ADM chocolate business sold to Cargill

AMBROSIA, Merckens and Schokinag are brands that Archer Daniels Midland Company (ADM) is known for in the chocolate industry. But as it agrees to sell its chocolate business to Cargill, these brands will be part of the deal. Cargill said it would purchase the ADM chocolate business for $440 million.

“This acquisition is a major milestone in Cargill’s chocolate growth strategy and will help us better serve our customers in North America and Europe,” said Bryan Wurscher, president, Cargill Cocoa and Chocolate North America. “It will bring together great people with a deep passion and commitment to producing excellent chocolate. Our customers will benefit from a broader product portfolio, greater access to innovation and product development support.”

Besides the brands, Cargill will assume operations of three ADM plants in North America – Milwaukee, Wisconsin, and Hazleton, Pennsylvania in the US, and Georgetown in Ontario, Canada. In Europe, it will take over ADM facilities in Liverpool (U.K.), Manage (Belgium) and Mannheim (Germany).  The acquisition of these operations will complement the company’s existing facilities in Asia, the Middle East, Brazil, and those in the US and Europe, as well as broaden its product ranges and capabilities. Cargill will likewise be able to share its knowledge of texturisers, oils, fats and sweeteners, to customers.

“Cocoa and chocolate products have been key contributors to Cargill's business since 1979,” said Jos de Loor, president Cargill Cocoa & Chocolate EMEA and Asia. “We continue to invest strongly in the development of our own facilities and people, and we welcome the opportunity to embrace these new operations and further build on our success together.”

ADM chairman and CEO Patricia A. Woertz, said, “As part of our ongoing portfolio management, we considered several options to strengthen the returns of this part of our business. The sale of the chocolate business helps improve ADM’s returns and will allow us to redeploy capital for higher-return investments.”

After the sale in 2015, ADM will end its cocoa processing operations at Hazleton, Pennsylvania. But it will continue to offer its customers of deZaan? cocoa ingredients from the company’s cocoa operations in Mississauga, Ontario; Koog aan de Zaan and Wormer, Netherlands; Mannheim, Germany; Ilhéus, Brazil; Abidjan, C?te d'Ivoire; Kumasi, Ghana; and Singapore. Cocoa processing involves roasting and shelling cocoa beans, pressing nut into cocoa butter and powder and milling these for the oil and cocoa liquor.