Mergers & acquisitions

Archer Daniels adds another natural citrus to the mix with Ziegler Group acquisition

By Kristine Sherred contact

- Last updated on GMT

The number of lemony chocolates has doubled worldwide and is one of five innovative trends in the industry, according to Infiniti Research. Pic: Getty Images / Madeleine_Steinbach
The number of lemony chocolates has doubled worldwide and is one of five innovative trends in the industry, according to Infiniti Research. Pic: Getty Images / Madeleine_Steinbach

Related tags: Citrus, Orange, Essential oil, Flavor, Grapefruit, Archer daniels midland, agribusiness, Chocolate, Confectionery, Mergers and acquisitions

The agriculture and nutrition company will acquire the German provider of natural citrus flavor ingredients for an undisclosed amount, pending approval by the end of the second quarter.

Chicago-based Archer Daniels Midland Company (ADM) purchased a North American citrus provider, Florida Chemical, in January.

“The combination of Ziegler and Florida Chemical will immediately position ADM for growth as a global leader in natural citrus ingredients, with a complete range of innovative citrus solutions and systems for food, beverage and fragrance customers,”​ said Vince Macciocchi, president of ADM’s Nutrition business, in a release.

Ziegler’s ‘proprietary cold concentration techniques’ create a variety of citrus oils, extracts, concentrates and compounds for use in food and beverage. The 55-year-old company is still family-owned, based in southern Germany about 50 miles north of Nuremberg.

Owner Günter Ziegler said ADM’s global reach will help the company attract new customers.

Chocolate has seen an influx of citrus flavors outside the common orange flavor. The number of lemon-tinged chocolate products has doubled​ worldwide, according to Infiniti Research. Producers are also mixing lemon with other complementary flavors, such as yogurt or pepper.

“Citrus is one of the fastest-growing, highest-demand flavors for food and beverages, which is why the creation of a global citrus platform offering a complete product line for our customers is such an important capability for our growth strategy,”​ added ADM’s Macciocchi.

Double citrus takeover

In announcing its acquisition of Florida Chemical Company (FCC) earlier this year, ADM boasted about its leading solutions in vanilla and mint flavorings. Adding one and now two citrus providers rounds out a robust portfolio that reaches more than 170 countries.

“No one in North America does citrus better”​ than FCC, Macciocchi said in January.

In addition to standard essential oils, FCC also produces customized flavor blends and flavor modifiers.

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