Chocolate Ingredients / News

ADM to pursue sale of chocolate business only

Company plans to keep the majority of its cocoa press operations.

chocolate truffles

Archer Daniels Midland Co. (ADM) says it will pursue the sale of its chocolate business, while retaining the majority of its cocoa press operations.

ADM also said it had recently had extensive negotiations with a potential buyer about the sale of the company’s global cocoa and chocolate business, but in the end, they couldn’t agree on terms.

While they didn’t name any names, sources familiar with the discussions told Reuters last year that Cargill Inc had been in final-stage talks with ADM to buy ADM's cocoa and chocolate businesses.

Patricia Woertz, the company’s chairman and ceo, explained that ADM has worked to improve its cocoa business over the last year, most notably by significantly reducing invested capital.

“At the same time, we have also seen industry conditions improve as crop supplies have returned to normal,” she says. “Given improved underlying conditions and the success of our efforts to reduce capital intensity, we see a promising outlook for the cocoa press business and believe it will meet our returns objectives."

The company has engaged advisers to facilitate the sale process.

“ADM is moving ahead with a process to sell our global chocolate business while retaining most of our cocoa press operations,” Woertz says. “This approach will position ADM to realize the greatest overall value from these businesses.”

ADM has chocolate manufacturing operations in Hazleton, Pa.; Milwaukee, Wis.; Georgetown, Ontario; Liverpool, U.K.; Manage, Belgium; and Mannheim, Germany.

The news was announced Tuesday, along with two other items: ADM is signing a definitive agreement to sell its South American fertilizer business to Mosaic and will acquire the remaining stake of Toepfer, a global grains business .

“We are committed to ongoing portfolio management to realize value from our businesses and to deploy our capital where it can best improve returns,” Woertz says. “The actions we are announcing today are results of this continuing process. Each of these transactions will help ADM continue to improve returns and create shareholder value.”

Did you enjoy this article? Click here to subscribe to Candy Industry

Recent Articles by Crystal Lindell

You must login or register in order to post a comment.



Image Galleries

A Venetian Carnival, a Jelly Belly sculpture and gourmet chocolates! Oh my!

Candy Industry takes you into the French Pastry’s School For the Love of Chocolate event in Chicago, held Feb. 25.

Candy Industry Magazine

Candy August 2014 Cover

August 2014

August with Candy Industry features Kettle Award winners, jelly beans, and more!
Table Of Contents Subscribe

Confectionary Sales

Are you noticing an increase in confectionery sales that would led you to believe the economy is finally coming back?
View Results Poll Archive

Candy Industry Store

M:\General Shared\__AEC Store Katie Z\AEC Store\Images\Candy Industry\natural-food-flavors-colora.gif
Natural Food Flavors and Colorants

Although many foods are appealing, and even perceived as natural, in spite of containing synthetic additives, consumer increasingly prefer food products which are fully natural.

More Products

Candy Industry's Kettle Awards

Kettle Awards

Since 1946, Candy Industry magazine has recognized leaders in the U.S. confectionery industry with the highest recognition possible, the Kettle Award. The distinguished recipients have captured this most coveted award by not only excelling within their companies, but by contributing to the greater good of the industry. It’s virtually a who’s who of past and present professionals who have left their mark as confectioners and business mavens. Learn more about the voting process as well as the annual Kettle Awards Ceremony by visiting our Kettle Awards Website

Clear Seas Research

Clear SeasWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.


fb40   twitter 40    youtube40    linked   Google+