ADM returns to P&F+’s Leaders & Newsmakers issue to discuss the company’s innovation across food security, health and wellness and sustainability.
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ADM returns to P&F+’s Leaders & Newsmakers issue to discuss the company’s innovation across food security, health and wellness and sustainability.
ADM has set its focus on reinforcing those pillars by expanding the company’s specialty proteins ingredient library and technical capabilities. Recent acquisitions of Flavor Infusion International, S.A. (FISA) and Comhan, as well as investments in flavor production technology in Pinghu, China and Berlin, Germany support these focal points.
With fortified sustainability efforts, ADM also set new targets with the company’s Strive 35 goals. This aims to reduce absolute Scope 1 and 2 greenhouse gas emissions by 25%, energy intensity by 15%, water intensity by 10% and achieve a 90% landfill diversion rate by 2035.
Regarding sales, ADM reported strong growth despite continued supply chain turbulence. By the end of 2021, revenue growth was reported at 15% and operating profit growth at 20%, with the flavor business an annual sales growth of more than 15%.
P&F+ heard from several voices of the ADM team to take a closer look at the company’s recent triumphs and future goals.
Vince Macciocchi
Senior Vice President, President of Nutrition and Chief Sales and Marketing Officer, ADM
Responsible Innovation to Feed a Growing Population
Vince Macciocchi: Our teams are united in the common goal to feed the world by unlocking the power of nature through intentional and responsible innovation. As such, we have been strategically growing each of our business sectors to help our customers meet the evolving needs of consumers around the globe. From oilseeds and carbohydrate solutions to AG services, nutrition and more, we have seen exceptional pipeline growth, project management and win rates.
Our cross-functional teams’ passion and drive to enrich quality of life across the globe through delicious and nutritious offerings is an essential piece to the puzzle. By the end of 2021, we achieved 15% revenue growth and 20% operating profit growth. Our flavor business has also been an important component, garnering an annual sales growth of more than 15%. Much of this success can be attributed to our level of differentiation and ability to build full application systems through the breadth and depth of our pantry, coupled with our technical capabilities and global footprint. Ultimately, our differentiated approach and market advancements deliver an unmatched level of expertise, intimacy and optionality to our customers for a continued edge in the marketplace.
By setting our focus on three key pillars—food security, health and wellness and sustainability—we’re creating space for responsible innovation. Food security, in particular, dovetails right into this type of innovation. Our ever-expanding specialty proteins ingredient library and technical capabilities are critical to addressing this worldwide concern. Data from the United Nationsb shows the global population is expected to reach 8.5 billion by 2030, which is up from 7.8 billion in 2020. Our recent advancements and continued exploration in next-gen protein solutions from sources like fermentation, cell-based and even elements of the air, as well as increased use of different plant protein sources like chickpea and sunflower, are important pieces to help address food security, sustainably.
Moreover, our intensified focus on biotics and support of the gut microbiome has seen accelerated growth in both the human and animal/pet nutrition sectors. We view health and wellness as a convergence of human and animal nutrition, and our efforts to bring forth new capabilities to meet holistic health and wellness needs across these markets is a key area of our success. Over the past few years, we have multiplied our abilities in this space many times over through strategic acquisitions, such as Biopolis, Protexin and most recently Deerland Probiotics & Enzymes, while also expanding capacity in our Valencia, Spain, Microbiome Research Center. This only serves to enhance our leading position in microbiome-supporting solutions, including prebiotics, probiotics and postbiotics. We believe in systems and solutions backed by science, and through new partnerships, acquisitions and research centers, we’re accelerating our capabilities for continued innovation and development.
For each of these pillars, we rely on our strength in building full systems, which leverage transparent global raw material sourcing, the full breadth of our high-quality ingredient portfolio and our foundational expertise in the formulation of finished products. From start to finish, our ability to go from concept to market quickly and effectively is propelling our business, our customers’ businesses and the industry forward.
ainvestors.adm.com/news/news-details/2022/ADM-Reports-Outstanding-Results-Fourth-Quarter-Earnings-per-Share-of-1.38-1.50-on-an-Adjusted-Basis-Full-Year-2021-EPS-of-4.79-5.19-on-an-Adjusted-Basis/default.aspx
bwww.un.org/en/global-issues/population
For the full article, please check out the Perfumer & Flavorist+ July 2022 issue.
