Cargill to acquire ADM’s chocolate business for $440m

By Oliver Nieburg

- Last updated on GMT

Related tags Adm cocoa North america Netherlands Cargill cocoa Adm

Cargill adds 700 new employees after snapping up ADM's chocolate business
Cargill adds 700 new employees after snapping up ADM's chocolate business
Cargill has agreed a deal to acquire ADM’s global chocolate business for $440m.

ADM reverted on plans to sell its joint cocoa and chocolate business, ADM Cocoa, last year and instead said it would only sell its chocolate manufacturing operations.

Through the deal announced today, Cargill will acquire ADM’s three North American chocolate plants, located in Milwaukee, Hazleton and Georgetown and three in Europe: Liverpool, UK, Manage, Belgium and Mannheim, 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,”​ said Bryan Wurscher, president of Cargill Cocoa and Chocolate North America.

Impact of cocoa prices

ADM’s chocolate business was part of a division that was pressured by rising cocoa prices last year and reported a $33m operating loss in fiscal 2013.

“The sale of the chocolate business helps improve ADM’s returns and will allow us to redeploy capital for higher-return investments,"​ said ADM chairman and CEO Patricia A. Woertz.

Louis de Schorlemer refused to speculate whether continued cocoa price hikes would affect Cargill, but said: “We see two things. We see continued year–on-year demand for chocolate products. Worldwide we see a growth in demand and that is stronger in Asia and the Middle East.”

“The second one is that we have put in place the Cargill Cocoa Promise to support a sustainable cocoa supply.”

The Cargill Cocoa Promise, which covers around 15-20% of the company’s cocoa supply, aims to boost the cocoa supply through farmer training community support and agricultural development.

700 new employees

Cargill will add ADM’s Ambrosia, Merckens and Schokinag brands to its portfolio and will gain around 700 new employees.

The transaction is subject to regulatory approval in the United States and the European Union. It is expected to close in the first half of 2015.

Cargill had been widely touted​ as the likeliest suitor for ADM’s chocolate business. Cargill’s communications officer Laura Brems previously told this site that her firm was “assessing a number of initiatives to progress its business strategy,”​ but she had refused to comment on speculation.

Cargill was pushed off the top spot as the world’s largest cocoa grinder when Barry Callebaut finalized a $950m deal for Singapore-based Petra Foods’ ingredients division this summer.

Cargill Cocoa and chocolate currently operates facilities in Belgium, Brazil, Canada, Côte d’Ivoire, France, Germany, Ghana, the Netherlands, UK and the USA.

ADM Cocoa will continue to supply deZaan branded cocoa ingredients from plants in Mississauga, Ontario; Koog aan de Zaan and Wormer, Netherlands; Mannheim, Germany; Ilhéus, Brazil; Abidjan, Côte d'Ivoire; Kumasi, Ghana; and Singapore.

Related topics Ingredients Chocolate

Related news

Show more

Related products

show more

Machu Picchu Foods expands chocolate production lines

Machu Picchu Foods expands chocolate production lines

Content provided by Machu Picchu Foods: Contract manufacturer of chocolates and snacks | 02-Feb-2024 | Product Brochure

Leading Peruvian manufacturer Machu Picchu Foods debuts cutting-edge production lines for filled chocolate bars, truffles, and crispy wafer snacks.

Related suppliers

1 comment

CONGRATULATION

Posted by Apurba Ganguly,

All The Best!

Report abuse

Follow us

Products

View more

Webinars