Cargill agrees sale of juice blends and compounds business to Wild Flavors

17-Apr-2012 - Last updated on 18-Apr-2012 at 15:31 GMT

Cargill has signed an agreement that will see Wild Flavors acquire its global juice cold blends and compounds business for an undisclosed amount, subject to anti-trust approvals.

German-based Wild Flavors said the acquisition would provide it with over $200m (€153m) in further annual sales and port access in its strategic growth areas: Asia, Europe and the US.

Any deal is subject to anti-trust approval, and although neither firm was able to put a timeline on its completion, BeverageDaily.com understands that it could be finalised within two to three months.

The Cargill business provides Wild Flavors with a global network that allows it to produce and store bespoke juice blends and compounds for high-fruit content beverages and juice concentrates.

Sat alongside flavor systems

The juice business was an add-on part of Cargill Flavor Systems, but BeverageDaily.com understands that the $230m disposal of this business to Irish firm Kerry Group, completed on December 1 (where the latter did not want the juice business), meant that a further sale made sense for US giant Cargill.

Asked what expertise or capabilities the acquisition would provide, a Wild Flavors spokesman told BeverageDaily.com: “We are active in the cold blends field already, but this strengthens our exposure to that area and our core business, but also provides us with greater scale, a stronger supply chain.

Production and storage facilities are located in Holland (Amsterdam), the US (Port Elizabeth) and Japan (Chiba and Kashima), and Wild said the locations would support its global growth strategy.

The spokesman added: “We now have port access in Holland, Japan and the US – ocean access tank farms that strengthen our supply chain, which we can then use to service customers.”

Single-source ingredient supply

Paul Naar, who heads up Cargill’s European food ingredients businesses, said: “Cargill is selling 35 years of experience in the global juice-based beverage industry, where it built a strong position in local sourcing, supply chain management, application know-how and reliable, food safe production.”

Michael Ponder, Wild Flavors CEO, said that the acquisition would allow his firm to grow a “differentiated and integrated” supply chain and provide it with better raw material excess.

“By broadening our product offering and by providing a truly global supply chain, our customers will profit from Wild Flavor’s unique approach as the single source of supply for every ingredient needed to produce a high-quality finished beverage product,” Ponder said.