Associated British Foods ("ABF") the international food, ingredients and retail group announces it has reached agreement with Archer Daniels Midland Company ("ADM"), the global agricultural processor, on the creation, with immediate effect of Stratas Foods, a joint venture for the manufacture, marketing and distribution of packaged oil products in the US and Canada. ABF and ADM will each hold a 50% share in the joint venture.
Stratas Foods will serve the foodservice, speciality food ingredient and retail private label bottled oil markets. It is expected to produce 2.5 billion lbs of oil in its first full year of operation with revenue of some $1.4bn. Its broad portfolio of products includes vegetable oil, shortening, margarine and pan spray and its foodservice brands include Whirl and Frymax.
The joint venture combines the strengths of two leaders in the packaged oils industry. It will build on the sales and marketing expertise of ACH Food Companies ("ACH"), and the origination and processing capabilities of ADM. It will offer an integrated supply chain, exceptional processing capabilities, industry-leading product development and strong sales and marketing.