This project examined the strategies that had been followed by 11 sugar companies in attempting to diversify by offering other food and feed ingredients.
Sugar companies have tried to diversify into ingredients by two methods: ‘organic’ growth from within, or by acquisition. Success in organic growth has been achieved but this has taken many years and required the patient investment of considerable resources. The most successful company by the acquisition method has built a world-class ingredients company based on numerous acquisitions.
As part of a series of projects performed for our client, a sugar company, we provided overview of the ingredients business to indicate the relative size and growth rates of a number of sectors as potential targets for diversification.
Here we discuss alternative strategies for diversification, including organic and inorganic growth, and vertical integration. These are presented in the context of examples from the European sugar industry.
Click here for a PDF of the contents of the study or look below for an outline.
Table of Contents
Overview of strategies
- Value-added products from sugar
- Acquisition of other businesses