Dive Brief:

• Olam International Ltd., a world-leading agribusiness trader, on Monday announced a $209 million loss in the fourth quarter, the result a $192.6 million charge for its investment in stevia sweetener company, PureCircle Ltd. The share price for PCL has suffered from a prolonged decline.
• Despite the write down, the Singapore-based company's revenues were up 11.7% to $5.4 billion in the fourth quarter.
• Olam's Edible Nuts, Spices and Vegetable Ingredients division experienced an uptick in volume sales in the quarter, from 240,000 metric tons to 464,000 metric tons, while revenues rose from $1 billion to $1.2 billion.

Dive Insight:

Olam's intent to focus on acquisitions should bode well for its long-term health, borne out by the experiences of other ingredient-industry companies. Earlier this year, when Archer Daniels Midland Co. announced lower than expected earnings, it also announced the acquisition of Harvest Innovations, a leader in minimally processed, expeller-pressed soy proteins, oils and gluten-free ingredients, which will expand the company’s healthy, clean label portfolio.

"We are not done growing," said Vince Macciocchi, president of the ADM's WILD Flavors and Specialty Ingredients division, in a news release. The company has also added Eatem Foods Co., a developer and producer of savory flavor systems; and Superb, which is made from soybeans, to its specialty proteins sector.

Earlier this year, when announcing its fourth quarter results, Ingredion Inc.'s officials announced they anticipate expanding their specialty portfolio. The company lowered its cash and short-term investments by $174 million, used to pay $434 million for the acquisitions of Penford Corp. and Kerr Concentrates, which create a stronger foothold in the specialty ingredients market.

In February, when announcing its 2015 earnings, Ireland-based Glanbia plc stated its plans to replicate the successful acquisition strategy of its performance nutrition unit to boost activity in its global ingredients unit, either through acquisitions or partnerships.

Through its acquisition approach, Ireland's Kerry Group has expanded its presence in the U.S. market with the purchase of three U.S. companies. The group also purchased Wynnstarr Flavors and KFI Savory, part of Kraft Food Ingredients.

And Israel-based Frutarom has been on an acquisition spree to boost its portfolio of specialty fine ingredients, completing 29 acquisitions in five years.