ACH, ADM partner in J.V. for oil products
October 27, 2008
by FoodBusinessNews.net Staff
MEMPHIS, TENN. — A joint venture between ACH Food Companies, Inc. and Archer Daniels Midland Co. will focus on manufacturing, marketing and distributing packaged oil products in the United States and Canada, the companies said while announcing the agreement Oct. 27. ABF and ADM each will hold a 50% share in Stratas Foods, L.L.C., the new company created by the joint venture.
"By joining ADM’s sourcing and processing with ACH’s sales and marketing, Stratas Foods will benefit both customers and shareholders," said Mark Zenuk, vice-president, global oilseeds, ADM. "ADM’s integrated and efficient processing operations and ACH’s access to higher-margin markets will help keep costs low and enhance profitability. We are proud to join with ABF in creating a world-class packaged oil business."
Dan Antonelli, currently president of ACH, was named chief executive officer of Stratas Foods. The new company will be headquartered in Memphis and serve the foodservice, specialty 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, according to the companies. Its product portfolio will include vegetable oil, shortening, margarine and pan spray, including foodservice brands.