RE:expanding one more
As we have stated in the past, Burcon does not receive sales and revenue guidance from ADM. However, they have given some color through their recent public statements for their specialty proteins business, stemming from their intended acquisition of Wild Flavors. ADM has forecasted Wild Flavors specialty ingredients to have $2.5 billion in revenues in 2015, with revenue targets of $5 billion in five years and $10 billion in ten years.
Given the high single growth rate of each component division, ADM will be looking for cross-selling synergies, new product sales, and acquisitions to drive the balance of the growth. We’ve witnessed a change in capital market perceptions of our industry since this past March, when ADM first announced their intention to expand to full commercial production of Clarisoy.
The change is that the capital markets now understand ADM’s strategy to become one of the top global specialty ingredient companies, with enough of a footprint for that division to be one of ADM’s growth engines.
Operationally, and building on last quarter’s announcement of ADM’s intention to expand commercial production to a full-scale Clarisoy production plant, ADM has launched a new version of Clarisoy at this year’s Institute of Food Technologists annual meeting and food exposure in New Orleans.