Marfrig and Archer Daniels Midland (ADM) announced May 27 an agreement to create PlantPlus Foods, a joint venture for the sale of plant-based food products across South American and North American markets.
Marfrig, one of the world’s leading beef producers and largest beef patty producer, and ADM, a leading global nutrition company, already have a successful history working together to develop and produce sustainable, plant-based foods in South America, and now, PlantPlus Foods will expand on that successful relationship, according to the announcement.
“Marfrig’s production and distribution capacity and its experience and know-how in working with high-quality meat, combined with ADM’s technical and development excellence and its industry-leading plant-based ingredient and natural flavors portfolio, will provide our new joint venture unparalleled scale and singular expertise for offering plant-based products of the highest quality,” Marfrig founder and chairman Marcos Molina said. “PlantPlus Foods will be ready from day one to meet customer needs in this fast-growing market.”
ADM chairman and chief executive officer Juan Luciano said, “ADM’s complete portfolio of ingredients, flavors and solutions from nature are a foundation for innovative, sustainable foods – including alternative proteins – around the world. Over the last several years, we’ve invested strategically to build strong leadership positions in fast-growing trend areas. Now, by expanding our relationship with Marfrig, we’re taking the next step in meeting exploding consumer demand for alternative proteins.”
Leticia Gonçalves, ADM president of Global Specialty Ingredients, explained that consumers today are thinking about food in new ways, “with the knowledge that delicious burgers and more can come from a variety of sources, including plants.”
She added, “We’re proud to supply major consumer product customers around the globe, including through our ADM Nutrition Solutions platform in Brazil, with a complete pantry of ingredients, flavors and solutions to meet their individual needs, and now, PlantPlus Foods will add to our capabilities, expanding our leadership position in a key growth market.”
Marfrig will initially own 70% of PlantPlus Foods, and ADM will own 30%. Marfrig will be responsible for production and distribution, utilizing its facilities in South America, mainly in Várzea Grande in the state of Mato Grosso, Brazil, and its facilities in the U.S. ADM will supply its technical expertise, application development and an array of plant-based ingredients, flavors and systems from its specialty protein complex in Campo Grande, Mato Grosso do Sul, and its network of U.S.-based ingredient and flavor facilities, including its new pea protein plant in Enderlin, N.D. The joint venture will focus primarily on North and South America, although it will have the ability to serve customers in other global markets.
The two companies will continue serving existing customers independently to support the sustainable development of the industry.
“Marfrig and ADM value and appreciate all of our customers, and this new company will not change our relationships or our commitment to meeting their needs,” Gonçalves said.
Molina noted that the demand for protein from both plants and animals is growing across the globe, and Marfrig and ADM will continue individually to help meet those needs.
Marfrig and ADM said they plan to launch the new company and start operations as soon as required regulatory approvals have been received.