Ardent-ConAgra-Cargill Venture Leads To Innovative Flour And Grain Products
By Karla Paris
Food conglomerate celebrates the opening of its flour-milling business in Colorado
On Friday, May 30 Ardent Mills, a flour-milling company supported by 40 mills, three bakery-mix facilities, and a specialty bakery marked its first day of business in Colorado. Nearly 14 months ago, in March 2013, Ardent Mills announced the combination of its operations with ConAgra Mills and Horizon Milling, a Cargill-CHS joint venture.
The conglomerate maximizes the combined assets, capabilities, and experience of its parent companies to bring innovative flour and grain products, services, and solutions to the marketplace. Ardent Mills brings to the table its unique set of services, including product development resources, technical and application support, supply chain management, and commodity price risk management. While ConAgra Foods, Cargill, and CHS provide Ardent Mills access to milling market knowledge, transportation logistics, consumer insights, wheat sourcing capabilities, food ingredients, and culinary expertise.
Wheat flour consumption declined slightly during the last five years primarily because consumers were avoiding the carbohydrate-heavy characteristic associated with flour-based products. Instead, consumers looked for healthier options like the Adkins diet and the Gluten-Free movement. Producers, such as the Cargill-Ardent-ConAgra Foods conglomerate, are responding to consumers’ health concerns by offering whole wheat and other healthy products, such as gluten-free flour, to earn back its market share. Flour is the main product of the milling industry, accounting for an estimated 63.8 percent of revenue. Milled rice makes up 21.0 percent of revenue, while malt and other products comprise 5.7 percent and 9.5 percent of industry revenue, respectively.
This is not the only joint venture Cargill has entered into in the last month or so. In an aggressive move, Cargill entered into a joint venture with Copersucar, the biggest Brazilian trader of sugar, which combines the business’ global sugar trading activities. This venture pools the capabilities of each company, increasing the efficiency, quality, and services in its sugar supply chain, utilizing Copersucar’s and Cargill’s strengths, as well as leveraging an in-depth understanding of the worldwide market to the benefit of its customers. ConAgra Foods and Cargill each own a 44 percent stake in Ardent Mills, with CHS owning a 12 percent interest. All three companies have representatives on Ardent Mills’ board of directors. The launch of production at the Colorado facility is a win-win-win for all companies involved.