Green Plains purchases Fleischmann’s Vinegar

By Ann Bailey | October 03, 2016

On Oct. 3, Green Plains Inc. announced the acquisition of Fleischman’s Vinegar Co. for $250 million. Fleischmann’s Vinegar Co. is the largest manufacturer and marketer of food-grade industrial vinegar.

Fleischman’s Vinegar, with headquarters in Cerritos, California, is an all-natural ingredients company serving markets and end-use applications including food and beverage ingredients, antimicrobials, bio-herbicides and cleaning products across the food, beverage, agricultural, industrial and wholesale markets.

“We are very excited to announce the acquisition,” said Todd Becker, Green Plains president and CEO. The strategic acquisition of FVC brings a new adjacent business that adds a consistent, growing earnings stream and expands Green Plains’ focus on the food and feed ingredients industry, Becker said.

“Our long -term strategy is centered around growing our company to take advantage of the rising global demand for energy and food products. The Fleischmann’s vinegar portfolio is well positioned beyond food ingredients, ranging from antimicrobials, animal feeds, herbicides and disinfectants, to name a few.”

Meanwhile, Green Plains has an extensive network of relationships with food and ingredients companies to help Fleischmann’s expand its potential reach to new customers and new markets, Green Plains said.

Fleishmann’s Vinegar is seeing growing interest, demand and adaption of antimicrobial technology without usage of chemical preservatives, Green Plains’ ability to produce industrial ethanol will help FVC address that market; relationships with packers and protein producers who need non-chemical solutions for the market, Green Plains said.

“The Fleischmann’s Vinegar acquisition will lead to further supply chain opportunities within Green Plains, as its largest production cost is food-grade ethanol,” Becker said. “We will use our commodity and risk management expertise to expand our opportunities into consumer and industrial-based ethanol products.”

Fleischmann’s Vinegar president and CEO Ken Simril, the FVC management group and all of the company’s employees will be part of the Green Plains team, Becker said.