NEWS & ANALYSIS
INDUSTRY NEWS
Givaudan to acquire FIS, flavor unit of Nestlé
Givaudan SA, Vernier, Switzerland, signed an agreement with Nestlé SA, Vevey, Switzerland, to acquire its flavor activities, operating under the umbrella of Food Ingredients Specialities (FIS).
The acquisition combines Givaudan’s strength in sweet and concentrated flavors with FIS’s expertise in savory flavors and base notes. With this combination, Givaudan will be able to provide state-of-the-art flavor solutions and innovative savory concepts to its customers in all product segments.
Jürg Witmer, CEO of Givaudan, said the acquisition will allow the company to strengthen its position in the savory flavors industry. “It will also allow us to strengthen our role as core flavor supplier to Nestlé,” he said. “Additionally, we improve our knowledge in culinary applications and win access to new products such as vegetable, wine, and coffee flavors.”
The acquisition is subject to regulatory approval in several countries and is valued at CHF 750 million.
Headquartered in Châtel-St-Denis, Switzerland, FIS manufactures and sells flavor compounds for the food and beverage industry. Headquartered in Geneva, Switzerland, Givaudan is an international fragrances and flavor company.
EU approves Cargill acquisition of Cerestar
The European Commission gave clearance in January to Cargill’s acquistion of Montedison’s 56% stake in Cerestar.
The decision gives final clearance regarding operations and sales in Continental Europe, but provides for an investigation by authorities in the United Kingdom into what possible impact the acquisition might have on the supply of glucose syrups and blends in the UK.
If a positive decision on the acquisition is reached by the U.S. Dept. of Justice, Cargill will purchase Montedison’s shares and file a public tender offer for the remaining 44% interest in Cerestar at 33 euro per share when a ruling on the transaction is reached by the U.S. Dept. of Justice. The company hopes to complete the deal by spring 2002.
Cargill, based in Minneapolis, Minn., is an international marketer, processor, and distributor of agricultural, food, financial, and industrial products and services. Cerestar, based in Paris, France, is a global manufacturer of starches and starch derivitives.
La Moderna to purchase three Kraft flour businesses
Kraft Foods Inc. agreed to sell three rice and wheat flour brands to Mexico’s Grupo La Moderna in January.
La Moderna is a Mexico-based wheat miller and pasta maker. The three brands, Tres Estrellas, San Antonio, and Sorpresa, had estimated total sales of $10 million last year. The deal includes the three brands and the equipment to produce them.
In December, Kraft sold its Mexican pasta business to international pasta company Barilla Alimentari.
Nestlé and Ocean Spray form strategic alliance
Nestlé USA’s Beverage Division and Ocean Spray Cranberries, Inc. formed a long-term strategic operations alliance in January.
The alliance will help both companies increase manufacturing and supply-chain efficiency, while maintaining high-quality products for their respective juice businesses. Nestlé will transfer its manufacturing of Libby’s Juicy Juice and Libby’s Kerns Nectars to Ocean Spray facilities. The companies will also seek collaborative procurement of common raw and packaging materials and operating supplies, as well as shared logistics to increase process efficiency across the supply chain.
The operation will be governed by a leadership team and an executive operating committee, both comprised of members from each company.
Nestlé USA, based in Glendale, Calif., manufactures food and beverage products. Ocean Spray, based in Lakeville-Middleboro, Mass., is a grower-owned farming cooperative that produces canned and bottled juice drinks.
HACCP Alliance to hold first conference
The International HACCP Alliance will hold its first Global HACCP Conference May 15–17, 2002, in Chicago, Ill.
The conference will focus on various aspects related to the HACCP process, including perspectives, issues, and answers on implementing HACCP. The International HACCP Alliance was established in1994 to provide a uniform program to assure safer meat and poultry products. It is based in the Dept. of Animal Science at Texas A&M University.
For more information on the conference, call 979-862-3643, fax 979-862-3075, or http://haccpalliance.org.
PEOPLE NEWS
Archer Daniels Midland Co. announced a number of senior management changes. Paul B. Mulhollem, President, was elected to the additional office of Chief Operating Officer. He will have executive responsibility for and direct the activities of the company’s global business units. Lewis W. Batchelder was elected Senior Vice President. He will be responsible for the company’s global grain business and extensive transportation network. He was most recently Group Vice President. William H. Camp was elected Senior Vice President. He will be responsible for the company’s global oilseeds and cocoa operations. He most recently headed up the company’s North American Oilseed Processing Division. David J. Smith was elected Senior Vice President, Secretary, and General Counsel. He will continue to have direct responsibility for the global legal affairs of the company. Douglas J. Schmalz was elected Senior Vice President and Chief Financial Officer. Steven R. Mills has been elected Group Vice President and Controller. ADM is based in Decatur, Ill.
Cargill named Gilbert A. Leveille, former Vice President at McNeil Nutritionals and Nabisco, Inc., Vice President of Technology for Cargill Food System Design business. He is responsible for overseeing the development of food and nutrition applications for Cargill’s specialty food businesses. The company also named Paul Hillen Vice President of Marketing for Cargill Food System Design. He was previously Marketing Director for Procter & Gamble’s Juice Products division. In his new position, he will be responsible for integrating and overseeing the go-to-market strategy for the company’s Food System Design businesses. Cargill, based in Minneapolis, Minn., is an international marketer, processor, and distributor of agricultural, food, financial, and industrial products and services.
D.D. Williamson appointed Kenneth L. Hartung Vice President, Sales and Marketing, a newly created position. He was previously Vice President, Equipment Group and Member Services at Unified Foodservice Purchasing Co-op, LLC. Based in Louisville, Ky., D.D. Williamson manufactures caramel color.
The Mexican Academy of Sciences elected IFT Professional Member Octavio Paredes-López Vice President 2002-04, and President 2004-06. The academy is a prominent Mexican scientific and technological organization that acts as a scientific advisor to the President of Mexico and the National Council of Science and Technology. Paredes-López was also recently appointed Editor-in-Chief of the international journal Plant Foods for Human Nutrition.
Midwest Grain Products, Inc. appointed Bob Mikula and Jack Walker special ingredient Sales and Marketing Managers. Mikula, who was previously with Cerestar, will cover the Eastern region of the U.S. Walker, who was previously President at Dock High Ingredients, Inc., will serve the Midwest. Based in Atchison, Kan., Midwest Grain Products produces and markets value-added proteins and starches derived from wheat.
Roche Vitamins Inc. appointed Robert C. Bailey Marketing Manager. He will be responsible for promoting Roche’s product portfolio to the food industry. He was previously with Nabisco. Based in Parsippany, N.J., Roche produces nutritional ingredients for foods and beverages.
The International Consultative Group on Food Irradiation (ICGFI) named IFT members Christine M. Bruhn of the University of California, Davis, and Irwin A. Taub of the U.S. Army Natick Soldier Center joint recipients of its R.E. Engle Award. The award recognizes outstanding contributions and achievements in food irradiation. ICGFI was established under the aegis of FAO, IAEA, and WHO in 1984.
Kraft Foods Inc. named Frank Meegan Senior Vice President, Operations for Kraft Foods North America and Alene M. Korby Senior Vice President, Procurement and Integrated Supply Chain. Meegan succeeds Larry J. Gundrum, Senior Vice President, Operations for Kraft Foods North America, who has announced his decision to retire from the company after 35 years. Kraft is based in Northfield, Ill.
by SARA LANGEN
Assistant Editor