ADM to open first facility built under aegis of new WILD business unit

By Hank Schultz

- Last updated on GMT

ADM to open first facility built under aegis of new WILD business unit
Archer Daniels Midland is set to open first facility built under the aegis of its new WILD Flavors and Specialty Ingredients business unit.  The new facility in Cranbury, NJ, will provide flavor and applications expertise to customers in the thriving New Jersey market.

The facility is able to handle significant application work in all categories including laboratories dedicated to beverage, savory and sweet in addition to oral care,” ​Jackie Anderson, ADM spokeswoman, told FoodNavigator-USA.   

ADM acquired WILD Flavors in late 2014 with an eye toward lessening the company’s exposure to commodity price swings.

Volatility insurance

“One of the most important ways we are working to increase returns and reduce earnings volatility is through the growth of our specialty ingredient offerings,”​ ADM chairman and CEO Patricia Woertz said at the time of the acquisition. “These high-value products provide the opportunity for increased margins and strong sales aligned with global consumer trends. WILD Flavors is the latest in a series of strategic expansions in specialty ingredients, including our new Brazilian protein specialties complex and our Chinese soluble-fiber facility.”

The WILD Flavors and Specialty Ingredients business unit, formed in January, 2015, includes the following product lines:

 • Specialty proteins (including isolated soy proteins, textured vegetable protein, soy protein concentrates, and soy flour & grits)

 • Emulsifiers

 • Edible beans

 • Natural health and nutrition (natural-source vitamin E, plant sterols, soy isoflavones and Omega-3 DHA)

 • Soluble fiber

 • Polyols

 • Hydrocolloids

The new 15,700-square-foot site, which will open in October, will include lab, office and meeting space, and is an addition to WILD’s existing facilities, Andersen said.

“This facility is designed to add to our capabilities. Right now, we do not plan to close any other WILD facilities as a result of this project,”​ she said.

Close at hand

But the density of potential customers in that particular market and the amount of competition for their business made it imperative to have a facility that is only a short drive away, Andersen said.

“Customer intimacy and being ‘easy to do business with’ are keys to being successful in the flavor business.  The locality of this facility makes it an ideal destination for customers to easily visit, allowing them to rapidly achieve their own product development goals,”​ she said.

According to ADM’s recent financial filing, the new business unit earned $104 million in the second quarter. Wild Flavors had strong results in North America, and the specialty proteins business had one of its best quarters ever.

The company said the business unit has continued progress toward achieving the cost and revenue synergies identified last year, with nearly 600 projects in the pipeline and more than 50 revenue synergy wins across the business units and geographies.

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