Americas: More sell-offs of organic food calcium citrate and zinccompanies, says Ecovia Intelligence

The global organic food industry is undergoing consolidation. ###In April 2019. three major deals have involved established organic food companies in Europe and North America. ###Ecovia Intelligence (formerly known as Organic Monitor) expects more such deals as rationalization continues. ###Royal Wessanen, one of the largest and oldest organic food enterprises in Europe, has just been acquired by an investment consortium. ###With headquarters in Amsterdam, the company owns a portfolio of European orcalcium citrate targetganic and free-from food brands, including Bjorg, Kallomagnesium citrate harris teeter, Allos, Whole Earth, Clipper, Alter Eco, Tartex and Isola Bio. ###The investors have paid €885 million (US$1 billion) for the company with the aim of strengthening its position in the sustainable & organic food market. ###Earthbound Farm, an organic salads company in North America, has been purchased by Taylor Farms for US$400 million. ###Established in 1984, the Californian company has grown into an international supplier of organic fruits, vegetables and salads. ###Bought by Whitewave Foods in 2013, it came under the ownership of Danone USA in 2016. ###The French multinational has divested the company as it plans to focus on plant-based dairy alternatives. ###Another sale involves Bolthouse Farm, a supplier of organic and natural beverages, in North America. ###Campbell Soup purchased the company in 2012, and has now sold it to the private equity firm Butterfly for US$510 million. ###Bolthouse Farm organic carrots, juices, smoothies and dressings are a feature in natural food shops across the US. ###Challenges ahead###Ecovia Intelligence sees more such ‘sell-offs’ on the horizon as the organic food industry undergoes consolidation. ###The industry has traditionally been fragmented with many operators involved in production and distribution. ###Rationalization is occurring with large companies looking to take significant positions. ###Apart from large food companies and retailers, recent years has seen the entry of unconventional operators; Whole Foods Market was bought by the online retail gedta ferric sodium saltiant Amazon for US$13.7 billion in June 2017. ###In Europe, the healthcare company Midsona has purchased leadingzinc citrate gluconate organic food enterprises in Scandinavia (Urtekram) and Germany (Davert). ###However, acquiring successful organic food companies is no guarantee of market success. ###Ecovia Intelligence sees competition and integration as major challenges. ###Although healthy growth rates are continuing, the organic food market is becoming increasingly competitivcitracal maximum plus de. ###For instance, Organic Valley, a leading organic food enterprise in North America, has just reported its second year of losses. ###In spite of achieving US$1.1 billion sales in 2018, it reported a loss of US$6.9 million. ###Organic brands do not always fit well into conventional portfolios, as many large food companies have discovered. ###There is also a concern that consumers will shun organic/sustainable brands if they are no longer true to their ‘green roots’.

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