Additionally, at the end of last month, Brenntag completed the acquisition of pigments and additives specialist Wellstar Group from Hongkong, which operates three subsidiaries in Mainland China located in Shenzhen, Guangzhou and Shanghai. It acquired the remaining 49 % of shares of the joint venture. “Strengthening our Specialties division, particularly in China, as well as in the Asia Pacific region in general, is a central pillar of our company’s mergers and acquisitions strategy,” says Henri Nejade, management board member of Brenntag and COO of Brenntag Specialties.
Orkla Food Ingredients, a business unit of Norwegian Orkla Group, has entered into an agreement to purchase the Swiss company Hans Kaspar, thereby strengthening its position in confectionery and ice cream ingredients.
Hans Kaspar was established in 1925 and currently has 31 employees. The company’s turnover totalled CHF 13.3 m in 2020. It is a leading specialist in the manufacture of specialty ingredients for chocolate and ice cream producers. The company’s headquarters and production facilities are located outside Zurich, Switzerland. More than half of the company’s revenues are from international sales. The business will be integrated into the Orkla Food Ingredients business area and become part of OV Group (formerly Orchard Valley Foods), joining companies like Candeco, Confection by Design and Cake Décor.
“Hans Kaspar offers high-quality, specialty ingredients based on natural raw materials, adapted to modern consumer trends. As a well-established company, with a long history, Hans Kaspar has customer relationships with several of Europe’s leading chocolate and ice cream manufacturers. The company has a strong position in a segment that Orkla knows well through our ingredients business,” says Orkla President and CEO Jaan Ivar Semlitsch.
“Sojaprotein has a wide range of diverse products that few soybean processors can boast, and its special comparative advantage is the processing of genetically unmodified soybeans,” says Leticia Gonçalves, ADM’s president of global foods. “Alternative proteins represent one of our core growth platforms. And as this USD 10 billion global industry grows to USD 30 billion over the next decade, we are investing to expand our capabilities.”
KDV USA, a part of Russian KDV Group, has acquired the company Liberty Orchards, based in Cashmere, WA. The company, founded in 1920 by Armenian immigrants Mark Balaban and Armen Tertsagian, is famous for its brand Aplets & Cotlets, a strongly flavoured variation on a fruit candy known as “Turkish Delight”.
In January 2020, company President Greg Taylor, Tertsagian’s grandson who had been on the job for 43 years, announced the company was looking for a buyer. KDV Group owns 15 factories in Russia and produces 700 different products. In total, KDV produces around 60 tonnes of confectionery and snacks every day. Denis Shtengelov, CEO of KDV Group, which was founded in 1994 and is headquartered in Tomsk, Siberia, is pleased to continue manufacturing the branded products, which are so popular in the USA, in Cashmere/WA. “This is the first time in the history of the Russian confectionery industry that a Russian company has bought an American one,” writes Forbes.
According to the press release, Lindt & Sprüngli benefited from an above-average development of the premium segment in which the company holds a global leading position in. The business segment of the own shop network Global Retail recovered with double-digit growth compared to a very weak previous year. However, due to the ongoing temporary local lockdowns and thus lower consumer frequency, sales were lower compared to 2019. The Duty Free business was still unable to match the results of the pre-pandemic years due to the ongoing restrictions in global air travel.
Lindt & Sprüngli was able to meet the increased global demand for high-quality chocolate products with the key franchises Lindor and Excellence. Both product lines were again main sales drivers in the first half of the year and recorded solid growth. It is also particularly pleasing that the important Easter business, recovered significantly and even exceeded expectations. In addition, the online business doubled its sales.
The company gained market shares in all strategically important markets and recorded double-digit sales growth in all three regions Europe, North America, and Rest of World. Despite the persisting numerous constraints and their effect on the economy, the sales contributions of the important chocolate markets Germany, France, UK, and Italy are particularly noteworthy. Furthermore, Lindt & Sprüngli Italy was able to acquire and integrate the long-standing partner for Lindt retail shops at the beginning of the year. In the Swiss home market, the strong presence of the Lindt brand was expanded in the spring through a new retail partnership with Migros, one of the country’s largest retailers.
During this period, Lindt & Sprüngli has succeeded in securing supplies to production sites as well as to trade partners at all times. Thanks to a forward-looking purchasing strategy, costs for cocoa products were kept stable despite continued high price volatility in the first half of the year. In contrast, prices for the raw materials sugar and milk powder as well as for packaging materials recorded demand-related price increases. To ensure sales growth, Lindt & Sprüngli continued to maintain a high level of investments in all production sites also in the first half of 2021. Worth mentioning is the decision to further expand the cocoa liquor plant in Olten, Switzerland, to ensure the long-term supply of cocoa liquor to the European plants. Further major investments were made for capacity expansion at the production sites in Germany and at the US site in Stratham for pralines production lines.
The company’s sales for the first six months of the year were reported at CHF 3.4 bn, an increase of 7.9 % on a like-for-like basis and 4.7 % in CHF. The Taste & Wellbeing segment reported sales of CHF 1.8 bn, an increase of 6.1 % on a like-for-like basis and 2.5 % in CHF.
Givaudan’s gross profit increased by 8.9 % from CHF 1.4 bn in 2020 to CHF 1.5 bn in 2021. Due to high operating leverage related to the strong sales volume growth and cost discipline, the gross margin increased to 43.9 % in 2021 compared to 42.2 % in 2020.
“I am really pleased with our strong performance in the first half of 2021, with all parts of our business contributing to the excellent financial results and a strong contribution from our 2025 strategic growth areas,” says CEO Gilles Andrier. Among its targets for 2025, Givaudan is aiming to achieve organic sales growth of 4 to 5 % on a like-for-like basis and free cash flow of at least 12 %, both measured as an average over the five-year period strategy cycle.
In addition, the Swiss chocolate giant is moving toward 100 % sustainably sourced cacao within this product range. These developments along both supply chains are hailed as important steps toward the company’s 2025 “Forever Chocolate” sustainability goals.
Barry Callebaut’s “Better For You” portfolio includes – but is not limited to – sugar solutions (sugar-free, reduced sugar and no sugar added), high-protein, dairy-free and organic solutions. The portfolio has seen high growth and innovation in recent years, the supplier highlights. Barry Callebaut and Prova will fund and support local communities through social, health and education programs.
The award was made as part of the “Germany’s Best – Sustainability” study conducted by the IMWF (Institute for Management and Economic Research) on behalf of Focus Money and Deutschland Test. The study looked at around 24,000 companies and brands in the period from March 2020 to February 2021. The criteria of the award, which gives equal weight to the areas of ecology, economy and social issues, prove that sustainability goes far beyond environmental protection.
Stevia extract is one of several options that Tereos has been offering to meet customers’ sweetening needs. The company’s product portfolio includes sweetness options, bulking agents, fibres and proteins, which add up to a complete set of solutions supported by proven reformulation expertise. By combining Tereos’ solutions with Firmenich’s range of stevia extracts and building on high expertise in taste, this agreement further accelerates Tereos’ innovation in sugar reduction.