Nestlé acquires majority interest in Blue Bottle Coffee
Agri-Business I Diary I Confectionery I Meat & Poultry I Food processing
RDIF and TH Group to invest in Russian Agriculture
UAE unveils US$ 1.5 billion Dubai Food Park at Dubai Wholesale City
Post Holdings will acquire Bob Evans for US$ 1.5 billion
THE DEFINITIVE SOURCE FOR INVESTMENT PROMOTION EXECUTIVES
Mars Inc. will acquire VCA for US$ 9.1 billion
Pilgrim's acquires Moy Park for US$ 1.3 billion
Post Holdings will acquire Bob Evans for US$ 1.5 billion
Post Holdings, Inc. and Bob Evans Farms, Inc. announced that they have entered into a definitive agreement in which Post will acquire Bob Evans for $77.00 per share. The highly complementary combination will significantly strengthen Post’s portfolio of brands, expand choices for customers and increase Post’s presence in higher growth categories of the packaged food market.
Founded in 1948, Bob Evans is a leading producer and distributor of refrigerated potato, pasta and vegetable-based side dishes, pork sausage, and a variety of refrigerated and frozen convenience food items under the Bob Evans, Owens, Country Creek and Pineland Farms brands. Bob Evans also has a growing foodservice business, representing approximately 35% of volume. The foodservice business sells a range of products, including sausage, sausage gravy, breakfast sandwiches and side dishes, which are made to match individual customer specifications.
The addition of Bob Evans’ highly complementary portfolio of brands and products will meaningfully enhance Post’s refrigerated side dish offering, provide Post with a presence in breakfast sausage and will immediately provide Post with a leading position in the higher growth perimeter of the store. The combination with Bob Evans will also strengthen Post’s presence in commercial foodservice, create opportunities for future growth and enhance Post’s position as one of North America’s largest packaged food companies.
“We have enormous respect for Bob Evans’ success and are excited about the growth opportunities this combination will create,” said Rob Vitale, President and Chief Executive Officer of Post Holdings. “Combining with Bob Evans expands our portfolio of top brands and gives Post a leading position in the perimeter of the store. We look forward to welcoming the talented Bob Evans team to Post and working to create a successful future together.” Read more...
Read full article on globalfdi.net
Mars, Incorporated will acquire VCA Inc. for
US$ 9.1 billion
Mars, Incorporated and VCA Inc. announced that they have entered an agreement under which Mars will acquire all of the outstanding shares of VCA for $93 per share, or a total value of approximately $9.1 billion including $1.4 billion in outstanding debt.
VCA joins Mars Petcare, one of the world’s leading pet care providers. Pet care has been an important part of Mars for over 80 years. The transaction reaffirms Mars’ commitment to the pet care industry and the veterinary profession, and once completed will help drive Mars Petcare’s purpose to create A Better World for Pets.
Mars Petcare’s portfolio of Veterinary Services businesses includes BANFIELD® Pet Hospital, BLUEPEARL® and PET PARTNERSTM. Together with VCA, these businesses will provide an unprecedented level of access to high quality veterinary care for pets, from wellness and prevention to primary, emergency and specialty care. Mars Petcare is already an industry leader in pet nutrition with global brands that include ROYAL CANIN®, PEDIGREE® and WHISKAS®. Mars has a growing business in pet DNA testing through the WISDOM PANEL®, and in 2015 also acquired pet technology provider WHISTLE.
“We are thrilled to welcome VCA to the Mars family and to our portfolio of brands and businesses around the world,” said Mars Chief Executive Officer Grant F. Reid. “VCA is a leader across pet health care and the opportunity we see together—for pets, pet owners, veterinarians and other pet care providers —is tremendous. We have great respect for VCA, with whom we share many common values and a strong commitment to pet care. Together, we will be able to provide even greater value, better service and higher quality care to pets and pet owners.”
Pilgrim's acquires Moy Park for US$ 1.3 billion
Pilgrim's Pride Corporation announced that it has acquired Moy Park, a leading poultry and prepared foods supplier with operations in the United Kingdom and Continental Europe, from JBS S.A., in a transaction valuing the equity interest of Moy Park at approximately $1.0 billion , implying an enterprise value of approximately $1.3 billion .
The transaction was unanimously approved by a Special Committee of the Pilgrim's Board of Directors. Comprised entirely of independent equity directors elected to the Board by a vote controlled by the shareholders unaffiliated with JBS S.A., the Special Committee was delegated the full authority of the Pilgrim's Boards of Directors with respect to the transaction.
"We are pleased to announce the acquisition of Moy Park, which will position Pilgrim's to become a global player, with an improved and more stable margin profile on the chicken business and an expanded portfolio of prepared foods," said Bill Lovette, Pilgrim's Chief Executive Officer.
"Following our successful acquisitions of GNP and the assets in Mexico, Moy Park represents a logical next step in the evolution of our geographical and brands footprint. The acquisition gives us access to the attractive UK and European markets, which advances our strategy of diversifying our portfolio to be more global while reducing volatility across our businesses. We will have new business opportunities through the addition of Moy Park's fully integrated poultry production platform and its strong presence in prepared foods. Moy Park strengthens Pilgrim's' leading portfolio of brands and brings strong value-added innovation capabilities, access to new markets, a best-in-class production platform and strong farmer partner relationships. In addition, Moy Park shares Pilgrim's long-standing commitment to become the best and most respected company in our industry."
Bimbo Group Invests $129 mn In Its Distribution Center In Mexico
Grupo Bimbo, a multinational company of Mexican origin, placed the first stone of its new Metropolitan Distribution Center, located in the Azcapotzalco Delegation of Mexico City. It aims to increase the logistics capacity of the company and improve productivity and distribution efficiency.
The event was attended by the Head of Government of Mexico City, Dr. Miguel Angel Mancera; the Secretary of Economic Development, Mtro. Solomon Chertorivski; and the Deputy Chief of Azcapotzalco, Dr. Pablo Moctezuma; as well as Mr. Daniel Servitje, President and CEO of Grupo Bimbo; Mr. Javier González Franco, Deputy General Manager of Grupo Bimbo and Mr. Miguel Ángel Espinoza, General Manager of Bimbo Mexico. Also present were the Secretary General of the National Executive Committee of the National Syndicate of Workers, Bakers, Food, Transportation and Trade, Similar and Related of the Mexican Republic, C. Gerardo Cortés García, and the Federal Deputy for District VIII, Dr Vidal Llerenas.
With an investment of 2,300 million pesos, the Metropolitan Distribution Center of Grupo Bimbo will operate with the latest technology in automation and inventory control, to supply sales centers and routes that serve more than 200 thousand customers, its products to the families of the Megalopolis, in a more efficient and sustainable way.
Thus, Grupo Bimbo will launch the largest and most modern Distribution Center in the baking industry in the American continent, which reaffirms its vocation for constant innovation.
"In Grupo Bimbo we bet on our country and Mexico City; this is where Bimbo was born more than 70 years ago and grew into a leading company in the world , "said Daniel Servitje, President and CEO of Grupo Bimbo.
UAE unveils US$1.5 billion Dubai Food Park at Dubai Wholesale City
DUBAI, United Arab Emirates, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has unveiled the blueprint for Dubai Food Park (DFP), the latest addition to Dubai Wholesale City (DWSC).
To be developed at a cost of US$1.5 billion, first destination in the Middle East dedicated to serving the food sector. DFP seeks to enhance Dubai’s position as a leading regional hub for food trade, import, export and re-export of foodstuffs. Conceptualized at a time when food trade makes up 11 percent of the UAE’s GDP and the food industry is estimated to grow by 70 percent to US$6.3 billion by 2030, the Park will offer all categories of food wholesale services to meet the high demand of the food sector in the UAE and the wider region.
DFP will span over 48 million square feet within DWSC, the largest wholesale hub in the world occupying 550 million square feet that will take shape over a 10-year period at an estimated cost of US$8.2 billion. The Park’s strategic location at the crossroads of East and West and easy accessibility to Dubai’s advanced logistics facilities distinguish it from other wholesale destinations worldwide.
DFP will fall under the supervision and responsibility of Abdulla Belhoul, CEO of Dubai Wholesale City. Speaking on the project, Belhoul said: “DFP has been established to meet the increased need for specialized logistical services to reduce supply chain costs. The Park will be a one-stop destination for government, administrative and logistical services related to food wholesale, import, export and re-export.”
Cargill and Faccenda Foods agree to establish a poultry joint venture in UK
Cargill and Faccenda Foods have agreed to establish a joint venture to create a leading UK food company focused on chicken, turkey and duck. The new company will have the capability to respond to changing customer needs in the retail and food service sectors with a strategy for growth. The formation of this joint venture is subject to clearance by the relevant regulatory authorities.
Cargill’s fresh chicken business in the UK is going to join Faccenda’s fresh chicken, turkey and duck business to form this new company. The new joint venture will be a standalone business, with Cargill and Faccenda taking an equal shareholding. It brings together two complementary businesses with a track record of success, shared values and a strong reputation in the UK poultry market.
Andy Dawkins, managing director for Faccenda Foods, will be appointed Chief Executive Officer of the newly formed company. Chris Hall, fresh chicken director for Cargill Meats Europe, will be appointed Chief Commercial Officer of the new joint venture.
The new business plans to employ approximately 6,000 people in the UK, with employees coming from both parent companies. It will operate across multiple agriculture and operational centres, with broad capabilities that span the supply chain focused on operational excellence and customer focused partnerships.
“We believe the two organisations are complementary. Combining into one entity allows us to build on our strengths, grow in the market and better serve our customers. The venture will facilitate greater opportunities to innovate and deliver new and exciting poultry products for consumers,” explains Chris Langholz, President of Cargill Poultry.
Ian Faccenda, Chief Executive Officer of Faccenda Investments, continues, “Both Cargill and Faccenda are recognised today by their customers for their high standards and great service. The new joint venture confirms our long-term commitment to being a responsible partner across the entire supply chain, providing stability and security to our customers, suppliers and growers for years to come.”
Nestlé announced that it has acquired a majority stake in Blue Bottle Coffee, a high-end speciality coffee roaster and retailer based in Oakland, California.
Over the last 15 years, Blue Bottle Coffee has achieved iconic status amongst discerning coffee drinkers. It offers one of the highest quality coffees available, with an uncompromising attention to taste, freshness and sustainability.
The company operates coffee shops in major US cities and in Japan, with a unique minimalist style that also incorporates elements of the surrounding neighbourhood. The total number of Blue Bottle Coffee shops is expected to reach 55 by the end of 2017, up from 29 at the end of last year. Blue Bottle Coffee has also launched super premium ready-to-drink and roast and ground products, sold online and in the retail market.
Blue Bottle Coffee will continue to operate as a stand-alone entity, while having full access to Nestlé’s well-recognised capabilities in coffee and its strong global consumer reach. The current management and employees will retain a minority stake and continue to run the business with the same entrepreneurial spirit that has made the brand so successful. That includes Bryan Meehan remaining as CEO and founder James Freeman as Chief Product Officer.
With the acquisition of Blue Bottle Coffee, Nestlé is entering the fast-growing, super premium coffee shop segment with an iconic brand for discerning coffee drinkers. Blue Bottle Coffee allows Nestlé to strengthen its position in the US coffee market, the largest in the world, as well as internationally, building on success in Japan. It also offers opportunities to grow in super premium ready-to-drink and roast and ground coffee, largely through online subscription.
Blue Bottle Coffee CEO Bryan Meehan: “My goal as CEO has been to secure a sustainable future for Blue Bottle Coffee that would enable it to flourish for many years to come. I’m excited to work with Nestlé to take a long-term approach to becoming a global leader in speciality coffee. We felt a real kinship with the team and knew it was the right move for us.”
Müller will invest US$ 135 million over the next three years to develop, manufacture and market a new generation of branded and private label yogurt and desserts products, made from milk produced by British farmers.
Already the UK’s favourite yogurt and desserts brand picked from supermarket shelves 208 million times each year*, Müller aims to strengthen its leadership in parts of the category where it is already ever-present whilst introducing exciting new branded and private label products where it is currently absent.
The company plans to further grow and innovate brands including category leader Müllerlight, Müller Corner and Müller Rice, and aims to broaden their usage occasions and availability. Müller will also build on its successful licensing agreement with Mondelez to develop its range of Cadbury products, including entry to new segments of the desserts sector.
To accommodate its plans, capacity and capabilities at its three sites in Shropshire will be further upgraded, including doubling the size of the Telford facility by 2020.
Müller will also increase its marketing spend by almost 25% over the next three years, ensuring that its growing portfolio of branded products benefit from sustained and focused support in line with the company’s ambitions.
Plans for its yogurt and desserts business are guided by a category vision which identified a potential £233m of yogurt and desserts category growth by 2020, to be delivered by bringing excitement, innovation and game changing new products to the market.
Already this year, Müller has successfully introduced a range of ‘Big Pot’ yogurts, its first ever whipped fat free Greek style yogurt and its first branded shareable dessert.
Müller invests US$ 135 million in UK Yogurt & Desserts business
The International Fund for Agricultural Development (IFAD) and Mars Incorporated signed a Memorandum of Understanding (MOU) to work to increase incomes and economic opportunities for thousands of smallholder farmers in developing countries.
IFAD President, Gilbert F. Houngbo, and Frank Mars, Board Member of Mars Incorporated, signed the MOU on the side lines of this week’s United Nations General Assembly in New York. The agreement outlines how IFAD and Mars will work together to provide farmers in Mars’ extended supply chain with greater access to the tools, technology and training that will help them improve their livelihoods.
Three quarters of the world's poorest people and most undernourished people live in rural areas and depend on agriculture and related activities for their livelihoods. Yet millions of rural people lack the resources, training and infrastructure to change their lives.
“Agriculture can generate great prosperity for smallholder farmers and it can lift millions out of poverty, create new jobs and business opportunities for rural people, especially youth,” Houngbo said. “We look forward to working with Mars to further develop the potential of smallholder farming, by improving the sustainability of their production and opening doors to new markets.”
The signing of the MOU follows the launch of Mars’ Sustainable in a Generation plan, in which it will invest $1 billion over the next few years to tackle urgent threats including climate change, poverty in the supply chain and scarcity of resources. As part of the plan, Mars has announced an ambition to meaningfully improve the working lives of one million people in its value chain to enable them to thrive. Read more...
IFAD and Mars to working together to improve livelihoods of farmers in Developing Countries
Pagoda's meeting for global suppliers convened in Hong Kong. More than 200 people from Zespri in New Zealand, SunWorld in the U.S.A., AgroFresh in the U.S.A. and other giant farms from more than ten other international fruit producing countries and regions attended the meeting. This year's supplier meeting was the largest in scope since Pagoda started hosting them 15 years ago. It was also the first time the meeting has taken place in Hong Kong.
Among all the activities that night, the one that attracted the most attention was the ceremony in which Pagoda signeda cooperative agreement with the global tycoon in supplying technologies to preserve fruits -- AgroFresh. Holding all guests present as witnesses, the chairman of Pagoda, Yu Huiyong, and AgroFresh's CEO, Jordi Ferre, contractually agreed to jointly set up an after-harvest processing center for fruit in China. Both parties will invest in the project and devote efforts to researching the difficulties of processing fruit after harvest. This way they will be able to reduce the damage done to fruit during the transportation and storing periods, and they will be able to guarantee the freshness and quality of fruits, and increase the market value.
The firm AGroFresh was founded in 1999. Its headquarters are located in Philadelphia, Pennsylvania. It is the sole owner of the patent of SmartFresh, a smart quality system. Currently they are registered and active in more than 40 countries all over the world. The smart quality system -- SmartFresh is a technology that preserves fruits using 1-MCP (1-methylcyclopropene). It mainly helps vegetables and fruits that are easily damaged during long transportation or storage periods, keeping away the ethylene from internal and external sources which usually would cause fruit to ripen, and thus maintaining freshness and good quality. The technology can also maintain the thickness, veins and appearance of fruit during transportation and storage, keeping the fruit fresh at all times. It is currently the most effective technology available to keep fruit fresh. The technology is already widely used in developed countries to preserve fruit, vegetables and plants or flowers, but has only now officially received the permission of the Chinese agricultural industry's examination office to register in China.
Pagoda and AgroFresh sign agreement to supply fruit preserving tech
Obela, part of the global international Dips and Spreads company, a Joint Venture held by Pepsico and Strauss Group, will start selling Hummus products in Germany. Obela will initially sell five Hummus products which include Classic Hummus, Hummus with sun-dried Tomatoes, Hummus with roasted pine nuts, Hummus with Garlic and Mediterranean Hummus all in packs of 175 grams.
The sales in Germany follow the successful acquisition of Florentine, a Netherlands based company in June 2017 and the establishment of a dedicated production line for Obela at the Florentine premises.
Shali Shalit, CEO of Sabra (responsible for the international operations under the Obela brand name): “We are excited to continue our global journey and translate our love for Hummus as a tasty, healthy and connecting product, into additional countries. Our experience coupled with our uncompromising use of the highest quality raw materials and production processes, have turned Sabra and Obela’s Hummus products into global leaders and the Dips and Spreads JV of Pepsico and Strauss to the most meaningful global company in the space.
Obela expands into Europe with launch of German Operations
Sinar Mas Cepsa inaugurated its first oleochemical plant in Indonesia, which has meant an investment of 300 million euros in the last 2 years. The plant will produce fatty alcohols from sustainable palm kernel oil, a key ingredient in the manufacture of everyday products such as household cleaning or personal care.
Sinar Mas Cepsa is a joint venture (JV) between Cepsa, an integrated energy company, the world leader in the production of linear alkylbenzene (LAB), a raw material used for the manufacture of biodegradable detergents; and Golden Agri -Resources (GAR), a subsidiary of the Indonesian Sinar Mas Consortium and the world's second-largest vertically integrated palm oil company.
The opening ceremony of the plant in Dumai (Sumatra) was attended by representatives and senior figures of the Indonesian Government, such as the Minister of Industry.
Pedro Miró, CEO of Cepsa, has said that "chemical business is key to our growth strategy. We have a diversified portfolio of products and we are leaders in the areas in which we operate in the chemical industry. Entering the value chain of fatty alcohols is another step in our internationalization plan and, of course, we do it with the best possible partner.
The CEO of Sinar Mas Cepsa, Kung Chee Whan mentioned that "the Dumai plant, the second joint venture factory, takes advantage of Cepsa's technology and know-how in oleochemicals and relies on GAR for the raw material. Having already consolidated our presence in Europe by acquiring a surfactant plant in Germany, we will study both the possibility of new joint projects downstream and the expansion of our capabilities in this part of the world. "
Sinar Mas Cepsa inaugurates first oleochemical plant in Indonesia
Tulip Ltd invest in the UK Farming
Leading food company Tulip Ltd, part of the Danish Crown group, has announced its acquisition of UK pig producer Easey Holdings Ltd
Easey Holdings Ltd is a family-owned pig farming operation consisting of four key divisions - breeding herds (sows), growing herds, a veterinary practice and a livestock transport business. Tulip Ltd has reached an agreement of terms with the current owners of Easey Holdings Ltd and completed the acquisition on Friday 8th September 2017. Tulip is seeking regulatory approval from the Competition & Markets Authority.
This acquisition represents an investment in British farming and also inward commitment to the UK by Tulip Ltd’s parent company Danish Crown - a cooperative owned by 7,600 Danish member farmers - thus further reinforcing the organisation’s commitment to global farming.
Andrew Saunders, Agriculture Director at Tulip Ltd’s farming division, Tulip Agriculture, explained:
“Customer demand is rising for pigmeat produced to high welfare standards supported by strong provenance credentials. This acquisition forms part of Tulip Ltd’s strategic objective to further support the UK pig farming industry, allowing us to more effectively utilise our skills and expertise, capitalising on our industry-leading best practices which have been developed by farmers, vets and other experts within the organisation”.
IFC helps LDBI to finance the Liberian SMEs & Agriculture
IFC, a member of the World Bank Group, announced an advisory services agreement with the Liberian Bank for Development and Investment to develop scalable and sustainable agrifinance and support small and medium enterprises banking operations.
IFC will provide specialized advisory services to strengthen LBDI’s risk management processes and tools, with a focus on agribusiness and SME lending. The advisory services will improve the bank’s customer value propositions including systems and products while also building the capacity of LBDI’s staff working on agribusiness and SME lending. IFC support will help LBDI to expand its services to these key segments in Liberia and promote more access to finance opportunities in the country.
LBDI, which was originally created by the government of Liberia, is working to promote the creation and expansion of small, medium and large businesses including in key sectors such as agriculture. The bank aims to encourage inclusive economic growth in Liberia by expanding financial services opportunities in the country.
Unilever announced that it has acquired the organic herbal tea business, Pukka Herbs Ltd.
Pukka Herbs Ltd was founded in 2001 by Tim Westwell and Sebastian Pole. With 100% certified, organic and ethically sourced ingredients, Pukka’s health and wellness philosophy centres around benefitting people, plants and planet. This represents a clear synergy with Unilever’s own sustainable living plan.
The pioneering British brand has a turnover of over £30m and growth of around 30%. It is also growing rapidly across Europe and the US. According to Euromonitor 2016, Pukka is the fastest growing organic tea company in the world. The herbal, fruit and green tea market is currently worth €1.6bn* which trends suggest will become even more prominent globally in the future.
“Both of us believe in business being a force for good in society. Tim and Sebastian have cultivated Pukka into a successful business without compromising their ingredients or their ideals. The acquisition strengthens our tea business, addressing a gap in our portfolio. Pukka is a premium player in the natural, organic, health and wellness segment which is fast-growing, attractive and scalable. We look forward to bringing Pukka to even more consumers.”
In an important step toward financing its first post-war agricultural investment project in Iraq, the UN’s International Fund for Agricultural Development (IFAD) met with a high-level Iraqi delegation in Rome last week. The project will target 20,000 rural households in the poorest southern governorates of Missan, Thi Qar, Qadissiyah and Muthana.
The delegation was welcomed by Khalida Bouzar, IFAD's Director for the Near East, North Africa and Europe, along with her team from the regional Division.
“The rationale for the current project stems from the fragility of Iraq and IFAD’s commitment to assist countries with fragile situations. IFAD has significant experience in areas in which the Government of Iraq needs assistance, such as agriculture and rural development,” said Bouzar. “Investment in agricultural growth is not only important to growth in national income, but is also vital to growth in employment, food and nutrition security and reduction of poverty in Iraq.”
During the meeting, Bouzar expressed her confidence that the new project would be a milestone for IFAD and Iraq. “This will be an example of the stronger and more efficient collaboration that characterizes the renewed partnership between IFAD and Iraq’s government,” she said.
Iraqi Ambassador Ahmed A.H. Bamarni thanked IFAD for its promptness in creating the project, and said that he believed the project would directly support the Iraqi government’s reconstruction efforts following years of conflict.
IFAD and Iraq invest in new partnership to revitalise smallholder Agriculture
13 F, Gopala Towers, 25 Rajendra Place
New Delhi - 110008, India
Nestlé USA to acquire
Nestlé USA announced that it has agreed to acquire Sweet Earth, a plant-based foods manufacturer based in Moss Landing, Calif. The acquisition gives Nestlé immediate entry into the plant-based foods segment, which is growing by double digits and expected to become a $5 billion market by 2020. Sweet Earth’s portfolio spans all meal occasions, diversifying Nestlé’s offering beyond its existing category leadership in meals and snacks.
Launched in 2011 by co-founders Kelly and Brian Swette, Sweet Earth’s award-winning frozen meals, burritos, breakfast sandwiches, and chilled plant-based burgers and proteins are sold in more than 10,000 stores, including independent natural grocers, Whole Foods, Target, Kroger and Walmart.
Sweet Earth produces its product lines (48 items) in a 40,000-square-foot facility at its Moss Landing headquarters. Sweet Earth’s on-trend products feature global flavors and plant-based proteins like seitan (wheat-based), tofu and legumes like lentils, chickpeas and beans. Sweet Earth’s products span three core platforms: entrees, breakfast and plant-based proteins, called Righteous Meats®. The products are wholesome, nutritious, and include a variety of vegan and ethnic-inspired choices such as General Tso’s Tofu and the Curry Tiger Burrito.
In response to strong consumer demand for chicken, Tyson Foods, Inc., announced plans to build a $320 million poultry complex in eastern Kansas.
The company will construct a processing plant, hatchery and feed mill near the city of Tonganoxie, in Leavenworth County, which will employ approximately 1,600 people and contract with northeast Kansas farmers and ranchers to raise chickens. The operation, currently scheduled to begin production in mid-2019, will produce pre-packaged trays of fresh chicken for retail grocery stores nationwide.
“More people want fresh food and as one of the world’s leading protein companies, we’re well-positioned to provide it,” said Tom Hayes, president and CEO of Tyson Foods. “We believe this new operation, which will incorporate the latest production technology, will enable us to meet the sustained growth in consumer demand for fresh chicken.”
The poultry plant will be capable of processing 1.25 million birds per week, increasing Tyson Foods’ overall production capacity. The payroll and payments to farmers from the new operation, along with its purchase of grain and utilities, is expected to generate an annual economic benefit to the state of Kansas of $150 million.
“Kansas will be an outstanding home for this Tyson complex,” said Governor Sam Brownback. “Growing Kansas means we must grow the food and agriculture sector which accounts for nearly 45 percent of the state’s economy. The far-reaching impact of this development will be felt by farmers, ranchers, agribusinesses and communities throughout eastern Kansas. This is a step in the right direction to further diversify and grow our state’s economy.”
“Tonganoxie is looking forward to a successful partnership with Tyson Foods,” said Tonganoxie Mayor Jason Ward. “We have planned for a development of this type for many years by making strategic investments in public infrastructure targeted to support future industrial growth. This project will bring much anticipated opportunities for local residents to enjoy the quality of life benefit of working close to home. Tyson has a long history of support for small towns and local markets. They will be a great fit for our community.”
Tyson Foods to build a $320mn poultry complex in Kansas
Agropur Cooperative and Agrifoods International Cooperative Ltd. – two of Canada’s leading dairy cooperatives – announced that they have concluded an agreement pursuant to which Agropur will become the sole owner of Ultima Foods Inc.
Ultima Foods was a 50-50 joint venture by two of Canada’s leading cooperatives; Agrifoods and Agropur. With more than 40 years of expertise in the yogurt business, Ultima Foods has been a consistent success in terms of market share and is known as a major innovator in the yogurt category. Today, Ultima Foods is renowned for its iögo and Olympic brands, which registered industry-leading growth in 2016.
Both cooperatives are very pleased with the transaction and excited for what lies ahead:
“I am very pleased with this transaction. Our partnership with Agrifoods has been exceptional and I want to thank our partner for its historical commitment in jointly developing Ultima Foods. This transaction continues along the course we have charted and will support our long-term development in the yogurt category,” said René Moreau, President of Agropur. “We are always very proud when we are able to keep processing assets in the hands of Canadian dairy farmers.”
“We are proud that our successful partnership with Agropur resulted in Ultima Foods becoming an industry leader with brands enjoyed by Canadians from coast to coast,” said Tim Hofstra, President and Chair of Agrifoods. “This is a very positive transaction as it will create the optimal condition for Ultima Foods’ development and will enable the company to remain in the hands of Canadian dairy producers.”
Agropur acquires Agrifoods’ interest in Ultima Foods
The Russian Direct Investment Fund (RDIF) and Vietnam’s largest agricultural conglomerate TH Group have agreed to jointly invest in agricultural projects in Russia, with a focus on dairy farming and milk processing in the Far East of Russia. The agreement was signed prior to the Eastern Economic Forum in Vladivostok.
Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said:
"There is great potential for increasing production efficiency in the Russian dairy industry through the construction of high-tech farms and the implementation of best practices in cattle farming and milk processing. TH Group has previously invested in Russia, and has essential expertise and ability to increase the quality and efficiency of domestic milk production."
Russian Direct Investment Fund (RDIF) is Russia's sovereign wealth fund established in 2011 to make equity co-investments, primarily in Russia, alongside reputable international financial and strategic investors. RDIF acts as a catalyst for direct investment in the Russian economy. RDIF’s management company is based in Moscow.
Bimbo invested $86 Million in its new plant at Tenjo in Colombia
With an investment of US $86 million, Bimbo de Colombia inaugurated its new production plant and distribution center in Tenjo, Cundinamarca, which has a capacity of 8 tons per hour, four lines to make hamburger bread, snacks, as well as puff pastry, a new category in which it did not compete in Colombia, and will contribute a significant percentage to projected sales for 2017. After a year of construction, the plant is located in the Motorway Medellín kilometer 11.5, Industrial Park of Bimbo.
The inauguration ceremony was attended by the President of the Republic, Dr. Juan Manuel Santos Calderón, as well as Mr. Daniel Servitje, President and CEO of Grupo Bimbo, Mr. Gabino Gómez, Deputy General Manager of Grupo Bimbo, Mr. Esteban Giraldo, General Director of the Latin Organization of Grupo Bimbo, Mr. Carlos Ignacio Gallego, President of Nutresa, and Mr. Fernando López, General Manager of Bimbo of Colombia.
Fernando López, said that these new facilities expand production capacity to meet current demand, and generate 270 new direct jobs in addition to the existing 3,800.
Grupo Bimbo is a Mexican company, world leader in the baking industry with more than 70 years of history and with presence in 24 countries in America, Asia, Africa and Europe. Locally it has 88% brand recognition among Colombians and has three strategic business units: Panificadores Familiares, Pan Dulce and Soluciones, which presented double-digit growth in 2016. That same year, a significant percentage of sales came from innovation products and entered the frozen bread segment with the acquisition of the company Panettiere.
IFC Supports Myanmar’s Agricultural Sector to Improve its Productivity and Quality
IFC, a member of the World Bank Group, signed an advisory agreement with Myanmar’s Ministry of Agriculture, Livestock and Irrigation (MoALI) to support its efforts with boosting sector productivity, quality and skill development. The technical assistance program is supported by the Department of Foreign Affairs and Trade of Australia, the Department for International Development of the United Kingdom and the Government of Japan.
The country’s agricultural sector is a key pillar of the economy and provides employment to about 53 percent of the labor force and is a source of livelihood for about 70 percent of the rural population. Through this agreement, IFC’s technical assistance will support the government’s objective of increasing the productivity, market access and competitiveness of the agricultural sector by improving the provision of quality inputs to farmers. As a driver of growth and innovation, the private sector will play a significant role in assuring quality seeds, fertilizer and crop protection products reach farmers efficiently. A strong balance between efficient markets and effective regulation is needed along with an improved way of working together for the government and private sector.
“IFC’s emphasis on improving the use of agricultural inputs and strengthening quality standards of agricultural products is aligned with MoALI’s mission. I am confident that this project will be supportive to our agriculture sector development and fulfill our vision for the future,” said Dr. Aung Thu, Minister of Agriculture, Livestock and Irrigation.
IFC will also assist with establishing quality standards for key export commodities, such as rice, and local food processing, while helping farmers to develop skills related to the use of agricultural inputs and improved quality standards. In July, IFC and MoALI held a one-day workshop in Nyuang Shwe, which brought together over 200 tomato farmers to discuss Good Agricultural Practices and the importance of improving and reducing the use of chemicals on their floating farms to protect Inle Lake.
Premier Foods announces it has completed the signing of a strategic global partnership with Mondelēz International to renew the Company’s long-standing licence to produce and market Cadbury branded cake and ambient dessert products.
The key terms of partnership includes:
The new partnership is effective from 1 September 2017 and will run until 2022, with an option for the Company to extend this to 2025, subject to meeting certain performance criteria.
Total number of licenced countries expands to 46 (previously 10 countries) and now includes South Africa, Canada, Japan, China and India, amongst others.
otential to use the full range of Cadbury brands in ambient cake such as Flake, Crunchie, Caramel and Marvellous Creations in addition to the Oreo brand.
Gavin Darby, Chief Executive Officer, Premier Foods, said:
“Building on a relationship which now spans over 30 years, we are delighted to have completed the signing of this new strategic global partnership with Mondelēz International, and we look forward to working with them in years to come. We are particularly pleased about the expanded scope of geographies and brands, given the opportunity this provides us to further accelerate the growth of Premier Food’s International Business”.
Premier Foods and Mondelēz International extends Cadbury cake Partnership
Eagle Foods announced the closing of its acquisition of Popcorn, Indiana, the maker of the well-known ready-to-eat ("RTE") popcorn products, as part of the Company's continued initiative to increase its snacks portfolio.
Popcorn, Indiana is one of the leading brands in the Ready-to-Eat (RTE) popcorn category, with a wide array of unique flavors and product offerings, including classic Kettlecorn and indulgent Black & White Drizzlecorn.
Popcorn, Indianastrategically complements Eagle Foods' G.H. Cretors brand and private label popcorn offerings, which include The Mix, a 50/50 caramel and cheese product. The acquisition will also increase Eagle Foods' scale and importance in the high growth RTE popcorn category, which has been growing at 5-6% annually. This growth is significantly faster than the broader snacking category, as consumers' desire for clean label, flavor forward, better-for-you-options continues to spur growth.
In addition to its growing snack platform, Eagle Foods has a significant presence within the baking aisle. Eagle Foods is a leading manufacturer of canned milk, which includes the category branded leader, Eagle Brand Sweetened Condensed Milk. In addition, the Company offers a portfolio of canned milk brands, including PET Evaporated Milk, Magnolia, Milnot, and others. Within canned milk, the Company also has a significant presence in private label.
Eagle Foods Announces Acquisition of Popcorn, Indiana
Ten years on from the global financial crisis, the prospects for a sustained economic recovery remain at risk due to a widespread failure on the part of leaders and policy-makers to put in place reforms necessary to underpin competitiveness and bring about much-needed increases in productivity, according to data from the World Economic Forum’s Global Competitiveness Report 2017-2018.
For the ninth consecutive year, the report’s Global Competitiveness Index (GCI) finds Switzerland to be the world’s most competitive economy, narrowly ahead of the United States and Singapore. Other G20 economies in the top 10 are Germany (5), the United Kingdom (8) and Japan (9). China is the highest ranking among the BRICS group of large emerging markets, moving up one rank to 27.
Drawing on data going back 10 years, the report highlights in particular three areas of greatest concern. These include the financial system, where levels of “soundness” have yet to recover from the shock of 2007 and in some parts of the world are declining further. This is especially of concern given the important role the financial system will need to play in facilitating investment in innovation related to the Fourth Industrial Revolution.
Another key finding is that competitiveness is enhanced, not weakened, by combining degrees of flexibility within the labour force with adequate protection of workers’ rights. With vast numbers of jobs set to be disrupted as a result of automation and robotization, creating conditions that can withstand economic shock and support workers through transition periods will be vital.
The Global Competitiveness Report 2017-2018: WEF
FOREIGN DIRECT INVESTMENTS AND M&A REVIEW