Archer Daniels' Yerbalatina Buyout To Boost Natural Products
Zacks Investment Research | Jan 07, 2020 09:00PM ET
Archer Daniels Midland Company (NYSE:ADM) recently bought Yerbalatina Phytoactives, a Brazilian-based pioneering natural plant-based extracts maker. With this buyout, the company will be able to enhance its presence in Brazil, where it has an extensive human and animal nutrition business. Through this buyout, Archer Daniels will be able to serve customers with healthy and natural-source products in the foods and beverages space.
Notably, Yerbalatina uses proprietary cool-drying technology to transform fruits, vegetables and plants like acerola, acai, green coffee into a wide range of extracts. Moreover, it has a range of more than 100 botanical products and solutions, which include healthy ingredients as well as organic powdered fruits, food colorings, vegetable milks and nutritional extracts.
Furthermore, Archer Daniels is likely to benefit from Yerbalatina’s natural botanical extracts that comprise organic-certified ingredients, R&D competencies and expertise. This will reinforce the company’s leadership in science-based microbiome solutions for human and animal wellness.
We note that the global retail market for foods, beverages and supplements, highlighting health & wellness concepts, is flourishing and is anticipated to reach $750 billion. Impressively, the addition of Yerbalatina to the company’s portfolio is an important tool and will continue to leverage the power of nature to enrich human and animal health.
Meanwhile, Archer Daniels’ three strategic pillars — optimize, drive and growth — as well as Project Readiness initiative to drive overall growth bode well. The Readiness goals of improving business, standardizing functions and enriching consumers’ experience are on track.
The company’s strategic pillars, guided and supported by the Readiness program, are focused on accelerating and enhancing competitiveness. Management is optimistic about Archer Daniels’ leadership in key global trends like flexitarian diets, nutrition and sustainable materials. Moreover, the company is focused on investing in assets and technological capabilities to serve customers efficiently as well as boost growth.
Price Performance & Zacks Rank
Shares of the agricultural products company have gained 8% in the past six months compared with the Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.