Olam plans multi-billion investment in its global operations
Global food and agri-business Olam International (“Olam”) today announced its 2019-2024 strategic plan which will see investment of over $3.5 billion into strengthening its business operations in response to consumer trends.
The company said that is seeking to react to increased demand for healthier foods (including snacks and confectionery), traceable and sustainable sourcing, e-commerce and the rise of “purpose” brands.
According to the company, which also has an extensive cocoa sourcing division (pictured) operating within confectionery, it plans to invest US$3.5 billion (including maintenance capex) to strengthen businesses with high growth potential, while releasing US$1.6 billion by responsibly divesting certain businesses and assets lying outside the strategic priorities over the course of this plan.
Olam has already established global leadership positions in multiple speciality agri-products and food ingredients, with defensible strategies for more mainstream bulk products. The company’s operations extend across the value chain, including buying from an extended network of 4.7 million farmers, managing orchards, plantations and farms, processing and ingredients innovation. This new strategy builds on the current business model which has yielded strong results and growth across the firm’s diversified portfolio. Co-Founder and Group
CEO, Sunny Verghese said: “With our focus on farm-gate origination, end-to-end traceability, sustainability, digital initiatives and innovations like AtSource1 , Olam is already primed to start capturing growth from this fast-changing landscape. Now, following a comprehensive review, our strategy is fully focused on harnessing these health and ethical sourcing trends, as well as changing consumer preferences. Crucially, our strategy will allow us to play a leading role in re-imagining global food and agri-supply chains for the better – sourcing raw materials within the earth’s capacity to regenerate and transforming those materials to deliver food, feed and fibre for a growing population.”