Cargill is in talks to withdraw from its global sugar trading business. The agri-food powerhouse is now eyeing the potential sale of a 50 percent stake Alvean, a joint venture with Brazilian sugar giant Copersucar.
Following the pending divestiture, Cargill would pivot its focus toward its food processing and meat activities.
Both companies have declined to provide financial details on the proposed transaction, with the deadline of the divestment still uncertain.
“There has been no change in [Alvean’s] structure or how it serves its customers,” Paulo Mathias, service manager at Copersucar, tells FoodIngredientsFirst.
“The two shareholders have discussed an agreement where Copersucar will become the sole owner and acquire Cargill’s shares in Alvean,” he continues.
“If an agreement is reached, we will communicate appropriately.”
FoodIngredientsFirst has reached out to Cargill for additional comment.
Agri-food giants offload sugar assets
Alvean was formed in 2014 when parent companies Cargill and Copersucar decided to merge their global sugar trading activities.
Between 2019 and 2020, Alvean represented an estimated 20 percent of global sugar shipments.
Cargill’s targeted divestment comes after a similar announcement from Louis Dreyfus Co. last September, which targeted the sale of its Brazilian mills to Raízen, a sugar heavyweight of the South American market.
Cargill business highlights
Amid the tumultuous COVID-19 period, Cargill oversaw business global expansions that included the roll out of new alternative meat products and foray into new markets for chocolate.
Cargill is expanding its European lineup of plant-based solutions to include pea protein varieties, expanding beyond its active markets for these products in North America, Asia and South America.
Meanwhile, it has announced its private label plant-based patties and ground products will hit retailers and restaurants in the US by early April.
Last June, the supplier entered the chocolate business in India through the inauguration of its first chocolate manufacturing operation in the country.
by Benjamin Ferrer
Schumacher will replace Alan Jope, who announced his decision to retire last September, less than a year after a failed attempt by Unilever to buy GlaxoSmithKline’s consumer healthcare business and just months after activist investor Nelson Peltz joined the company’s board.
Globally, plant-based ice creams have doubled their share of the market over the last five years, according to Tetra Pack. Pea protein and coconut milk are leading the way, but Tetra Pak cites data showing that oat-based ice cream launches have doubled in the previous year.
A myriad of so-called eco-labels are being rolled out across various F&B products, but with no gold standard or strict rules governing precisely what the logos mean and what methodology is behind them, concerns are growing that they will confuse consumers and ultimately be counterproductive.