ADM is expanding its health and wellness portfolio with its pending acquisition of US-based Deerland Probiotics & Enzymes. The financial details of the move, pegged as reinforcing growth across ADM’s nutrition business unit, have not been disclosed.

“Deerland’s products and solutions include spore probiotics, which offer enhanced stability for a wider use in both food and beverage and supplement applications and represent a strategic extension of ADM’s health and wellness capabilities,” Jackie Anderson, media relations for ADM, tells NutritionInsight.

“This will allow us to continue to grow in how we’re meeting customer needs in this key space.” 

Juan Luciano, chairman and CEO of ADM, explains: “The microbiome represents one of ADM’s six strategic growth platforms, and with global demand for health and wellness products estimated at more than US$775 billion, today’s investment represents a significant step forward for ADM.”

With the revenue contribution from the addition of Deerland, annualized revenue for health and wellness will exceed US$500 million.The pending acquisition by ADM expands its portfolio of functional ingredients for health-conscious consumers.

Gutsy investments in microbiome products
According to Anderson, the company has invested in the fast-growing market of food, beverages and supplements that enhance health and wellness, in recent years.

Deerland’s probiotic and dietary supplements encompass 12 product lines in the areas of digestive health, immune health, women’s health, food intolerance, sports nutrition, cellular repair, and systemic and cardiovascular health. 

Scott Ravech, CEO of Deerland Probiotics & Enzymes, says: “The hand-in-glove fit of Deerland’s vast portfolio of branded technologies, clinical studies and world-class dosage form production capabilities combined with ADM’s health and wellness solutions allows us to provide our dietary supplement and food and beverage customers with a broader array of products and capabilities.”

Functional ingredients
The transaction, subject to regulatory approval, is expected to be completed in the coming weeks. In Georgia, Deerland operates five manufacturing facilities, one fermentation facility and eight R&D and quality control laboratories globally.

This acquisition is the latest in a series of ADM strategic investments to build a global health and wellness business to meet demand for food, beverages and supplements.

A few of ADM’s growth initiatives included acquisitions like Protexin and Biopolis, organic capacity investments to expand probiotics production at its Valencia facility, and its recently-announced joint venture and previous partnership with Vland.Consumers want foods and beverages that support gut health. 

Gut health on the brain
While consumer interest in improving gut health is identified as a long-term trend stemming from the COVID-19 pandemic, it also has renewed interest in mental health support, “with many looking for more effective ways to cope with stress and anxiety.”

Anderson notes that wholesome nutrition is one-way consumers are looking to meet their health goals. They want foods and beverages that support gut health.

“Consumers are seeking out ways to be more proactive about supporting their mind and body through a balanced approach to diet and lifestyle,” says Anderson. 

Innova Market Insights research shows that recognition of the gut microbiome’s influence on human health has driven a decade-long boom in the digestive health category, led by probiotics. The majority of consumers surveyed across 25 countries recognize that good digestive health is linked to overall health.