Agricultural giant Archer Daniels-Midland (ADM) is concluding 2023 with two major acquisitions in the flavors and ingredients category. The company is set to acquire dairy flavoring maker Revela Foods, known for its leadership in the dairy ingredients space with $240 million in sales this year. Revela Foods utilizes enzyme technology in three Midwest production facilities to craft dairy flavorings for various food applications. The acquisition is expected to enhance ADM's presence in the North America savory flavors segment, with completion anticipated in early 2024.

In addition, ADM is acquiring UK-based functional ingredients producer FDL, projected to have $120 million in sales in 2023. FDL specializes in creating over 10,000 proprietary flavor formulations and has a strong foothold in the European foodservice sector. The acquisition is slated to close in January. These strategic acquisitions reflect ADM's commitment to becoming a leader in the ingredients space.

ADM's 2024 ingredient trends forecast highlights the significance of bold colors and flavors, increased interest in better-for-you attributes, and affordability in new products within the food and beverage industry. Beyond these acquisitions, ADM is also leveraging new technological capabilities, particularly through its partnership with Brightseed, where artificial intelligence is utilized to study molecular interactions between plants and the microbiome, assessing the nutritional aspects of ingredients. This reflects ADM's forward-looking approach to innovation in the evolving food and beverage landscape.