There is a significant percentage of millennials who prefer organic and plant-based food products as against conventional animal-based products. The rate of adoption of plant-based food & beverages among the consumers is observed to be rising steadily with a variety of product availability, fine product developments, and innovative plant-based proteins.
For the past few years, the food giants have been struggling to meet the needs of the rising population adopting a plant-based lifestyle; thus, the sector is experiencing a large number of M&A in the plant-based food industry.
In July 2021, Archer-Daniels-Midland (ADM), an American multinational food processing company, entered into an agreement to acquire Sojaprotein, a European provider of a range of non-GMO vegetable protein ingredients. The company is involved in producing ingredients for meat alternatives, confectionery, protein bar, pharmaceutical, pet food, and animal feed segments for European and global customers.
ADM wants to expand its production capacity with this acquisition in southern Europe together with the network of customers whom the company is providing with nutritious plant-based foods and beverages. As the consumer base for plant nutrition is growing rapidly, encompassing vegetarians, vegans, and those consumers who identify as flexitarians, food giants are recognizing this pattern of shift and expanding their plant-based portfolios.
The company has already entered into various business strategies in alternative proteins. For instance, the company’s soy protein complex in Campo Grande, Mato Grosso do Sul, Brazil; its new pea protein plant in Enderlin, North Dakota; its PlantPlus Foods joint venture; and also, partnerships with innovative startups like Air Protein. With this new acquisition, the company extends its foothold in the European region thus, increasing its overall market share in the plant-based industry.
Similarly, JBS, the Brazilian meat giant, entered into a deal to acquire Vivera, Europe’s third-largest plant-based food company, in April 2021. The deal was closed at US$409 million. According to the deal, JBS will take over Vivera’s three factories and its R&D center, based in the Netherlands. This business move is a boost to the global expansion of JBS in the plant-based sector.
The company has plant-based brands in Latin America, with Seara’s Incrivel line, which dominates the market with plant-based hamburgers in Brazil, and Planterra, with the OZO brand in the United States. With the acquisition of Vivera, which offers a range of innovative plant-based meat replacement products, JBS is projected to expand its market share in the Netherlands, United Kingdom, and Germany. JBS is not only increasing its exposure to plant-based proteins by the acquisition but also has the objective to develop a higher margin and value-added product range.
