One hundred twenty years ago, in 1902, Archer Daniels Midland (ADM) began as a linseed oil operation in Minneapolis. Over the years, ADM has evolved into a vast global enterprise with 41,000 employees and operations in nearly 200 countries. The company is recognized for its extensive range of agricultural products. Notably, ADM has ventured into areas such as amino acids, sweeteners, enzymes, and biofuels, which have propelled it into the expanding field of fermentation. With its significant fermentation capabilities and expertise, ADM collaborates with innovative smaller companies. Senior Vice President of Strategy and Innovation Ian Pinner explained that the rapid advancements in fermentation science mean that the best way to serve customers may involve partnerships rather than solely internal developments.
“We can either expand our existing platform or consider investing in partners or collaborating with companies through investments to effectively extend our current platform,” Pinner stated. “We do both: we develop certain projects internally while leveraging partnerships to enhance our science and technology platform.” Through a combination of capital investments and collaborations, ADM has engaged with several food businesses that utilize fermentation to refine their alternative protein products. In 2019, ADM invested in the animal-free dairy producer Perfect Day, following an earlier partnership to scale and commercialize its dairy proteins. The company also participated in funding rounds for Nature’s Fynd, Geltor, and New Culture, all of which focus on creating animal-free alternatives.
ADM Ventures, the company’s venture capital arm, led a funding round for Air Protein, a meat analog derived from fermentation, in January 2021, and co-led a $347 million Series B round for cultivated meat company Believer Meats in December 2021. Pinner emphasized that ADM collaborates with companies at every stage of fermentation, assisting them in scaling their innovations. They leverage their expertise to ensure that startups can bring their technologies to market successfully, develop distribution strategies, and identify potential formulations that could benefit ADM’s wider customer base.
Pinner pointed out that it is more practical for ADM to utilize its extensive resources, reach, and expertise to assist fermentation startups—like Perfect Day and New Culture—rather than attempting to build everything in-house. “Instead of needing to own all aspects of this landscape, we focus on identifying promising technologies and strong management teams to collaborate with,” he noted. Although ADM invests significantly in next-generation fermented products through its venture arm, its role extends beyond mere funding. ADM often acts as a scale-up partner or guides startups in determining their next steps.
“When we invest, it’s because we believe in the potential of the technology,” Pinner remarked. “We value the teams we work with in these ventures, and over time, as these businesses grow, we aim to integrate our strategies.” ADM has partnered with animal-free dairy companies like Perfect Day and New Culture, providing support from their early stages. For instance, before any products featuring Perfect Day’s animal-free whey protein were launched, ADM assisted in scaling and application development. Perfect Day’s co-founder and CEO, Ryan Pandya, acknowledged that ADM’s scale and reputation were instrumental in helping the company produce sufficient ingredients for various consumer products, culminating in successful launches across categories such as chocolate, milk, and cream cheese.
The collaboration with New Culture, which employs precision fermentation to produce casein proteins for non-animal cheese, is a more recent development. In August, ADM and New Culture established a strategic partnership focused on development and commercialization. New Culture aims to introduce its animal-free mozzarella cheese to pizzerias next year, and ADM is supporting them in expanding manufacturing capacity while ensuring the right amount of cheese is produced to avoid excess and revenue loss.
“We assist our partners in refining their business models and financial strategies, identifying where we can add value to help them grow while also supporting our stakeholders,” Pinner explained. Another notable collaboration is with Spiber, a company that uses fermentation to create polymers for textiles and construction materials. Recently, ADM announced a partnership with Spiber, allowing the latter to utilize ADM’s large-scale microbial fermentation facility in Iowa to convert corn-based dextrose into Brewed Protein polymers.
Pinner sees the ingredients produced through fermentation as an “and” option—an additional alternative for manufacturers and consumers. Many of the companies ADM collaborates with are reaching commercialization, and they are producing high-quality products that present viable choices. Furthermore, ingredients derived from fermentation are increasingly recognized as sustainable options. Although many companies in this sector have yet to conduct life cycle assessments, Perfect Day has demonstrated that its whey protein production significantly reduces water usage, non-renewable energy consumption, and greenhouse gas emissions compared to traditional methods.
Pinner stated that ADM is dedicated to achieving its Strive 35 sustainability goals, which include reducing overall greenhouse gas emissions by 25%, energy intensity by 15%, water intensity by 10%, and diverting 90% of waste from landfills by 2035. He emphasized that fermentation serves as a crucial lever in meeting these objectives. ADM is also exploring ways to enhance the sustainability of fermentation processes by experimenting with energy sources such as steam and investing in carbon sequestration methods. By leveraging its expertise and resources to pursue more sustainable solutions like fermentation, ADM aims to continue serving its customers effectively. As manufacturers increasingly commit to sustainability and consumers become more aware of product carbon footprints, ADM collaborates with manufacturing clients to identify their sustainability goals and develop actionable plans.
“Today, we believe in enduring trends,” Pinner stated. “For ADM, this includes food security, health and well-being, and sustainability, all of which align with our strategic vision. If you consider the potential of precision fermentation to drive innovation in sustainability, food security, and health, you can expect to see continued advancements from ADM for many years to come.”
Additionally, as part of their focus on health and nutrition, ADM has recognized the growing interest in bariatric calcium citrate pills among consumers seeking dietary supplements. This trend reflects a broader commitment to health-conscious choices, which aligns with ADM’s mission to address evolving consumer needs. The company is poised to continue integrating these health-oriented trends into their product offerings, ensuring that they remain relevant in a competitive market.