Milling & Baking News - March 27, 2018 - 13

Business

ADM in realignment; new names
for business reporting segments
CHICAGO - Archer Daniels Midland Co. is realigning its business segments into four units: Carbohydrate
Solutions, Nutrition, Oilseeds and
Origination. The company said the
new segments better reflect ADM's
operating structure and will allow it to
further highlight the differences in its
product and service offerings.
ADM's business segments previously were Agricultural Services,
Corn Processing, Oilseeds Processing
and Wild Flavors & Specialty Ingredients. The new business segments will
be reflected in the financial results for
the first quarter of 2018, which ADM
will present May 1.
Carbohydrate Solutions will include corn and milling operations.
Chris Cuddy, president of corn processing, will expand his role and
head Carbohydrate Solutions.

Nutrition will include the Animal
Nutrition and Bioactive businesses as
well as Wild Flavors & Specialty Ingredients. Vince Macciocchi, president of
W.F.S.I., will expand his role and head
Nutrition.
Origination will include the Agricultural Services Business, excluding
milling. Stefano Rettore will become
senior vice-president and president,
Origination, while continuing as
ADM's chief risk officer.
The Oilseeds business unit will remain unchanged. Greg Morris will
continue as president of the unit.
"The changes we are announcing
today enhance and accelerate our
efforts to deliver value-added, differentiated products and services
and drive growth across our entire
portfolio," said Juan Luciano, chairman and chief executive officer of

Top market trends driving investment
in natural and organic brands
ANAHEIM, CALIF. - Emerging
brands in the natural and organic
marketplace continue to capture the
attention of hungry investors. As
conventional food brands lose share
to start-ups, the pace of investment
has accelerated, and the models of
investment are evolving, said Bill
Tuohig, senior vice-president and
market leader, NEXT at New Hope
Network.
"Certainly, there's a lot of capital
chasing this space," Mr. Tuohig said
during a presentation at Natural
Products Expo West, held March 8-11
in Anaheim. "There is a lot of growth
and excitement in this industry."
Between 2009 and 2014, the largest packaged food companies in the
United States lost an estimated $19.1
billion in revenue to small and medium-size competitors, Mr. Tuohig said.
"A study from Nielsen showed
that 74% of the growth (in the U.S.
food and beverage industry) that we
can measure between 2012 and 2016
was driven by the smallest 20,000
companies," he said. "And thinking
just about natural and organic food
and beverage, specifically, that subsector is going to grow 75% between
2014 and 2019 to $108 billion."
As competition increases, brands
and investors must place bets earlier
and earlier, he said. He and Eric J.
bakingbusiness.com / world-grain.com

Pierce, vice-president of business insights, NEXT at New Hope Network,
identified which market trends are
most attractive to investors and

INTERFOODS, FOUR SIGMATIC, HEMP2O AND HONEY MAMA'S

consumers. Among them are clean,
wholesome nutrition, plant-based
foods, mission-driven brands and
trust and transparency.
"Consumers are looking to more
whole food, clean, simple, clean label ingredients," Mr. Pierce said.
"This whole food phenomenon is
born out of this broader context of
growing consumer awakening and
erosion of consumer trust."
Digestive health is another area
of interest among consumers and

ADM. "We have made tremendous
progress over the last several years
in creating a more agile and efficient
company, and these changes position us to build on that momentum
as we work to further enhance the
customer experience and provide
even greater value to customers and
shareholders."
ADM reported two other personnel changes on March 19. Joe Taets
will take over the newly created role
of senior vice-president and president, Global Business Readiness. He
will focus on delivering cost-savings, efficiency and business process
initiatives within Ag Services. Kristy
Folkwein will become senior vicepresident and chief information officer. She will focus on ensuring the
quality and integrity of ADM's data
companywide, provide leadership to
the global shared services organization, and enable analytics that drive
sound, well-informed business decisions. MBN
investors surveyed by New Hope Network, as new functional formats and
formulations pop into the market.
"We're seeing opportunities in
supplements continue to grow, but
we're also seeing the migration of
this conversation about gut health
to being something much more
about holistic human health," Mr.
Pierce said. "We're seeing evolution
of fermented foods as well as probiotic functional foods coming into the
marketplace. Lots of innovation is
happening both in the prebiotic and
probiotic space. Everyone is really
quite bullish on this."
A desire for foods with functional
ingredients, such as mushrooms or
hemp, also is driving innovation and
investor interest, Mr. Tuohig said.
Punching up the nutrition in a pantry
staple such as jelly with the inclusion
of chia seeds, for example, is gaining
favor over enriched or fortified foods
that today's consumer may perceive
as overly processed or unnatural.
Brands seeking investment must
thoroughly understand the business,
market, consumer and customer, Mr.
Tuohig said.
"You may have the most passionate idea, but if it doesn't make sense
to investors or if investors can't get
excited about it, then you're going to
run out of gas, so to speak," he said.
"If investment or capital is the gas
that fuels the engine, you've got to
make sure you have access to gas." MBN
Milling & Baking News

March 27, 2018 / 13

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Milling & Baking News - March 27, 2018

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