Energy drinks and acquisition opportunities – ADM’s 2025 beverage focus

Buyouts aren’t off the table for ADM as it “carefully observes market trends” and, like every “big company, screens the market to extend its portfolio”, says ADM VP for global segment marketing Jochen Heininger. The business made two notable acquisitions, in 2023 and last year, to allow it to better cater for rising trends. This included flavour and functional ingredients business FDL for $120m and hop flavour specialist TNS last year. ADM’s acquisition shopping list is strictly under wraps, says Heininger, but the business’s current focus areas could indicate where budget and time might be invested. Drinks with a function have dominated trends lists in recent months as consumers seek additional benefits from the products they buy. ADM sees a shift from the current segmented approach within functional beverages, says Heininger. “Energy drinks is a brilliant example and maybe the biggest growth category. In the past, it was all about consuming an energy drink. Today consumers are looking for specific energy drink formulations to help support needs in specific occasions.” There’s been a large shift in companies’ approach towards this category, he believes, particularly within flavours and flavour profiles. Heininger cites watermelon, mango and candyfloss as emerging profiles in the category. He also mentions capabilities to imbue energy drinks with “cooling” qualities. “There’s also the blurring of lines towards a carbonated soft drink or a sports drink,“ he explains. “It’s really a shift towards different consumption occasions to lifestyles and a hint of personalisation.” Function, however, won’t erode the sales of classic categories, such as colas or citrus flavoured carbonates, he believes. And within that, there is opportunity for these categories to add functional value for consumers. “In the US and also the UK, when you look at the carbonated soft drinks markets in those areas, there are carbonates with prebiotics supporting digestive health and general health. With this, it opens the classic carbonate category to new consumption occasions.” Other ingredients trends to watch within the energy and sports market include electrolytes, vitamins, coconut water, mineral enhancements or other additions to provide function, he predicts. Alcohol-free beers and other alcohol alternatives including spirits will likely level up in terms of flavour and experience in the coming months, Heininger believes. This is driven, in part, by Gen Z who aren’t as interested in alcohol as other generations, but still want the experience of the drinking culture. “What you need to make alcohol-free successful is a great flavour experience and you know alcohol brings body to product and it’s really key to the formulation,” Heininger adds. Citrus is “number one” in alcohol-free as a flavour, he says, adding flavours like lime, lemon and mandarin are attracting consumer purchase within the category. Allyson Fish, president and chief commercial officer for precision fermentation at ADM will be joining a panel on Bridging the Supply Gap: Designing Sustainable Ingredients and Proteins at Future Food-Tech in Chicago on June 3, 2025. Join her and 400 industry leaders – global founders, investors, CPGs and food brands – on June 2-3 to identify breakthrough opportunities to bridge supply chain gaps, commercialize alternative ingredients and advance protein diversification.