Akralos to deliver advanced feed and nutrition solutions

Akralos Animal Nutrition, a new North American animal feed and nutrition company, officially launched Feb. 1. Formed through a joint venture between global agriculture leaders ADM and Alltech, Akralos combines Alltech’s U.S.-based Hubbard Feeds and Canada-based Masterfeeds businesses with ADM’s U.S. feed operations.

Operating an extensive network of more than 40 feed mills across North America and supported by more than 1,400 team members, Akralos delivers reliable, high-quality feeds, minerals and supplements through its trusted brands, backed by advanced nutrition expertise, leading-edge science and personalized service.

We talk with Alltech President and CEO Dr. Mark Lyons to learn more about the longstanding relationship between the two companies, the unified organization's mission and what's ahead.

Transcript

Acrolos Joint Venture Announced

SPEAKER_02 0:06

There's a new player in the North American feed and nutrition industry. AcroLost Animal Nutrition was formed February 1st through a joint venture between global agriculture leaders of Altec and ADM. It brings together Alltech's U.S. based hubberd feeds and Canada-based master feed businesses with ADM's U.S. feed operations. Welcome to Feedstuffs in Focus, our podcast taking a look at the big issues affecting the livestock, poultry, grain, and animal feed industries. I'm your host, Sarah Mirhead. Joining us to discuss what's ahead with Acrolos Animal Nutrition is Dr. Mark Lyons, president and CEO of AllTech.

Why The Deal Came Together Now

Naming Acrolos And Brand Strategy

SPEAKER_00 0:48

The last few months there's been a lot of work going on because when you when you're in these conversations, it's stuck to a really relatively small group, you know, seeing if the idea has validity, if it's going to work for both parties, and then, you know, being the fact that we're doing this with a public company is quite different. So we had to have this period of time then to open things up and really bring a lot more of the key individuals that will be involved in the project going forward and into the project and go through all the regulatory approvals, etc. So now we're at the point where we've been able to close the deal and um are moving ahead and very exciting. Um we also have to come up with a name. Uh so Acrolos is the name of the business. Um you will see a lot of the familiar brands. So Hubbard in the US and Masterfeeds in Canada will be the brands that people will see. Uh, but Acrolos will be the name of the business. And um and I think what's really exciting about this is it really is bringing the best of both sides to bear. Both businesses very focused on how do we think about nutrition, how do we think about feed production in general in a different way, how do we think about more technology really working for the farmer, and and I think that direction of flight is uh is a very positive one uh for both sides. And so this was something that was not a new conversation, I believe. There were even discussions between AB ADM and Ridley Hubbard before Altec even acquired Ridley. So um, you know, sometimes things just have to find the right moment, and I think this was the right time. So um very uh positive about it. We have a number of former ADM colleagues within the Altec team. I think that transition has really helped because you've got people on both sides who are going to be working day in and day out together, already know each other, already have relationships and are really excited about the future of this joint venture.

SPEAKER_02 2:37

So, what went into the name? Is there somehow some things that made it uh made you come to that?

Customer Benefits And Culture Fit

SPEAKER_00 2:43

Yeah, it was it's it's always um something that's fraught. Uh, you know, I think any marketeer will tell you that coming up with names is probably not their favorite thing to do. Uh but you know, the idea of this was really advancing nutrition, being an advanced partner with nutrition, and there's several elements of the story that come into that, um, a Greek background uh in terms of the name, and those are things that I think um you know the team is gonna build their marketing plan around, and I'm pretty excited to see what they'll come up with. The whole concept of here uh of this is really using our expertise, you know, being a better partner to the industry, and I think the positioning of both businesses, the expertise of both businesses, um, I think are is is gonna put us in a really strong position going forward. The the footprint of the business is is um is quite beneficial, I think, overall. Um, there's certain sectors of of the market that probably for ADM we're now you know in new areas, same for for our side, and overall, um, you know, to be one of the leading businesses in the North America market, I think is going to give a lot of strength to both parties.

SPEAKER_02 3:47

What's it gonna mean for your customers?

Footprint, Facilities, And Brands

SPEAKER_00 3:49

I think this really brings them a better footprint, more flexibility, and I the goal, and it was interesting when I talked to Brian Geyer, who will be the CEO of the business, you know, was very much that question what is it that we're going to bring, what's the benefit, uh, and who do we need to talk to? And immediately said our customers and our colleagues. And I think that's been the direction. Um, the culture on both sides is very similar. So I think that's beneficial, and a lot of that that is very focused on on customer centricity and making it easier to do business with us. Um the it's interesting too, I think even when you get into the the nuts and bolts, some of the systems we've used, um, you know, we're able to now look and see, okay, actually your system's better here, customers like this better, and there's been a lot of, over the last three months, a lot of learning from each other. And I think that's gonna be something that that the customers will see uh play out in the deal.

SPEAKER_02 4:43

What about overlap of facilities? Are you gonna have a lot to deal with there?

Leadership Hubs And HQ In Kentucky

Asia Tour Highlights And Investments

SPEAKER_00 4:47

There's not there's not a huge overlap. I mean, uh what I what excited me about the deal was actually getting into some new geographies, um some areas that we weren't yet present in, and um and I think this is a good way to move ahead with that. Um you know, it's something that the teams will look at going forward, especially thinking about which brands. You know, we we've had obviously some brands that are probably in competition, um, they'll look at those and see which ones fit the market more effectively. Naturally, one business was stronger in some species areas or geographies than others. And we also want to, of course, have bring in those customers and bring in the dealers uh as part of the conversation. So that'll be the next phase, I think, the next few months. I'm gonna be hitting the road. So typical altic fashion, um, next two weeks are out with out to see customers, to see dealers, to see the plants, uh connect with the with the with the team, uh, and then very excited that in March we're gonna invite them to Kentucky uh and have have a visit there. Kentucky, our headquarters in Kentucky, will actually be the headquarters of the joint venture, which is also different because we had basically got Mankato as our lead office. It will continue to be an important office. And Quincy, of course, was the head for ADM, also will be an important uh location. But I think for the leadership being very close to what we're doing, being you know a very quick flight down from Chicago, um, this will this will be quite beneficial for everybody.

SPEAKER_02 6:11

Talking about hitting hitting the road, you just got back from uh a tour around Asia. Talk to us about what you saw, what you experienced there.

Protein Demand, GLP-1, And Diet Shifts

SPEAKER_00 6:18

Yeah, I had the Asian managers over and we had a lot going on. I was meant to go uh to Thailand for an important um industry event in September last year, and because of the joint venture deal, I couldn't go, and I was meant to get to China, I was getting to India, and so um, you know, we like to joke in Altec that one of the most important things in a company like ours is to manage your boss. I don't know if I ever was very successful managing mine, uh, but I don't know if anybody was. But um I was with the the Asian managers that came to Europe um the last two years to participate in our European end-of-year meeting, and that's basically their gripe was Mark, you need to get over, and so no way to start the year than to complete uh some promises. We have a new office, uh sorry, a new laboratory that we were able to open in Pune in India. Uh so fantastic to be with them. We also opened a bolus plant, which is a new area. And what was really exciting about both of these is these are firsts in Altec. Altech selling products in over 140 countries. We have our own representation in 90 of those, and to have two things happen in a market uh like like India that are firsts, I think is pretty exciting. The lab is focused on nutritional services for medium and small farmers. Now, you say that in the US, that probably is actually a reasonable size farm from a global perspective, but these could be individuals that could have between two cows up to maybe 20, and we're able to try and give them some of the nutritional capabilities and insights that larger enterprises would have. The program is basically operating as a nonprofit, um, and so it's a really novel idea that the team came up with. And so that was a great, that was a great uh visit there. Got through Thailand, uh, saw the new um CP Innovation Lab, very impressed. Um we have a laboratory within their laboratory, and that was really absolutely state-of-the-art, integrated into their other businesses. They have a mobile phone company, a telecommunications business, they have a thousand startups in this building. Um so very, very innovative. And again, one of those things that always reminds you when you go to Asia, just how cutting edge and the investments they're putting in and how central agribusiness is to many of these economies. And um, and then it was over to Malaysia, Vietnam, and Japan. So I think one of the big themes was you know them managing uh probably a lot of the geopolitical changes, um, some of some of the repositioning, you know, India is an interesting example of being kind of friends with everybody but not aligned to anyone, and uh and perhaps I think a little bit of a sense of confidence within some of those economies that they can take those steps. I would also say a topic that is very timely here in the U.S., we've heard a lot about the GLP1 drugs, the impact that those are having on grocery bills, and I was surprised to hear that same focus on protein was a topic that came up in many of the different countries. Um, something you wouldn't really think about.

SPEAKER_02 9:14

Is it also because of GLP1 in those countries, or is there other factors at play?

India’s Protein Gap And Dairy Strength

SPEAKER_00 9:18

I think there's an overall sense, because I would say the GLP1 push for protein is is one of many trends we're seeing even over here. There's a big focus on people's overall health, um, thinking about their diets maybe in different ways. I guess the the GLP1 piece obviously puts it you know in a totally different position because that means you are making dietary changes 100%. It is affecting the way you you you eat and the way you think about food and and drink. Uh, and so that's a big factor. But I don't think that's there yet, but as these drugs start to become more generic, we're gonna see that change. So I think this was more of a trend that was linked more to younger people, a lot of people going to the gym, um, maybe the uh the talk democratization of the internet, you know, everyone seeing what everyone else is doing in the world, and uh and those trends really picking up. But it was just interesting to have somebody in India talking about uh a protein deficit. We normally think about, you know, are these trends of consumption per capita gonna go up? Uh and this was almost looking at this on, you know, flipping that on its head, saying this is how much more protein India needs, and and how are we gonna fill that gap? And it's gonna be eggs, it's gonna be uh broiler, meat maybe a little bit of aquaculture, and it's certainly gonna be dairy. You know, dairy consumption in India is just behind where where Brazil is. Uh but when you look at it in comparison for poultry, it's way, way down. So interesting to see such a strong dairy sector, very innovative, um, and and a lot of a lot of new things taking place there.

SPEAKER_02 10:44

A lot of good news for animal agriculture.

Reframing Meat As High-Quality Protein

SPEAKER_00 10:46

If we take it, so you know, the opportunity of a lifetime and only in the lifetime of the opportunity is is a saying we use a lot. And I lament that when I walk through grocery stores, I'm looking at a box of cereal that tells me how much protein it has, but I pick up, you know, I go into the meat, milk, and egg section, maybe some milk will tell me. Uh, but certainly when I'm picking up uh a steak, it's not telling me this is the most natural, uh no-processed um protein source, and our industry needs to get behind this. I think that's probably one of my cries for this year. We had our global launch, and that was something I brought up with the team. You need to have at least one conversation with the key partner you see and ask them that question. Why are we not screaming this from the rooftops that this is the way we should be eating? We do have a new food pyramid. Um, and I think taking the politics out of it, I think a lot of people who are involved in sports, who are involved involved in nutrition, have often said less processed food, less sugar, um, and more vegetables for sure, and good quality protein needs to be a big part of this. And if you actually try and follow their guidance and try and consume that much protein, it's not easy. And if animal protein isn't part of that story, uh it's very, very difficult. So I think that's a it's a big opportunity for us, but we need to take it.

SPEAKER_02 12:03

Yeah, great point. You don't see some of those things front and center when you're picking up that steak or that gallon of milk, you can, but you can go get it on your your enhanced hybrid.

SPEAKER_00 12:12

Why don't we call it not the meat section, but the the high quality protein section? Right, exactly. The natural protein section.

SPEAKER_02 12:18

I mean, there's ways that we can go push that through. What else is going on at Alltech? Anything else we should know about?

Alltech Growth, Team, And Innovation

SPEAKER_00 12:24

Well, it's been uh, you know, I think 2025 was a really strong year for us. We had double-digit growth, that was kind of one of the things I put out uh for the markets. Um about I'd say about half of our markets achieved that, which was phenomenal. Um in many, many of those markets being very, very strong. I think that there's a real um alliance I've I've really enjoyed watching the team. Um you know, it's one thing that people work hard, but when they really enjoy what they're doing and who they're working with, I think that's been a big theme. Um and so uh we were just using the World Cup theme, having the World Cup in the US and Canada, Mexico as our global launch theme, and we came across a video. And I don't know if you ever saw this video, but 2002 I was with my father in Japan. Um, Germany played Ireland, Germany, of course, is winning 94th minute, Ireland gets a goal, and we tie, and we felt like we won the World Cup. It was only a group stage game, but we were, and of course, we go out running out of the stadium, everyone's excited, and of course, who stops in front of the camera? And it was the BBC, and there's this great quote of him saying, We lost our best player because it was the captain of the team, Roy Keane was sent home early, had a bit of a fight with his manager, and he said, But the team rose up, they they pulled together, and and I feel like that's a little bit what's happening in Altec. We lost our best player. Uh, but over the last few years, I think the team has come together and I think they've done an incredible job. There's been new people coming in, uh, there's been uh I think a lot of talents coming up. I mentioned Asia. We have total Asian management in all tech um top management for the first time ever as of 2025. You know, those steps, I look at the number of um of women in senior positions in all tech, our many MBAs, more, it's our our advanced management training program, it's more women than men now coming in each year. I think a lot of those things that that you probably want to do, but you can't get them done right away. Over the period of three, five years, you start to see those things things kick in. And I think that's why we're seeing a lot of new routes of growth, and I would say probably more innovation and innovation. You know, you see a product coming out, you see a presentation by the innovation team, and you say this is gonna work. I feel much more confident about those things right now than possibly I did at other times in the history of the company. So um really exciting moment, good moment that we're in.

SPEAKER_02 14:47

That's terrific. It's always about moving forward forward as a team.

SPEAKER_00 14:51

Yeah, yeah, for sure. And so we um because of the the joint venture, lots of other things going on, we kicked the one a year uh out, so 2027. But I'm also really excited about that, having a little bit more time to fine-tune that program and to welcome the world to to Kentucky in 2027.

Looking Ahead To 2027 And Education

SPEAKER_02 15:08

Yeah, that's coming back to Kentucky. Yes, yep. Very good. Look forward to that.

SPEAKER_00 15:12

We do, I I would be very amiss not to mention World Without Cows. So one of the big things for this year also was to be able to really focus on that, not only get the film out to the public, uh, but also to start an education program. So there's an educational element coming to World Without Cows. It's also something that we're looking for people's support on. Um, you know, Altic has put the backing, the talent, the ingenuity, I think, behind it. The media team has done a great job, but we're also looking for people to help us to get that word out, to link us with the right people we need to be talking to. And I think the education piece is going to be really exciting to build that out, and that'll be that'll be coming in the fall.

SPEAKER_02 15:49

Something else to watch for, I'm excited. Thank you very much. Exactly. Thank you so much, Mark.

SPEAKER_00 15:52

Thank you.

SPEAKER_02 31:18

Our thanks to Dr. Mark Lions for joining us here today. If you would like to hear more conversations on some of the big issues of the tree, and the free defense trees, some of the comments of the