solutions to our global customer base in the food and beverage industry.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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