Azelis, a leading innovation service provider in the specialty chemicals and food ingredients industry, is delighted to announce its new distribution agreement with BENEO, a prominent manufacturer of functional ingredients for the food, feed, and pharmaceutical industries. Effective immediately, Azelis will be the exclusive distributor for inulin, oligofructose, scFOS, texturised wheat proteins, faba beans, Beta-glucans, meatless solutions, and specialty rice ingredients in India and the entire portfolio in Bangladesh. This new agreement strengthens Azelis’ existing and successful partnership with BENEO in EMEA.
BENEO is a leading expert in developing and producing functional ingredients derived from natural sources such as chicory roots, sugar beet, rice, and wheat. In Food & Nutrition, BENEO’s plant-based functional ingredients help improve the nutritional and technical properties of a wide variety of products, while maintaining or even improving taste or texture.
This new mandate reinforces Azelis’ offering in India and Bangladesh; this partnership completes its advanced product offering for food and beverages, including bakery, confectionery, meat, and dairy products, as well as plant-based alternatives for the latter two applications. Moreover, BENEO’s strong commitment to sustainability aligns with Azelis’ strategy to provide innovative and sustainable formulations to its customers.
Britvic, the FTSE 250 global soft drinks business, has partnered with Atrato Onsite Energy, a leading solar energy provider, to deliver clean energy to Britvic via an innovative 10-year Power Purchase Agreement (PPA).
Atrato’s new solar installation in Northamptonshire will generate energy exclusively for Britvic. It will have a total capacity of 28 MW and will be capable of generating 33.3 GWh pa of clean energy, the equivalent of powering 11,500 homes or planting 260,000 trees. The electricity generated will be enough to power 75 % of Britvic’s current operations in Great Britain, including its Beckton and Leeds factories, which can produce 2,000 recyclable bottles per minute for a portfolio of iconic brands including Tango, Pepsi and Robinsons.
As part of Britvic’s Healthier People, Healthier Planet sustainability mission to make a positive contribution to society, they are tackling their carbon footprint head on. Through innovation, utilising low carbon technology and energy sources, and establishing a more sustainable supply chain, Britvic is determined to play its part in securing a healthier future for the planet.
Britvic has committed to achieving net zero carbon emissions by 2050 and has led the industry as the first UK soft drinks company to have a 1.5 °C target verified by the Science Based Targets initiative. Britvic has demonstrated its commitment to this goal, having reduced its direct carbon emissions by 34 % since 2017 and generated 57 % of its energy needs from renewable sources in 2022, up from 28 % in 20181.
Progress has been achieved through significant investments across Britvic’s manufacturing base. For example, Britvic has installed five biomass boilers in Brazil, delivered multiple energy saving projects, is investing £ 4 million in a heat recovery system at Beckton, and they’ve recently announced a new Corporate Power Purchase Agreement in Ireland that will ensure that Ballygowan, Ireland’s iconic water brand, is produced using 100 % renewable electricity harnessed from local wind energy.
In this latest milestone, Britvic’s agreement with Atrato has provided the investment security needed to build the new solar farm in an old quarry in Northamptonshire. This will see 28 MW of new additional renewable energy capacity created as a result of the deal.
Atrato will supply Britvic with solar electricity that is commercialised on a pay as you generate basis but is delivered on a baseload basis that is consistent to the consumption needs of the company. This innovative and long-term PPA has underwritten the Atrato’s investment into this solar project.
Atrato has fully financed the solar installation, which is expected to be commissioned in early 2024. In only 19 months since IPO, Atrato has built a portfolio of 40 solar sites across the UK. Atrato is the green energy solution provider of choice for many UK companies with an impressive client list of blue-chip corporates including Tesco, Marks & Spencer, Anglian Water, Nissan and Amazon.
1Britvic Annual Report 2022, page 3
Revolutionary strategic partnership between two global companies, with footprints extending from the farm gate to iconic foods and beverages, provides unprecedented and unique opportunity to expand regen ag at scale
ADM and PepsiCo announced a groundbreaking 7.5-year strategic commercial agreement to closely collaborate on projects that aim to significantly expand regenerative agriculture across their shared North American supply chains. This strategic partnership is expected to reach up to 2 million acres by 2030, and represents a trailblazing effort by two global companies that share ambitious carbon reduction goals. The companies’ capabilities span the food and agriculture value chains, creating a unique, large-scale platform to support farmers’ transition to regenerative agriculture, while building their resilience to climate change.
The long-term agreement will initially enroll corn, soy and wheat farmers across Kansas, Minnesota, Iowa, Illinois, Indiana and Nebraska, with the opportunity for future expansion, to increase visibility across the value chain and integrate a range of multi-year farmer-first regenerative agriculture initiatives, including cover crops, reduced tillage, nutrient management, diverse rotations, and responsible pesticide use. The companies plan to share resources and collaborate to create value throughout the supply chain by providing participants with technical and financial assistance, offering access to peer regenerative farming networks, hosting educational field days, and tracking results using trusted, third-party measurement systems.
Reaching the strategic partnership’s goals could eliminate 1.4 million metric tons of greenhouse gasses – equivalent to the amount of electricity used to power 275,000 homes per year – at the farm level, while creating meaningful shared value directly for farmers.
“Building a better food system is essential to the future health of the earth and all of us,” said Jim Andrew, Chief Sustainability Officer, PepsiCo. “At its core, PepsiCo is an agricultural company, working to spread regenerative agriculture practices that restore the earth and reduce carbon emissions to 7 million acres by 2030. This partnership with ADM marks a sea change in how PepsiCo engages with strategic partners and is expected to help us reach almost one-third of that goal. By enabling greater collaboration through strategic partnerships like this one, we can strengthen the livelihoods and resilience of the farmers we work with, while building a more sustainable future together.”
“Sustainability is fundamental to ADM: Our growth strategy is underpinned by demand for more sustainable products, and our culture compels us to act,” said ADM Chief Sustainability Officer Alison Taylor. “Last year, we expanded on our Strive 35 sustainability goals with a commitment to reduce our Scope 3 emissions by 25 % by 2035, and expanding regenerative agriculture practices – as we have with our recent strategic partnerships with the National Fish and Wildlife Foundation and Farmers Business Network – will be key to reaching that goal. Today’s announcement is a major step forward, as we work with a partner whose values align with our own to scale up regenerative agriculture in a way few other companies can. We’re excited to take the next big step in reducing carbon and making our entire food system more sustainable.”
pep+ is PepsiCo’s strategic, end-to-end business transformation with sustainability and human capital at the center of how the company will create growth and value. As part of those ambitions, the company is working to spread regenerative practices across 7 million acres of land by 2030 — an area approximately equal to its entire agricultural footprint – and striving to achieve net-zero emissions by 2040.
ADM’s Strive 35 sustainability goals include reducing absolute greenhouse gas emissions by 25 %, energy intensity by 15 %, water intensity by 10 %, and achieving a 90 % landfill diversion rate by 2035 against a 2019 baseline. In 2021, ADM additionally committed to a new, aggressive environmental goal to reduce Scope 3 greenhouse gas emissions 25 % by 2035 while accelerating its target date to achieve a completely deforestation-free supply chain from 2030 to 2025. The company has also committed to work with the Science Based Targets Initiative with the aim of obtaining approval of its climate targets and alignment with ambitious global goals to limit rising temperatures to 1.5 degrees Celsius.
Strategic, asset-light expansion into functional beverages increases Halo’s addressable market and near-term revenue opportunity
Halo Collective Inc. announced that it is strategically expanding into the functional beverage market with a proposed stock-based acquisition of private company operating as H2C Beverages and the entering into of a distribution and manufacturing agreement with Elegance Brands Inc. Pursuant to the terms of the Distribution Agreement, Elegance has agreed to purchase USD30 million of Halo’s H2C and Hushrooms™ branded products during the 24-month period following the launch of the products and to distribute these products to retail outlets in respective legal states across the United States.
Kiran Sidhu, Halo’s Chief Executive Officer, commented, “Nootropic nutraceuticals is a relatively new health category that we believe is poised for robust growth. Our strategic acquisition of H2C Beverages will bolster Halo’s growth opportunities, even as the recreational cannabis industry faces over-supply issues in our California and Oregon markets. Elegance Brands is the perfect partner to manage and distribute H2C and our functional mushroom brand Hushrooms to mainstream consumers.”
Added Raj Beri, Elegance’s CEO and Founder, “Elegance has successfully established a distribution network with a potential reach to tens of thousands of outlets nationwide that uniquely positions for the significant growth expected in the beverages and functional mushroom markets. We believe that Halo’s innovative line of products will be strong sellers alongside our portfolio of brands all built around innovation, and we are excited to offer them to our expanding distribution customers.”
Acquisition of H2C Beverages
Halo has signed a definitive agreement to acquire 1285826 B.C. Ltd., a company focused on cannabinoids and non-psychotropic mushroom functional beverages. The H2C acquisition is expected to provide Halo with a toehold in one of the fastest growing sectors of the cannabidiol market, estimated to account for USD16 billion in U.S. sales by 2025, according to Brightfield Research1, as well as to directly participate in rising consumer consciousness toward the health benefits of consuming small doses of cannabinoids and functional mushroom extracts paired with adaptogens. H2C’s product portfolio includes a line of premium flavoured waters that are nano emulsified to maximize absorption and other plant-based beverages infused with cannabinoids, functional mushroom extracts with fulvic and humic minerals from the Rocky Mountains.
In consideration for all the issued and outstanding shares of H2C, Halo has agreed to issue 7,538,462 common shares in the capital of Halo. Closing of the H2C Acquisition is subject to the satisfaction of customary closing conditions, including, among others, the approval of the Neo Exchange Inc. The Company expects the H2C Acquisition to close in January 2022. Halo has also agreed to issue 603,077 Common Shares to an arm’s length finder in connection with the H2C Acquisition.
Distribution and manufacturing agreement with Elegance Brands
Halo has also expanded its collaborative relationship with Elegance by entering into the Distribution Agreement to propel the national distribution of beverages, capsules, and topical supplements under H2C and Halo’s functional mushroom brand, Hushrooms. This new category of functional supplements, nootropic nutraceuticals, will be marketed under three subcategories: active, relax and focus.
Under the Distribution Agreement, Elegance has agreed to purchase USD30 million of H2C and Hushrooms branded products during the 24-month Launch Period and to distribute these products to retail outlets in respective legal states across the United States. Elegance shall purchase the products at a price of up to 130 % of manufactured costs (including all direct costs, both third party and internal) incurred by the Company. All prices are exclusive of applicable taxes, including without limitation, sales, excise, use and property taxes, which shall be paid by Elegance. The Distribution Agreement is expected to deliver up to USD9 million of profit (before tax) during the 24-month Launch Period.
During the period from the effective date of the Distribution Agreement until the Launch Period, which is expected to last up to six months, Elegance will provide certain consulting services to Halo including with respect to the development of branding, marketing, and manufacturing best practices, product development, and sales strategies through to launch. Pursuant to the Distribution Agreement, Halo has agreed to issue USD2.5 million of Common Shares (the “Elegance Shares”) to Elegance in consideration for the consulting services to be provided by Elegance in connection with the branding, development, manufacturing, and distribution of the H2C and Hushrooms product lines. The Elegance Shares will be issuable in four equal monthly tranches of USD625,000 per tranche. The number of Elegance Shares to be issuable under each tranche will be equal to the quotient of USD625,000 (converted into Canadian dollars using the prevailing Bank of Canada exchange rate), divided by the greater of: (I) the volume weighted average price of the Common Shares on the NEO (or such other exchange on which the Common Shares are principally traded) for the twenty (20) trading days prior to the issuance of such Elegance Shares; and (II) the minimum price permitted by the NEO. The issuance of such Elegance Shares is subject to, among other things, the approval of the NEO.
Refresco, the world’s largest independent bottler for retailers and A-brands in Europe and North America, announces it has entered into an agreement with The Coca-Cola Company to acquire three of its production locations in the United States. This transaction is subject to regulatory approval.
Hans Roelofs, CEO Refresco, comments: “The ongoing trend of A-brands outsourcing their production capabilities continues to provide opportunities for us as an independent beverage solutions provider. With manufacturing and supply chain being at the heart of our business, the acquisition of three Coca-Cola facilities in the US is another step forward in our growth strategy.”
Brad Goist, COO Refresco North America, adds: “Adding three hotfill production sites to our footprint is a great opportunity to further enhance our offering. I am convinced that our Retail and A-brand customers across North America will be able to benefit from our extended capabilities and broadened geographical footprint.”
The prospective transaction includes three production facilities in Truesdale (Missouri), Waco (Texas) and Paw Paw (Michigan), and involves long-term agreements for contract manufacturing activities. Refresco will become one of Coca-Cola’s strategic third-party contract manufacturers in the United States.
This acquisition is well aligned with Refresco’s buy-and-build strategy, focused on further expanding and strengthening its manufacturing footprint across Europe and North America to service both retailers and A-brands.
All three hotfill production locations are highly complementary to Refresco North America’s current manufacturing footprint. Through the acquisition, Refresco further improves its proximity to its existing customer base and expands its technological capabilities.
- The transaction is subject to regulatory approval.
- Refresco will finance the transaction from its existing cash position.
- The financial terms of the transaction are not disclosed.
Aseppak has continued to develop its capabilities to design, analyze, test and produce food and beverages for the new generation of consumers.
Some of the challenges the food and beverage industry faces are staples like safety, cost and scalability. In an era of such great access to information for both consumers and companies new challenges have been made evident. These challenges require new approaches, especially when you are pursuing innovation.
Aseppak is steadily evolving into one of the premier innovation boutique shops for the food and beverage world by solving three important industry dichotomies:
- Creating products in a lab is one thing. Successfully launching a product to the public is another.
- The market demands fast innovation. Investors need optimal and efficient innovation.
- Consumers want new ingredients. Brands need to catch up while staying compliant.
In such a pursuit, Aseppak has joined forces with St. Croix ABF, a company dedicated to providing aseptic beverage co-packing services to brands who understand what it takes to innovate in today’s market.
The collective of companies has implemented a streamlined process that will pave the road for brands looking to innovate new beverages by the highest food safety standards. Current capabilities include a high acid pilot plant and testing facility and opening for low acid aseptic processing and packaging by first quarter 2021.
In an era where innovation is a requirement to survive, professionals need to develop plans that minimize risk and increase the chances of meeting the desired objectives. For decades, professionals in the product innovation universe have seen tons of value destroyed for the purpose of creating new value.
This is normal in most industries, yet the tech revolution has had an important impact in innovation in general for a variety of reasons. One of them being its ability to innovate with the consumer, in real time through the use of methods and concepts like Minimum Viable Products, open innovation and soft-launches.
Leading food and beverage companies have the opportunity to implement these concepts as well. Part of the answer is mindset, part of the answer is access to technology.
The reason why Aseppak continues to develop resources that will allow companies to prove concepts and validate product hypothesis at different levels: formula optimization, scalability, functionality, safety, flavor and health amongst the most important ones.
Some of these resources include bench top validation, aseptic testing, proof of formula scalability, packaging format exploration and rapid consumer and retailer feedback. There is a true sweet spot to be found in terms of the optimization of innovation projects that allows for more products to be successfully launched in less time.
On 3 November 2020, Coca-Cola European Partners announced it has entered into binding agreements to acquire Coca-Cola Amatil Limited (CCL), one of the largest bottlers and distributors of ready-to-drink non alcoholic and alcoholic beverages and coffee in the Asia Pacific region.
“This is a fantastic opportunity to bring together two of the world’s best bottlers to drive faster and more sustainable growth. Since the creation of CCEP four years ago, we have proven our ability to create value through expansion and integration. Now is the right time to move forward by taking on these great franchises and markets.
“The strategic rationale behind this transaction is compelling, solidifying our position as the largest Coca-Cola bottler by revenue. I am eager to apply our proven formula in Western Europe to Coca-Cola Amatil’s markets, including leadership in areas such as revenue growth management, in-market execution, digital and sustainability. However, I am equally excited and genuinely convinced that there will be many more opportunities as we move forward together with speed, scale, excellent people and a richer, more diverse culture.
“This larger platform will unlock enhanced value for our shareholders, all underpinned by an even stronger and more aligned strategic partnership with The Coca-Cola Company and our other brand partners. We look forward to executing on the ambitious growth plans ahead of us, as we build on the best of who we are and create a very exciting future together.”
CEO, Coca-Cola European Partners
Britvic announced it has reached agreement with PepsiCo for a new and exclusive 20-year franchise bottling agreement for the production, distribution, marketing and sales of its carbonated soft drink brands – including Pepsi, 7UP and Mountain Dew – in Great Britain. The new agreement extends the relationship, which commenced in 1987, to 31 December 2040 and includes the Rockstar energy brand, for which Britvic will take responsibility from 1 November this year.
Britvic also announced its intent for all plastic bottles in GB to be made from 100 % recycled plastic (rPET) by the end of 2022 – three years earlier than originally planned, and ahead of the previous target of 50 %. This will cover the entire GB portfolio of Britvic-owned and PepsiCo brands, and demonstrates both companies’ commitment to sustainability and to a healthier planet.
O-I Glass, Inc. and Germany’s Krones AG signed a strategic collaboration agreement that aims to elevate glass by innovating together and to jointly create solutions for the growing glass market.
“For O-I, glass is the preferred packaging solution in a world that increasingly values health, premium products and the environment. Not only does it maintain the integrity of the products and protects the environment, as customers and consumers intend, but it also offers magnificent opportunities for establishing brands and implementing sustainable solutions,” explains Andres Lopez, President and CEO at O-I. “This agreement is the first step that O-I and Krones are taking together in order to offer clients completely integrated, end-to-end solutions in the future.”
Focus areas include improvements in glass filling and packaging line speed and efficiency; enhanced agility and flexibility of responding to market trends; development of innovative and sustainable glass systems; and advancements in digital solutions such as direct-to-glass digital printing technology.
“In production facilities all over the world, the products of O-I and Krones are already encountering each other. So it was absolutely logical to improve still further the compatibility of Krones’ complete lines and the glass containers from O-I,” adds Christoph Klenk, CEO of Krones AG.
With this agreement, the two companies are combining O-I’s specialized knowledge of glass with Krones’ leading competence in manufacturing machines and filling lines for the food and beverage industries.
Chr. Hansen Holding A/S entered into an agreement to divest its Natural Colors business to the EQT IX Fund for a cash consideration of 800 EUR million on cash and debt free basis. The transaction is expected to close during the spring of 2021, subject to regulatory approvals.
This agreement concludes the strategic review of the Company’s portfolio announced in July 2020, where Chr. Hansen’s Board of Directors and the Executive Board decided to explore strategic options for the Natural Colors business as it does not share the microbial and fermentation technology platforms.
Mauricio Graber, CEO of Chr. Hansen, said: “The divestment of Natural Colors completes the Review part of our recently launched 2025 Strategy. Chr. Hansen can now focus on fulfilling the ambition of becoming a pure-play, microbial and fermentation company with industry leading, profitable growth. I am convinced EQT will be a great owner of the Natural Colors business which has a leading global position in the industry. During the process it has become clear that EQT showed the strongest conviction in the potential of the business, and the highest dedication to the future development of it. I want to thank all the employees of the Natural Colors business for their contribution to Chr. Hansen over many years, and wish them all the best in the future journey as an independent company.”
Mads Ditlevsen, Partner at EQT Partners, and Investment Advisor to EQT IX, commented: “We are immensely proud and humble of having been chosen as the future owner of Natural Colors. It is a high- quality and truly global business with a proud legacy of servicing customers all over the world for more than 100 years. We are highly impressed by the strong ESG profile, the high-quality organization and talented people we have met during this process, as well as the dedicated focus on food safety. Natural Colors fits very well with EQT’s thematic investment criteria and is operating in two of EQT IX’s five prioritized sub- sectors within Industrial Technology. EQT’s ambition is to help the business achieve further growth both organically and through acquisitions.”
Klaus Bjerrum, Executive Vice President of Natural Colors, said: “I am very pleased to announce EQT as the new owner of Chr. Hansen’s Natural Colors business. EQT has acquired our great business (pending closing) to grow it organically and inorganically based on our capabilities and organization, and not least our leading market position. It is my conviction that this marks a new and exciting chapter for us, and I am
excited to embark on this journey with EQT and all our talented employees around the world.”
Financial implications and outlook
Chr. Hansen’s long-term financial ambition is unaffected by the divestment. The proceeds from the divestment will reduce the leverage of Chr. Hansen, and will otherwise be utilized according to the capital allocation principles.
In the Chr. Hansen Annual Report, which will be released on October 8, the divested business will be presented as discontinued operations. The outlook for organic growth, EBIT before special items and free cash flow before acquisitions and special items for 2020/21, that will also be presented in the annual report, will not include the discontinued operations. Furthermore, the preliminary estimates of impacts of the transaction in 2020/21 will be part of the outlook.
Ball Corporation announced that it has executed two virtual power purchase agreements (VPPAs) in Europe – one for the Corral Nuevo project with wpd and one for the Brattmyrliden project with Falck Renewables – for a total of 93.4 megawatts (MW) of additional wind energy. These agreements are a testament to Ball’s long-term commitment to achieve and maintain 100 % renewable energy in Europe and will allow the company to address approximately 63 % of the European electricity load utilized in its aluminum beverage packaging plants (excluding Russia) with new renewable energy.
The wind developments in Spain and Sweden will collectively enable Ball to reduce its Scope 2 greenhouse gas emissions generated in Europe by approximately 60 % compared to 2019 – equivalent to the carbon reduction that would be provided by removing more than 47,000 passenger vehicles from the road annually. Ball’s commitment is to address 100 % of its electricity footprint in the region with clean power. The company’s regional strategy is to pursue PPAs when and where they are available and attractive. To the extent Ball has not achieved 100 % clean energy in the region through PPAs, the company is purchasing Energy Attribute Certificates (EACs). It recently announced the purchase of EACs to fully cover its operations in the European Union, Serbia and the UK through 2020.
“These milestone renewable energy deals in Europe affirm Ball’s steadfast commitment to reduce absolute carbon emissions within our operations and through our value chain,” said Kathleen Pitre, chief commercial and sustainability officer. “Both projects will allow us to address a substantial portion of our European electricity use with new wind energy and accelerate progress toward our recently approved science-based targets.”
In 2019, Ball was one of the top ten corporate renewable energy buyers in the United States. Last April, the company announced it had executed a wind and a solar VPPA for 388 MW of new renewable energy to address 100 % of its North American electricity load by 2021.
The VPPAs in Spain and Sweden demonstrate Ball’s industry-leading efforts to quickly expand on its renewable energy successes in North America as a major force driving new clean energy growth in global markets. Scheduled to come online in 2021, Ball’s share of the Corral Nuevo and Brattmyrliden wind projects will generate nearly 308,000 megawatt hours (MWh) of renewable electricity in Europe each year—equivalent to the electricity load of approximately 10 Ball beverage packaging plants.
Ball is the first company in the can making industry to adopt approved science-based targets, which seek to limit global warming to 1.5°C above pre-industrial levels. By 2030, the company aims to reduce absolute carbon emissions within its own global operations by 55 % and within its value chain by 16 % against a 2017 baseline.
The company recently achieved another first for global can manufacturers by earning Aluminum Stewardship Initiative Certification for all 23 of its EMEA beverage plants.
As the next step in its sustainability journey, Crown Holdings, Inc. has signed onto the Science-Based Targets initiative, a project that aims to spur corporate climate action in the transition to a low-carbon economy. To join the initiative, Crown will set specific goals for reducing greenhouse gas emissions in alignment with the Paris Agreement of 2015, through which international governments collectively pledged to limit the global temperature increase to 1.5 degrees Celsius.
In preparation for setting these ambitious new targets, Crown’s Chief Executive Officer, Timothy Donahue, has signed the commitment letter confirming Crown will develop new goals to be reviewed and approved by the SBTi committee. Crown plans to announce its goals in early 2020 and report on progress annually. In the interim, the Company continues to work toward achieving its 2020 Sustainability Goals and making additional strides in its ongoing commitment to the RE100 initiative.
“We have made tremendous progress toward our 2020 Sustainability Goals, which include a 10 % GHG reduction goal,” said John Rost, Ph.D., Vice President, Global Sustainability and Regulatory Affairs at Crown. “Committing to and striving to achieve science-based targets is the next natural progression for the Company. Our culture of safety, efficiency and resource conservation as well as the unrivaled sustainability profile of our primary product – metal packaging – will continue to play a critical role in our ability to meet our next set of milestones.”
Citrosuco, one of the world’s leading orange juice producers, has landed in Spain through an agreement with Cordoba-based Zumos Palma, a subsidiary of Turkish group Toksöz.
The Brazilian company, which bills around 1,200 M $ annually, has rented the factory in Palma del Río, with an option to purchase, which allows it to increase the production capacity of freshly squeezed juices.
These technologically advanced facilities with a capacity of 140,000 t (although currently being produced at around 55,000 t annually) belonged to the Pascual Group, which sold them in 2013 to Toksöz.
According to ABC, (daily newspaper published in Madrid) the agreement with Citrosuco includes the use of the fruit treatment plant and juice processing during the next three years, but not bottling lines. The Brazilian company, controlled by the Fischer and Votorantim groups, has the capacity to produce more than 600,000 t of juice each year, although mostly juice from orange concentrate, while the Zumos Palma plant specializes in 100 % expressed, the category that is growing the most within the sector, and which also implies a qualitative leap that would generate added value to Citrosuco.
This Brazilian group has four factories, 29 farms and five maritime terminals, as well as five ships and 45 own trucks for the distribution of its products. One of them is in the port of Ghent, from which it manages its logistics for Europe. It has commercial offices in Brazil, USA, Japan, China, Austria and Australia.
Four years of take-off
As for Zumos Palma, in the last four years, the brand ‘Zumosol’ has experienced a ‘renaissance’ , to be among the top ten national manufacturers of juices and nectars, according to the Alimarket Report 2017 on the sector. In 2016, Zumos Palma commercialized 65 Ml of juice (50 % with its own brand), compared to 25 Ml it sold in 2014, around 12 % to markets such as China, South Korea, USA, Turkey and Italy. In addition to ambient and refrigerated juices, it has sold since the year 2016 vegetable juices (‘Zumosol Veggies’ and ‘Jux’); and in 2017 expanded its catalog with lemonade (‘Limonísima’) ; and fruit juices 100 % squeezed in children’s format.
Zumos Palma closed the 2016-2017 campaign with a production volume of 55 M kg, compared to the forecast of 100 M, due to the campaign of reduced fruit and high prices of it.
Prodalim Group (Prodalim), one of the leading suppliers of juices, concentrates and multiunit blends, has entered into an agreement to acquire the Louis Dreyfus Company (LDC) juice facility in Winter Garden, Florida.
The facility will allow Prodalim to sell and distribute its portfolio of juices, concentrates and compounds to North American clients. Upon closing, Prodalim will also provide storage, blending and tank loading services to LDC under a long term agreement.
The 27-acre facility is located near Orlando and it includes tank farms, cold storage rooms and a state of the art blending and compounding facility. The tank farm has a storage capacity of more than 12 million gallons / 60 thousand tons in addition to cold storage capacity of more than 15 thousand tons in drums.
Louis Dreyfus Company is a leading merchant and processor of agricultural goods globally. The juice business has been a key pillar of its diverse portfolio for over 25 years, comprising farming, processing and logistics assets in more than seventy countries, with global sales reach for orange, apple, lemon and lime juices and byproducts. The core focus of the business is to produce quality juices to serve and partner with customers around the world.
This transaction is aligned with LDC’s ongoing business goals to focus on core business areas while expanding juice sales distribution. As one of the largest suppliers of orange juice in the world, and to North America in particular, LDC will continue to serve its customers across the region by offering a variety of fruit juices, sourced from different origins.
Cott Corporation announced that it has entered into a definitive agreement to sell its traditional beverage manufacturing business (“Cott Beverages”) to Refresco for USD $1.25 billion. The transaction includes Cott’s North America, U.K., and Mexico businesses (excluding the RCI International division and its associated concentrate facility as well as the Aimia Foods division).
For over 60 years Cott Beverages has been a leading manufacturer of a diverse mix of beverages for the retail trade and branded manufacturers and is one of the world’s largest producers of beverages on behalf of retailers, brand owners and distributors, producing multiple types of beverages in a variety of packaging formats and sizes, including carbonated soft drinks, 100 % shelf stable juice and juice-based products, energy drinks, clear, still and sparkling flavored waters, sports drinks, new age beverages, ready-to-drink teas, freezables and ready-to-drink alcoholic beverages.
Cott Beverages generates approximately $1.7 billion in revenues and has a strong and experienced management team with longstanding customer relationships in North America and the United Kingdom. Subsequent to the closing of the transaction, Cott Beverages’ leadership team will report to the Executive Board of Refresco.
The transaction is expected to:
- Improve top-line growth and stability
- Enhance overall gross profit and EBITDA margins
- Significantly reduce net leverage
- Reduce customer concentration
- Reduce commodity exposure
- Shift Cott’s core focus to the growing categories of water, coffee, tea and filtration
The acquisition, which is expected to close in the second half of 2017, is subject to certain closing conditions including regulatory approval, Refresco shareholder approval, and working capital adjustments.