Dive Brief:
- Four companies from the food and beverage industry made Fortune's recent list of 25 Most Important Private Companies.
- Cargill was the only company to make the top 10 (No. 6), followed by Mars (No. 13), Publix (No. 16), and US Foods (No. 21).
- The new list was compiled based on factors including companies' "prodigious revenues or assets, their social currency, their deep connection to our daily lives, and (particularly for the newer and smaller companies), their disruptive impact," according to Fortune.
Dive Insight:
Cargill is an obvious addition to this list as the largest private company in the U.S., having pulled in revenues of just over $120 billion in fiscal 2015. The agriculture and ingredients giant has been making massive changes to its portfolio in the form of both divestments and acquisitions. Cargill is moving away from commodities and toward more ingredients-based businesses that are less volatile.
And those changes are necessary. A challenging agricultural market with large global stockpiles and low crop prices has dragged down Cargill's earnings over the past two years. In becoming a leaner company with a shifted focus, Cargill has started to turn that around, as evidenced by more recent earnings results. It's also developed a way to use essential oils to replace antibiotics in poultry in addition to other ingredients to replace those consumers are avoiding.
Mars is another expected addition to the list, albeit much smaller than Cargill with $33 billion in annual sales. This private food company has been a vocal advocate for change in the food system and used its portfolio to set an example.
Mars committed to removing artificial colors across its entire human food portfolio and labeling GMO ingredients in its products. The company also supports government initiatives like the FDA's proposal to label added sugar and the FDA's potential sodium reduction guidelines. Supporting these initiatives can prove a boon for manufacturers' reputations in both peer and consumer eyes.