Interview: ADM stands by nutrition strategy amid plant-based slowdown

ADM reinforces its commitment to integrated nutrition solutions across its ingredient portfolio and alternative protein innovation amid a slowdown in the plant-based space. The food leader maintains that nutrition solutions for people and pets will continue to underpin its consolidation strategy and uncover new growth opportunities.

In this interview, ADM’s Ian Pinner, senior vice president, president of the Nutrition division and chief sales and marketing officer, tells us why investors should not be concerned by the plant-based market’s slowdown, how the company will continue to integrate value-added nutrition across its ingredient portfolio and what to expect from the emerging pet nutrition space.

Plant-based and protein diversification

The food industry has witnessed an enormous boom in plant-based protein development in recent years. However, before any burgeoning market can stabilize, there tends to be a downward curve, Pinner tells Food Ingredients First.

“The alternative protein market is now beginning to level out with an anticipated steadier growth trajectory.”

“When considering the future of protein sources, it’s not an ‘or,’ it’s an ‘and.’ We must find ways to feed a growing global population and provide necessary nutritional value, such as protein content. Diversifying protein sources by tapping into both animal-derived and plant-derived offerings can address the need for sustainable nutrition that keeps what’s best for people and the planet in mind.”

ADM has innovated in plant-based for over 75 years, supporting the original textured vegetable protein (TVP). The company patented TVP as the first plant-based meat alternative and used it to create the world’s original soy-based patty in 1991.

“We continue to see opportunities for development, especially as we look to support a more resilient food system through high-quality alternative nutrition options,” says Pinner.The plant-based space is slowing down, which is typical of a burgeoning market before stabilization.

Integrated nutrition solutions

ADM’s history spans over 120 years, providing a strong foundation with a vast portfolio of ingredients and science-backed solutions that satisfy tastes and fulfill nutritional needs. By leveraging its highly integrated value chain, the company can further extend into the nutrition sector.

“Over the past decade, we have invested in our global capabilities and talent — acquiring key businesses in flavor capabilities and functional ingredients, growing our sustainability efforts and strategically expanding our innovation centers for both human and animal nutrition, adding value to each part of the global nutrition supply chain with a worldwide footprint,” explains Pinner.

This ongoing advancement of ADM’s capabilities has led the company to fully incorporate nutrition across all aspects of its business and the entire value chain.

“Nutrition is not a standalone business for ADM, but rather an important value-add to our extensive range of ingredients and solutions, making it a critical building block of ADM’s future,” adds Pinner.

Acquisition strategy

Meanwhile, the company sees the accelerated integration of recent acquisitions into its business as crucial to delivering value to its customers through nutrition solutions.

“This focus includes portfolio optimizations made possible by accelerating the integration of recent acquisitions, such as bringing on FDL and Revela Foods to add even more capabilities to our flavor portfolio, which is a fast-growing segment in our Nutrition business, as well as balancing and improving fulfillment to synchronize with demand,” continues Pinner.

“Through our ongoing evaluation of investments and refocusing of our priorities, including identifying alternative avenues of value creation, we are continuing to support our customers from ideation to market launch, enabling differentiated nutrition solutions tailored to evolving needs, preferences and demands.”

For example, as the demand for alternative proteins has stabilized, ADM has leveraged its Protein Innovation Center in Decatur, Illinois, US, to focus on blends and other solutions to meet current customer needs.ADM foresees “unique opportunities” in the emerging pet nutrition market.

Pet nutrition potential

Pet nutrition is a strong-performing segment and provides unique opportunities for ADM. According to the company’s Outside Voice consumer research, 85% of global pet parents agreed that proper nutrition and supplements are as important for their pets as they are for themselves.

“The demand is certainly there from the consumer side. It’s also a natural extension for ADM, leveraging our wide-ranging pantry of health and wellness ingredients, such as microbiome solutions, alongside our protein ingredients, naturally derived flavors and colors, texturants and more,” says Pinner.

“As we continue to build upon our overall human and animal nutrition capabilities, pet nutrition will remain an important element of our greater portfolio.”