News

15 AUGUST 2018

DMK to offer food products with reduced sugar levels

German dairy company DMK Group (DMK) is planning to reduce sugar levels across its Milram range of products in response to consumer demand.

The company has introduced new food and drinks products containing less sugar under its flagship brand Milram as part of the initiative.

These include Milram Buttermilch Drink Grapefruit-Aronia (buttermilk with grapefruit and aronia) and Milram Buttermilch Drink Johannisbeere-Granatapfel (buttermilk with currant and pomegranate), as well as Milram Feine Quarkcreme (fine quark cream) in raspberry, tangerine and mango flavours.

The company also stated that its Milram Skyr Drinks are intended provide ‘a lot of protein and little fat’, in addition to their comparatively low sugar content, in order to tap into growing customer demand.

DMK Group COO business unit brand Matthias Rensch said: “At DMK, we develop new concepts and products that meet consumers’ needs and help them lead a balanced life.

“As a leading food manufacturer, we focus on customer-oriented approach in order to offer dairy products that consumers are looking for on the refrigerated shelves.”

15 AUGUST 2018

Aryzta plans to raise €800m to ease debts

Swiss-Irish listed food company Aryzta plans to raise €800m from its shareholders in order to reduce its debts and strengthen its overall capital base.

The decision to raise new capital through its stakeholders was taken following a review of the company’s current development strategy and capital infrastructure.

Aryzta CEO Kevin Toland said: “A significantly improved capital structure will provide Aryzta with the means to continue to take the necessary steps to re-position the business and deliver on our strategy.

“Over the medium-term, we expect to generate significant cash flow, which will be applied towards continued net debt reduction and to resource selective growth opportunities.”

Aryzta is said to have conducted the detailed review with assistance from BofA Merrill Lynch, UBS and Rothschild & Co.

14 AUGUST 2018

Freedom Foods to acquire Crankt Protein brand

Australia’s Freedom Foods Group (Freedom Foods) has reached an agreement to acquire nutrition products company Crankt Protein.

Crankt Protein is an Australian brand that markets a range of mainstream nutrition products such as beverages and snack bars, which are sold throughout the petrol and convenience, fitness retailers and retail grocery sectors across Australia and New Zealand.

Freedom Foods originally signed a distribution agreement with Crankt Protein in February, which will be effective for a minimum period of three years.

The deal also included the option to acquire the brand subject to sales performance. Freedom Foods has now elected to acquire Crankt Protein under the initial agreement for a consideration of A$3.5m ($2.5m).

However, after deductions for working capital loans and other offsets, the net cash consideration payable under the deal was A$2.3m ($1.6m).

14 AUGUST 2018

Blackstone agrees sale of Tangerine to Valeo Foods for $127m

Private equity firm Blackstone has reportedly signed an agreement to sell Tangerine to Irish food company Valeo Foods under a deal valued at £100m ($127m).

Tangerine’s Dip Dab, Fruit Salad and Blackjack brands will be added to Valeo’s Big Bear Confectionery portfolio following the completion of the acquisition.

Big Bear Confectionery was previously acquired by Valeo from Raisio last year and already owns a number of food brands across Europe.

The latest deal is expected to allow Valeo to increase its position within the UK’s confectionery market.

Valeo is partly owned by Capvest, another private equity firm.

The acquisition will add Tangerine’s five UK confectionery production sites in Liverpool, York, Blackpool, Pontefract and Cleckheaton to Valeo’s production network.

Valeo currently has operations in 90 markets worldwide.

The Blackstone Group initially announced it had assumed ownership of UK-based, independent manufacturer of sugar confectionery and popcorn Tangerine in July 2011.

13 AUGUST 2018

Cargill opens new aquaculture innovation centre in Indonesia

Global food company Cargill has opened a new aquaculture innovation centre in Indonesia to work with freshwater fish farmers to enhance farming and feeding standards in the region.

The facility is located at Ciseeng, Parung-Bogor, which is considered a hub for the freshwater aquaculture in the country.

Cargill’s new technology application centre (TAC) is the latest addition to its 12-centre network worldwide. The company intends to teach best practices in global aquaculture and expertise to fish farmers in Indonesia, helping them improve their productivity and income.

The TAC will also provide a new platform for Indonesian fish farmers, where they can attend training and hold discussions around feeding and other farm management practices.

Cargill South Asia aqua nutrition managing director Chad Gauger said: “Freshwater aquaculture in Indonesia is showing strong growth thanks to increasing demand for seafood in the country.

13 AUGUST 2018

Tyson Foods to sell pizza crust business to Peak Rock Capital

US-based meat producer Tyson Foods has reached an agreement with an affiliate of private equity firm Peak Rock Capital to sell pizza crust business TNT Crust.

Established in 1981, TNT Crust produces partially baked and self-rising pizza crusts for frozen pizza manufacturers and foodservice customers.

Tyson Foods and Peak Rock Capital expect to complete the deal by September this year.

Tyson Foods’ prepared foods group president Sally Grimes said: “TNT Crust is a solid pizza crust business supported by a great team, however, our strategy is focused on expanding Tyson Foods’ leadership position in protein.”

TNT Crust currently employs more than 400 people at two manufacturing facilities in Green Bay, Wisconsin. Its employees are expected to continue with the company under the new owner.

Grimes continued: “We’re pleased Peak Rock Capital plans to continue operating the business and provide continued opportunities for the workforce. We intend to work closely with them to ensure a smooth ownership transition for everyone, including our team members and customers.”

10 AUGUST 2018

Danish Crown to expand Blans abattoir in Denmark

Danish Crown is planning to expand its abattoir in Blans near Sønderborg in Denmark by installing a new production line.

The new production line will be dedicated to meeting demand from consumers and restaurants in Japan and also will create 100 new employment opportunities.

Danish Crown Pork CEO Søren F Eriksen said: “It’s great to be in a situation where we’re taking on new people, especially when we here are talking about permanent jobs, which are not affected by fluctuations in the supply of pigs.

“Our Japanese customers are crazy about a specific product based on minced pork, which we have sold to them for a few years.

“This means that we now need to hire more people to both de-bone fore-ends and run the actual production.”

10 AUGUST 2018

Frutarom shareholders approve merger with IFF

US-based International Flavors & Fragrances (IFF) has revealed that the shareholders of Israeli firm Frutarom have approved the proposed merger of the two companies.

IFF noted that 94.6% of Frutarom stakeholders have voiced approval for the planned merger.

IFF agreed to acquire Frutarom in May through a cash and stock transaction valued at nearly $7.1bn, which also included the assumption of Frutarom’s net debt.

IFF chairman and CEO Andreas Fibig said: “We are pleased that Frutarom shareholders have approved the combination with IFF, marking another milestone on our path to unlock the value creation potential of the combined company.

“Together, IFF and Frutarom will become a global leader in taste, scent and nutrition, with a broader customer base, more diversified product offerings and increased market penetration.

“Through our integration planning work, we continue to be confident in the opportunities that lie ahead and the ability of the combination to accelerate profitable growth, enhance free cash flow and generate greater returns for IFF shareholders.”