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Archer Daniels Extends Agreement With Japan-Based Spiber
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Archer Daniels Midland Company (ADM - Free Report) in collaboration with Japan-based biomaterials company Spiber recently agreed to expand the production of the latter’s innovative Brewed Protein polymers. Archer Daniels’ proficiency in large-scale fermentation technologies, engineering and extensive agricultural supply chain, when combined with Spiber’s cutting-edge structural protein-fermentation technology, will most likely make the deal fruitful.
We note that the latest extension of this collaboration comes after the successful completion of the first phase. Last year, both entities started a long-term collaboration under which Archer Daniels offered technical, engineering and process support with the access to production resources. This was supposed to build up and test Spiber’s process at scale. Apparently, this was executed successfully, followed by the latest expansion of the deal.
Under the latest collaboration extension, Archer Daniels will produce Brewed Protein in the United States with the use of plant-based dextrose as a feedstock. This will be then shipped to Spiber’s downstream facilities. Here, these will be processed into a range of materials, mainly fibers, for using in various applications and consumer products including apparel, high-performance foams and lightweight auto parts, among others. Notably, the Brewed Protein polymers are very important for developing plant-based and sustainable alternative materials.
We believe the latest agreement to efficiently cater to the burgeoning consumers’ demand for sustainable products. In addition, this begins a new phase in the commercialization of Spiber’s materials, with a wider availability of Brewed Protein at suitable costs. The new agreement, coupled with Archer Daniels’ other partnerships, efficient origination network, end-to-end capabilities, fermentation skills and other strategic efforts, poise the company well for growth.
Meanwhile, Archer Daniels’ significant progress on its three strategic pillars, namely optimize, drive and grow, looks encouraging. Moreover, the company’s Readiness goals of driving the business, standardizing functions and enriching consumers’ experience bode well. Further, the company is gaining from strength in the Nutrition segment on gains in the Human and Animal Nutrition units. Driven by these strengths, the Zacks Rank #2 (Buy) stock has gained 21.9% in the past three months and outperformed the industry’s 15.5% rally.
United Natural Foods (UNFI - Free Report) , also a Zacks Rank #1 stock, has delivered an average earnings surprise of 4.8% in the trailing four quarters.
Hain Celestial (HAIN - Free Report) has delivered an average earnings surprise of 15.7% in the past four quarters. It currently carries a Zacks Rank #2.
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Archer Daniels Extends Agreement With Japan-Based Spiber
Archer Daniels Midland Company (ADM - Free Report) in collaboration with Japan-based biomaterials company Spiber recently agreed to expand the production of the latter’s innovative Brewed Protein polymers. Archer Daniels’ proficiency in large-scale fermentation technologies, engineering and extensive agricultural supply chain, when combined with Spiber’s cutting-edge structural protein-fermentation technology, will most likely make the deal fruitful.
We note that the latest extension of this collaboration comes after the successful completion of the first phase. Last year, both entities started a long-term collaboration under which Archer Daniels offered technical, engineering and process support with the access to production resources. This was supposed to build up and test Spiber’s process at scale. Apparently, this was executed successfully, followed by the latest expansion of the deal.
Under the latest collaboration extension, Archer Daniels will produce Brewed Protein in the United States with the use of plant-based dextrose as a feedstock. This will be then shipped to Spiber’s downstream facilities. Here, these will be processed into a range of materials, mainly fibers, for using in various applications and consumer products including apparel, high-performance foams and lightweight auto parts, among others. Notably, the Brewed Protein polymers are very important for developing plant-based and sustainable alternative materials.
We believe the latest agreement to efficiently cater to the burgeoning consumers’ demand for sustainable products. In addition, this begins a new phase in the commercialization of Spiber’s materials, with a wider availability of Brewed Protein at suitable costs. The new agreement, coupled with Archer Daniels’ other partnerships, efficient origination network, end-to-end capabilities, fermentation skills and other strategic efforts, poise the company well for growth.
Meanwhile, Archer Daniels’ significant progress on its three strategic pillars, namely optimize, drive and grow, looks encouraging. Moreover, the company’s Readiness goals of driving the business, standardizing functions and enriching consumers’ experience bode well. Further, the company is gaining from strength in the Nutrition segment on gains in the Human and Animal Nutrition units. Driven by these strengths, the Zacks Rank #2 (Buy) stock has gained 21.9% in the past three months and outperformed the industry’s 15.5% rally.
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Flowers Foods (FLO - Free Report) has an average earnings surprise of 8.2% in the past four quarters. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
United Natural Foods (UNFI - Free Report) , also a Zacks Rank #1 stock, has delivered an average earnings surprise of 4.8% in the trailing four quarters.
Hain Celestial (HAIN - Free Report) has delivered an average earnings surprise of 15.7% in the past four quarters. It currently carries a Zacks Rank #2.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>