Ingredients identified by GlobalData’s AI Palette platform are already appearing in new product innovation, tempting consumers with niche flavours, health benefits, and premium offerings.
GlobalData’s AI Palette innovation and consumer insights platform has analysed the data from thousands of flavours and ingredients, pinpointing six that are set to drive new product development in the alcoholic beverages industry in 2025.
Leveraging the world’s largest consumer data lake, with a staggering 61 billion global data points collected in real-time from social media, e-commerce, and foodservice menus, the AI platform delivers powerful insights into emerging flavours and ingredients, as well as category opportunities.
Alice Popple-Connelly, Consumer Analyst at GlobalData, comments: “The alcoholic drinks sector is currently navigating significant challenges, including a global trend toward reduced alcohol consumption driven by health concerns, fierce competition from alternative beverage categories, and the ongoing impact of universal tariffs on U.S. imports.
“Tempting drinkers with cutting edge innovation or core brand enhancements based upon new flavours and ingredients is essential for category growth. For example, ingredient innovation will help brewers maintain their “cross-generational appeal”, especially with Gen Z consumers, and compete with other beverage categories in key consumption occasions such as on-premise and at-home.”
GlobalData’s latest report ‘Emerging Flavours & Ingredients in Alcoholic Beverages’, uses findings from AI Palette’s Foresight Engine, to identify one standout ingredient for each of six key markets analysed, that is suitable for alcoholic beverages innovation. These include, White Pepper in India, Tahini in the UK, and Valencia Orange in the US.
Each of the six selected ingredients is classified as having “high growth” and “high engagement” based upon consumers interactions with them across social media, retail and restaurant industry sites over recent years – as measured during the review period in March 2025. The report places each ingredient into an ingredient family, provides suggestions on ingredient pairings, and reviews how brands can leverage these ingredients in alcoholic drinks and capitalise on their benefits.
The six emerging flavours and ingredients identified in the report:
Tahini
Is a creamy paste with a slightly bitter undertone made from ground sesame seeds. Common in Middle Eastern, Mediterranean, and North African cuisines. One promising opportunity for tahini lies in the rapidly growing UK stout segment, which is expected to achieve a 14.2 % CAGR from 2020 to 2029, according to GlobalData. Rogue Ales & Spirits has innovatively incorporated the flavours of tahini into ist 2022 Santa’s Private Reserve stout, in collaboration with Honey Mama’s.
Is a plant known for its red calyces, which are often used in herbal teas, health drinks, tonics, jams, jellies, yoghurt, lozenges and candies. In recent years, roselle juice has become more popular in functional drinks aimed at hydration, digestion and heart health. It is more widely consumed in the Middle East & Africa as well as the Asia & Australasian markets. In the latter, it’s ‘floral’ flavour ranks among the top five flavours within spirits, making it the highest-ranking region for this flavour in the alcoholic beverages sector, according to GlobalData’s Q1 2024 consumer survey.
Flavour Profile: Floral, Fruity, Herbal
Ingredient Pairings: Lime, Lemon, Ginger
Ingredient Benefits: Health functionality, Younger generation appeal, Attractive colour
Valencia Orange
Is a summer variety of Citrus sinensis, which includes other cultivars such as Cara Cara, blood and navel oranges. The inclusion of Valencia oranges in alcoholic beverages, is both appealing and growing in demand in the United States, where consumers express a preference for sweet flavours in wines, beer and cider.
Flavour Profile: Tangy, Sweet, Bitter
Ingredient Pairings: Cranberry, Honey, Vanilla
Ingredient Benefits: Nutritional benefits, Regional authenticity, Versatility with other flavours
Olive (Olea Europaea)
Is a small fruit native to the Mediterranean region, prized for its rich flavour and versatility. The inclusion of olives as in ingredient and flavour in alcoholic beverages is up and coming due to its unique taste profile, with South Africa emerging as a key market, reflecting growing consumer demand for natural and healthy products.
Flavour Profile: Bitter, Nutty, Earthy
Ingredient Pairings: Rosemary, Orange, Lemon
Ingredient Benefits: Unique and distinct flavour, Rich in healthy fats, Digestive health
White Pepper
Often used as a conceptual flavour descriptor rather than a physical ingredient in alcoholic beverages, white pepper is widely utilised in culinary traditions worldwide. The appeal of flavours that white pepper can facilitate in alcohol, such as spicy and woody, are appealing to consumers and demand for them is high in the MENA and Asia pacific regions.
Flavour Profile: Earthy, Fiery, Woody
Ingredient Pairings: Peach, Caramel, Agave
Ingredient Benefits: Subtle and versatile colour, Intensify other flavours, Anti-inflammatory properties
Finger Lime
Finger lime (Citrus Australasica) is a unique citrus fruit native to the rainforests of eastern Australia, known for its vibrant flavour and distinctive texture. Citrus flavours already holds a strong position in the alcoholic beverage market as an ingredient in spirits such as gin and vodka, making finger lime a promising option in high consuming spirits markets like the UK, and in Australasia where the fruit is produced.
Popple-Connelly adds: “GlobalData’s AI Palette innovation and consumer insights platform provides key global insights into which ingredients and flavours are emerging in real time, serving as a powerful foundation for brand innovation. Leveraging these emerging ingredients and conceptual flavours allow alcoholic drink brands to target novel, experiential and health-conscious consumers thereby gaining a competitive edge. Each ingredient identified by the platform presents a unique opportunity for innovation across various alcoholic drink categories, empowering brands to confidently explore new possibilities.”
Symrise AG, a leading global supplier of fragrances and flavours, cosmetic and active ingredients as well as functional products, continued to significantly increase its sales and earnings growth in the 2024 financial year despite challenging economic conditions. Symrise confirms its mid-term growth and profitability targets until 2028.
The Symrise Group generated sales of EUR 4,999 million, an increase of 5.7 % in the reporting currency. Excluding portfolio and currency effects, organic sales growth amounted to 8.7 %. Earnings before interest, taxes, depreciation and amortisation (EBITDA) amounted to EUR 1,033 million, up EUR 130 million from the previous year’s figure of EUR 903 million1. This corresponds to a margin of 20.7 % (2023: 19.1 %1).
Sales development in the regions
Business in the Europe, Africa, Middle East (EAME) region performed well, with sales growing organically by 10.9 %. Sales in North America were positively impacted by the resumption of production at the Colonel Island site. After a decline in sales in the previous year, organic sales growth of 1.5 % was achieved in 2024. The Asia/Pacific region achieved organic sales growth of 9.3 % year-on-year. Sales in Latin America were very dynamic, with organic growth of 15.2 %.
Earnings performance and net income
An important driver of the very positive development of earnings was the profitable sales growth and the execution of the efficiency program. The gross margin reached 39.3 % in 2024, an increase of 2.5 percentage points versus the previous year (2023: 36.8 %2).
Earnings before interest, taxes, depreciation and amortization (EBITDA) grew to EUR 1,033 million, an increase of EUR 130 million versus the previous year’s figure of EUR 903 million . This corresponds to a margin of 20.7 % (2023: 19.1 %2).
Net income attributable to shareholders of Symrise AG amounted to EUR 478 million and was EUR 138 million higher than in the previous year (2023: EUR 340 million). Earnings per share amounted to EUR 3.42 and were EUR 0.98 above the previous year’s figure of EUR 2.44.
Cash flow, net debt, and equity ratio
Operating cash flow was significantly higher than in the previous year and amounted to EUR 895 million (2023: EUR 720 million). The operating cash flow ratio as a percentage of sales was 17.9 %.
Business free cash flow, which is an important internal performance indicator consisting of EBITDA, capital expenditures (including cash effects from leasing) and changes in working capital, increased significantly to EUR 680 million in the financial year (2023: EUR 553 million2). The business free cash flow ratio improved to 13.6 % (2023: 11.7 %2) of sales.
Net debt decreased by EUR 330 million to EUR 1,836 million compared with the reporting date of December 31, 2023. The ratio of net debt including lease liabilities to EBITDA was thus 1.8. Including pension and lease liabilities, net debt amounted to EUR 2,343 million, corresponding to a ratio of net debt (including lease liabilities and provisions for pensions and similar obligations) to EBITDA of 2.3.
The equity ratio of 48.3 % was higher than in the previous year (2023: 47.0 %), a very solid basis for continuing to grow the business in the long term.
Segment Taste, Nutrition & Health
The Taste, Nutrition & Health segment achieved organic sales growth of 7.8 %. Taking into account portfolio and exchange rate effects, the segment’s sales amounted to EUR 3,091 million in reported currency, an increase of 3.8 %. The negative portfolio effect from the sale of the beverage trading business in the UK in the Food & Beverage division amounted to around EUR 38 million.
In Food & Beverage the application areas for savory products and beverages developed very well and achieved double-digit organic growth. In particular, the EAME (Europe, Africa, Middle East) and Asia/Pacific regions achieved high growth rates. The Naturals and Sweet application areas achieved low single-digit percentage growth with strongest growth in the EAME and North America regions.
The Pet Food business achieved single-digit organic growth. Sales development was particularly dynamic in the Latin America and Asia/Pacific regions, including China, with double-digit organic growth. In EAME, Turkey, Belgium and Spain in particular showed high growth.
The sales development of the Aqua Feed business unit recorded declining organic growth in the financial year. As part of the further portfolio streamlining with a focus on high-margin growth areas, Symrise intends to sell the business in Costa Rica and Ecuador.
EBITDA in the Taste, Nutrition & Health segment amounted to EUR 686 million in the reporting year, up on the prior-year figure (2023: EUR 627 million3). The increase is mainly due to profitable sales growth and an increased efficiency. The EBITDA margin of 22.2 % was significantly above the previous year’s level (2023: 21.0 %3).
Confirmation of long-term growth and profitability targets
Symrise has confirmed its growth and profitability targets for 2025. The Group continues to expect to grow faster than the relevant market. The projected long-term growth of the relevant market is about 3 % to 4 % globally. The Group’s long-term growth expectation of 5 % to 7 % (CAGR), which is also expected to be achieved in 2025, remains unchanged.
The Group is aiming for an EBITDA margin of around 21 % for 2025, In the medium term, a range of 21 % to 23 % is targeted. For the Business Free Cashflow, a ratio in relation to sales of around 14 % is targeted in 2025.
1Attributable to shareholders of Symrise AG 2Undiluted 3Including lease obligations
Explore the latest global flavour trends of 2025, including mega trends and shifts in lifestyle
Innova Market Insights has been a specialist in consumer-packaged goods trends for 30 years. The company now uses an AI-enhanced platform to analyse insights and observations and generate reports like its report on global flavour trends. Innova’s 360 perspective on insights considers many facets of CPG trends, including consumers, categories, packaging, flavours, ingredients, and products. The company takes a top-down and bottom-up approach to identify trends and drivers, including flavour trends. Top-down factors include megatrends and shifts in lifestyle and attitudes. Bottom-up factors incorporate insights from global trend-spotters, as well as category trends. This comprehensive collection of intelligence can be synthesised into reports such as Innova’s Top Trends in Flavours for 2025.
Global flavour trend #1 – Sensory Therapy
Global flavour trends show that today’s world is highly uncertain, and consumers feel the stress. They look for various paths to mental and emotional wellness, including flavour experiences, that can be uplifting or calming. In fact, consumers participating in global consumer flavour trends research say that the most important feature of flavours is that they can enhance mood. Innova describes sensory therapy as leading to euphoric wellness. Flavour trends indicate that manufacturers offer flavour choices to meet consumers’ emotional needs. Flavours can be cheerful and happy, energised, healthy, or relaxed and calm. Familiar flavours and comforting flavours most impact consumer food and beverage choices, with coffee flavour and brown flavours as favourites, especially paired with products that have a creamy or smooth texture.
Global flavour trend #2 – Authentic & Rooted
Authentic & Rooted is Innova’s #2 global flavour trend for 2025. In global consumer trends research, consumers say that they look for authenticity, connection with others, and comfort through real experiences that are rooted in culture. In fact, nearly half of the consumers researched globally say that honoring food traditions with food choices that reflect their heritage is a very to extremely important factor in their diet. Participants in a global consumer trends research report want to see products on supermarket shelves that reflect old and traditional recipes. Furthermore, timeless traditional flavours are nostalgic. A world of flavours is available in all types of products, from ready meals to beverages, snacks, and coffees.
Global flavour trend #3 – Imaginative Taste Adventures
Innova’s #3 global flavour trend for 2025 – Imaginative Taste Adventures – describes consumer pursuit of experiences with flavour adventures and unique flavour combinations. Taste discoveries provide consumers with enjoyment and pleasure in food and beverages. One example of a global food trend is “swicy,” that is, sweet plus spicy. This food and beverage trend in food and beverage generates positive buzz in the form of social media mentions and sentiment trends across social media and online platforms. Taste experiences are highly important to consumers, and consumers looking for taste experiences will seek out creative flavours.
Global flavour trend #4 – Healthier Enjoyment
The #4 global flavour trend, Healthier Enjoyment, stresses the importance of combining health with flavour. By boosting the taste, texture, and healthiness of food and beverage choices, manufacturers make them more enjoyable, as well as satisfying and better for you. In a global consumer trends survey, participants noted the importance of taste and texture – after price – in food and beverage products that are nutritious. Features that improve nutrition include “light” versions that have less sugar, salt, fat, and/or calories, products that are sugar-free, and products with low or no alcohol claims. Consumers have taste expectations for sustainable products too. Consumers report that taste and texture are barriers to choosing sustainable food and beverage products, including plant-based products that they say need better taste and texture.
Global flavour trend #5 – Quality & Enrichment
Consumers globally tell Innova Market Insights that luxurious flavours feel indulgent and enhance a product’s perceived value. While price is important to consumers, the quality of a product relates to its value for money. When consumers were asked about attributes other than price that make a product a good value, premium quality was their top answer. Furthermore, consumers say that they remain brand loyal only if the products are good quality. Flavour is an important conveyor of quality, and indulgent flavours help satisfy consumer cravings.
With the launch of its trend prediction tool Symvision AI™, Symrise can deliver valuable and actionable insights for food and beverage manufacturers to develop successful innovations. By using AI and a unique data structure it anticipates trends for flavours, ingredients and claims. This helps identify promising market opportunities. The tool enables manufacturers to develop market-relevant food and beverage innovations by analysing multiple data sources and understanding how trends move across the globe and product categories.
In a rapidly changing world, getting ahead of consumer demands has become essential. As consumer preferences for food and beverages shift, manufacturers need to decode and anticipate market changes. This is crucial to create market-relevant food and beverage innovations that consumers love and that cater to their ever-changing wishes. Now, what kind of flavours, ingredients and claims do consumers exactly want? To answer this question, Symrise developed Symvision AI™, a trend prediction tool designed to predict the future of taste, nutrition and health.
“Consumer taste preferences change over time. Symvision AI™ allows us to anticipate these changes and predict trends for flavours, ingredients and claims. It enables us to deliver consumer-preferred taste, nutrition and health solutions for food and beverage innovations at the right time in the right place”, says Leif Jago, Global Marketing Manager Food & Beverage at Symrise.
Symvision AI™ – an AI-based multisource prediction tool
To achieve reliable and valid trend predictions, Symvision AI™ utilises a unique data structure, combining internal and external data sources, including historical data. The tool tracks reliable data at every relevant time point of a trend lifecycle. This ranges from early signals in social media to market and product launch data. Symrise continuously enriches the data sources with additional proprietary research data.
Analysing these data sources with advanced artificial intelligence algorithms enables Symvision AI™ to decode trends for flavours, ingredients and claims. It provides an understanding of how these trends move across the globe and product categories. In addition, the tool shows which consumer needs and emotional benefits specific taste tonalities address. This allows promising recommendations for specific product categories and markets.
“Several factors make our tool unique. It uses a proprietary multisource data structure that is processed by advanced AI such as machine and deep learning models. We will continuously improve and enrich our dynamic tool Symvision AI™ with more data points and more features. This will increase the benefits for our customers” adds Dr Dariah Lutsch, Research Manager, Global Sensory & Consumer Insights Food & Beverage at Symrise.
Enabling future-proof food and beverage innovations
All in all, the tool uses a unique approach to allow manufacturers to develop future-ready and consumer-preferred food and beverages with increased speed. At the same time, decoding the movement of trends across the globe and product categories enables the creation of innovations at the right time in a specific market. In addition, producers can address consumer need states as the tool connects taste tonalities with associated emotions. These benefits allow food and beverage manufacturers to innovate successfully with consumer-preferred taste, nutrition and health solutions.
“Symvision AI™ acts as a fantastic enabler for our business. It connects multiple sources of market and consumer data. It determines how this data is related over time and product categories with a focus on what consumers like and need most. Also, it provides understanding and prediction to guide new Symrise developments. Symvision AI™ provides a platform capability that will continuously grow and become stronger”, summarises Dr Conor Delahunty, VP Global Sensory & Consumer Insights at Symrise Food & Beverage.
Citrus flavours are beloved for their refreshing zest, versatility, and ability to invigorate the senses. Consumers are drawn to them not only for their familiar taste but also for their perceived health benefits, with rising demand for natural citrus flavours driven by the clean-label trend.
Orange continues to be one of the most widely consumed citrus flavours in the world, yet despite its popularity, the global orange oil market is facing significant supply challenges due to factors such as crop shortages, poor fruit quality, and climate-related disruptions.
As demand for natural products continues to grow, driven by widespread use in food and beverages, cosmetics, and cleaning products, orange oil prices are expected to increase over the next 3-5 years.
In response these challenges, Flavorchem, a global flavour and ingredient supplier, developed taste mod™ orange, an innovative line of orange oil replacers, offering the zesty taste of citrus at a more affordable price.
“Our sweet orange oil replacers have been applied in easy-to-use flavour forms specifically designed for beverages,” says Niki Hernandez, Senior Manager Flavour Development. “Available in extract, emulsion, and spray dry forms, it comes in both TYPE and WONF versions and meets specific regulatory requirements.”
Flavorchem’s expertly crafted sweet orange oil replacers offer the bright, refreshing flavours your products require, while ensuring consistency, cost-effectiveness, and sustainability that today’s market demands. Taste mod™ orange delivers an authentic, true-to-fruit Valencia Orange flavour, labeled as “natural flavour” and ideal for clean-label products. Perfect for a wide range of beverage applications, it provides a reliable, high-quality alternative to traditional orange oils.
IFF, a global leader in food and beverage, home and personal care, scent, and health announced that it aims to complete the renovation and expansion of its facilities in Shanghai Hongqiao Airport Business Park, Shanghai, China. The site will be fully operational by the end of August 2024. The 16,000 square-meter site, named “Shanghai Creative Center,” is IFF’s largest in Asia. The project is designed to drive the development of innovative solutions across the IFF portfolio in China and the Greater Asia market, further strengthening its global leadership in fragrances, flavours, functional ingredients, and bioscience-based portfolios.
“The Shanghai Creative Center will bring together capabilities across IFF, all in one location, enabling us to improve our delivery of end-to-end solutions for customers in Asia and around the world,” said Erik Fyrwald, IFF chief executive officer. “This was a natural next step following the opening of our Singapore Innovation Center in 2022 and reaffirms our dedication to advancing innovation in Asia.”
IFF first entered the Chinese market in 1981, becoming the fragrance and flavour industry’s first multinational to establish footprint and to set up a factory. The newly renovated site signals the importance of the Asia region to IFF, globally. Today, China is one of the most important markets for flavours and fragrances with high potential for growth. Furthermore, the region’s demand for bioscience-based products is rapidly accelerating, as consumers increasingly seek options for greater longevity and healthy lifestyles. IFF’s deep knowledge and experience in these sectors, coupled with this investment in the innovation center, positions the Company to offer differentiated products to market quickly and effectively to support its customers’ brand growth strategies in China.
Fruit Shoot is making a splash this June by entering the squash category with two flavours: Berry Galaxy (Strawberry and Blueberry) and Tropical Jungle (Orange and Mango). With squash making up nearly half of all soft drinks for kids1, Robinsons Fruit Shoot’s latest move means retailers can offer parents a refreshing alternative from a brand they already know and love.
As the number one kids’ drinks brand in the UK2, Fruit Shoot is ideally placed to expand its portfolio into squash. Already a favourite with shoppers, its core range (Orange and Apple & Blackcurrant No Added Sugar Juice Drink) is growing by + 1 %3 (vs last year) and its naturally flavoured water range, Hydro, at + 12.8 %4 (vs last year). The new squash is aimed at children aged between 3 and 8 years old and is all about taking them on a flavour adventure through eye-catching pack designs and delicious flavour combinations.
Ben Parker, Retail Commercial Director at Britvic comments, “We can see a clear demand in the kids category for larger sharing formats, so this was the perfect time to expand Fruit Shoot into a brand-new category. As a well-known and trusted brand, Fruit Shoot is well placed to leverage its strong appeal with kids5 and parents, helping retailers to drive further sales within the category.”
The squashes have already launched into Amazon and Ocado, with a wider launch set for 2025, and has an MRSP of £2.
1Kantar Usage Panel In Home & Carried Out, Britvic Defined Dilutes, Share of Total Soft Drinks, Dilutes share of Total Soft Drinks by Age (Under 10s = kids), 52we 14.04.24 2Nielsen IQ RMS, to WE 13.04.24 MAT TY, Total Coverage GB inc Discounters, Britvic Defined Kids Database, Fruit Shoot, excluding Private Label, Value Sales & CGA by NielsenIQ, 52wks to December 31st 2023, Total Coverage OOH. Fruit Shoot, Value Sales 3NielsenIQ RMS, Total Coverage GB incl discounters, Britvic Defined Kids Database, Sales Value % Chg vs last year, 12 w/e 25.05.24 4NielsenIQ RMS, Total Coverage GB incl discounters, Britvic Defined Kids Database, Sales Value % Chg vs last year, 12 w/e 25.05.24
Paul Graham, President of Americas at Döhler, is announced as FEMA’s new President. He is committed to increasing collaboration among all stakeholders and aims to champion flavour safety as well as to improve associations’ outreach efforts. With his experience within Döhler, he seeks to advance the industry.
During the FEMA Annual Leadership Conference, which took place in Charleston (SC) from April 29 to May 1, Paul Graham was appointed FEMA President. Paul brings vast experience of more than 35 years in the industry and has been an honoured member of FEMA for more than 10 years. He officially assumed his role on May 1, 2024, following his recognition by the association members and former President Laurette Rondenet.
FEMA, the Flavour and Extract Manufacturers Association of the United States, founded in 1909, is the preeminent national association of the U.S. flavour industry, dedicated to ensuring the availability of safe flavouring substances.
As President, Paul excitedly highlights, “I am deeply committed to leading FEMA through a period of evolution by creating and implementing a comprehensive strategic five-year plan. This will enhance collaboration among FEMA Committee Chairs, members, and stakeholders, while working together with IOFI (International Organisation of the Flavour Industry).”
Another central topic to Paul Graham’s agenda is advancing FEMA’s commitment to ensuring the safe and responsible use of flavourings through FEMA GRAS while fostering industry innovation. He is dedicated to improving outreach and membership engagement as well as making FEMA more accessible, strengthening programs like the FIL (Flavour Ingredient Library) and FEMA FLI (Future Leaders Initiative).
New research and inspiring wellness concepts will highlight the power of combining sustainably sourced botanicals, scientific rigour, and a deep understanding of taste to create the next generation of health and wellness experiences.
Givaudan will showcase consumer-inspired concepts such as instant drinks and gummies that feature its branded botanical ingredients at Vitafoods Europe (14–16 May 2024 in Geneva). These new concepts will demonstrate effective ways of addressing the growing demand for immune support, urinary tract health, cognition, relaxation, energy, and gut health.
Designed to ensure an optimal sensory experience and accompany consumers throughout the day, each of the concepts features solutions from Givaudan’s extensive portfolio, including health, taste, and flavours ingredients. The early morning concept presents an instant drink, providing a boost of natural caffeine with our innovative guarana extract, paired with a citrus flavour. For midday, the concept comes in a refreshing peppermint-flavoured gummy format, featuring CereboostTM Givaudan’s American ginseng that has been demonstrated to support attention and memory. Finally, the evening concept offers a relaxing experience, leveraging the power of valerian in a gummy format with a tasty black tea peach flavour.
Amandine de Santi, Ingredients Portfolio Director, Taste & Wellbeing Europe at Givaudan, said: “The nutra market is in the midst of a revolution, with a growing number of consumers seeking great-tasting food supplements supported by scientific research. Achieving a balance between efficacy and palatability is crucial. Givaudan leverages its in-depth knowledge of taste to successfully address off-notes in active botanicals using our extensive range of masking and flavouring solutions. By sharing our expertise in both taste and botanicals with our customers, we are able to co-create appealing consumer experiences that offer powerful benefits and that satisfy the desire for great taste backed by sound science.”
Reflecting its commitment to science-backed ingredients, Givaudan will unveil the results of a ground-breaking clinical study on PacranTM during the event. PacranTM is an extensively studied whole cranberry ingredient for urinary tract health. This study showcases the efficacy and reliability of PacranTM, further reinforcing Givaudan’s expertise in developing science-backed nutra solutions. Visitors can learn more about the clinical study by attending a presentation in the New Ingredients Theatre on May 14 at 3:30pm CET.
Vitafoods visitors will also be able to further explore online the science and sourcing stories behind many of these powerful botanicals on Givaudan’s new Health & Nutrition Hub, which showcases the company’s portfolio of branded ingredients. This new digital platform illustrates how natural ingredients, careful raw material selection and sustainable practices, combined with scientifically proven benefits, can help customers differentiate their end products to resonate with consumers.
Glanbia plc, the Better Nutrition company, announced that it has entered into an agreement with the shareholders of Aroma Holding Company, LLC and related entities, the owners of Flavor Producers LLC to acquire the business for an initial consideration of USD 300 million plus deferred consideration (the “Transaction”).
Transaction overview and rationale
Flavor Producers is a leading flavour platform in the US, providing flavours and extracts to the food and beverage industries, with a focus on organic and natural ingredients. Glanbia will operate Flavor Producers within its Glanbia Nutritionals (“GN”), Nutritional Solutions business (“NS” or “Nutritional Solutions”).
The Transaction is consistent with Glanbia’s strategy of acquiring complementary businesses to grow its Better Nutrition platforms. Flavor Producers significantly expands NS’s flavours offering, bringing new capabilities in the attractive and growing natural and organic flavours market which are aligned with long term consumer trends.
Transaction highlights include:
Flavor Producers is a leading independent flavours business in the US which represents a synergistic fit with the existing flavours capability of NS;
Acquiring an established platform with a 40 year plus history, a strong team and a track record of innovation;
Excellence in R&D and proprietary ingredients with best-in-class formulation capabilities. Extensive flavour library and vertical integration into flavour extracts, facilitating clean label solutions;
Financially attractive margin and growth profile which will improve business mix within NS; and
Consistent with Glanbia’s balanced capital allocation framework and retaining a strong financial position post Transaction.
Transaction consideration, financing and closing
The initial consideration is USD 300 million with an additional deferred payment of up to USD 55 million, conditional on performance in 2024. Final consideration will also be impacted by the value of actual working capital and customary completion accounts at closing. The Transaction will be financed by Glanbia’s existing banking facilities and cash. Glanbia has a strong balance sheet with net debt of USD 248.7million at the end of FY 2023, a net debt to adjusted EBITDA ratio of 0.5 times and USD 1.3 billion of committed debt facilities.
It is anticipated that the Transaction will close in the first half of FY 2024 subject to customary closing conditions and agreed completion accounts.
The Transaction is expected to be marginally accretive to Glanbia’s adjusted earnings per share in its first full year of ownership.
The Company’s current EUR 100 million buyback programme announced on 28 February 2024 is ongoing and is unaffected by this Transaction.
About Flavor Producers Flavor Producers was founded in 1981 as a family business in Valencia, California. They pioneered the development of natural and organic flavours by sourcing raw materials from nature. Plant-based flavour and extract creation is the Company’s specialty, with unique technologies that deliver transparently delicious taste to food and beverages. Today, Flavor Producers is a leading developer and manufacturer of natural and organic flavours in North America. Flavor Producers serves leading FMCG companies as well as high growth and emerging consumer brands. In the 12 months to February 2024, Flavor Producers delivered USD 86.1 million net sales and adjusted EBITDA (before non-recurring costs) of USD 19.7 million. The gross assets of Flavor Producers as at February 2024 were USD 321 million.
Artificial intelligence is revolutionising the food and beverage industry by translating abstract flavour concepts into tangible realities. Recent advancements in Japan showcase how brands leverage AI to infuse ideas and emotions into product development, creating unique culinary experiences. This innovation not only enhances consumer engagement but also underscores AI’s role in driving sustainable food production and aligning with consumer preferences. However, building trust in AI-assisted choices remains imperative for ongoing industry transformation, says GlobalData, a leading data and analytics company.
Earlier this year, Japanese tech giant NEC Corporation, in partnership with Kimuraya Sohonten Co. and Abema TV, pioneered an innovative approach to food creation, leveraging AI technology to craft bread flavours aimed at captivating new demographics, particularly younger consumers.
By analysing cultural cues from TV and social media, they have created innovative offerings like “First Date” and “Mutual Love,” infusing emotions into culinary experiences. This pioneering endeavor showcases AI’s potential to revolutionise food innovation by bridging the gap between sensory and emotional realms.
Katrina Diamonon, Principal Consumer Analyst at GlobalData, comments: “More brands are taking greater liberties with the concept of flavour, by using intangible elements such as ideas, experiences, and moods to describe flavour. This recent example from Japan takes the consumption experience beyond the sensorial and into the emotional realm. We have already seen this kind of innovation from more progressive beverage companies, but its expansion into bakery suggests that a wider array of food and drink brands will explore more whimsical and abstract flavours.
“It also underscores the wider impact of AI technology on consumer goods innovation. Not only is it making food production smarter and more sustainable; it is also changing how food products are conceived and designed, aligning them even more closely with consumer preferences. Significantly, we are already seeing a degree of confidence in AI-assisted food and drink choices; however, consumer trust in such technologies needs to continue to grow.”
A survey* conducted by GlobalData found that one third (33 %) of global consumers would be very or quite likely to trust recommendations from a virtual assistant (e.g. using AI) to buy food and drinks.
Diamonon concludes: “The notion of translating human emotions into tangible flavours may seem far-fetched but is certainly not beyond the realm of possibility for AI, which has only scratched the surface in terms of its ability to use predictive analytics to transform ideas into reality.
“As more brands make the move into the metaverse, flavour has the potential to become a more abstract term as physical and digital worlds merge. AI will prove invaluable in helping brands develop flavours and scents that bring an emotion to life.”
*GlobalData 2023 Q4 Consumer Survey – Global, published in December 2023, sample size – 21,000
FDL, with USD 120 million in projected 2023 sales, offers significant innovation capabilities along with strong presence in USD 900 billion European foodservice channel
ADM, a global leader in human and animal nutrition, announced that it has reached an agreement to acquire UK-based FDL, a leading developer and producer of premium flavour and functional ingredient systems.
FDL, with projected 2023 sales of approximately USD 120 million, operates three production facilities and two customer innovation centers, all in the United Kingdom. The company’s approximately 235 colleagues, which include about 40 dedicated innovation specialists, have created more than 10,000 proprietary flavour formulations that enable accelerated speed to market. FDL’s customers span channels, and include a significant presence in the USD 900 billion European foodservice segment.
ADM is continuing to add to its broad portfolio of flavour ingredients and solutions as it builds a global leader in nutrition. Since acquiring WILD Flavors in 2014, ADM has added multiple new offerings to its flavours portfolio through acquisitions, including dairy via yesterday’s announcement of Revela Foods; savory via Eatem Foods; citrus via Florida Chemical Company and Erich Ziegler Citrus; and vanilla via Rodelle. The company has also expanded its flavours capabilities globally with acquisitions like Flavor Infusion South America; organic investments like its Pinghu, China, flavour production facility and the expansion of its Berlin flavour facility; and its growing network of innovation centers spanning Europe, Asia, Latin America and North America.
The acquisition is subject to customary closing conditions. ADM intends to complete the transaction by end of January 2024.
SET Flavors™ by Symrise help create unique taste, nutrition, and health solutions. They use superior separation technologies to access and enrich the characteristics from food essentials or valuable product side streams. The Selective Enrichment Technologies of the SET Flavors™ brand combine efficient processes and advanced technologies that enable Symrise and its partners to capture nature´s complexity, creating both signature and authentic taste profiles.
Consumers today place great focus on sustainability. Caring for planetary health is driving their consumption habits and demands, especially in food and beverages. Avoiding food waste with concepts like ‘reuse, reduce, recycle or re-engineer’ form the dominating trends. At the same time, taste continues to drive their preferences. Important buying criteria for food and beverages include signature, rich taste as well as authentic, natural ingredients. Consequently, food and beverage manufacturers must combine both consumer wishes with great tasting, authentic products while ensuring sustainable development processes.
“Consumers want to know and understand what their food consists of, where the ingredients come from, how they get processed, and how the planet and people throughout the production process benefit,” says Leif Jago, Global Marketing Manager Food & Beverage at Symrise.
Valorisation of natural product side streams for flavour creation
Symrise SET Flavors™ addresses these consumer wishes and matches the future’s ecosystem deployment. It supports the innovation network with strategic partners to source, enrich, decode, and optionally transform nature’s complexity for the creation of taste solutions by using selected natural raw materials.
SET Flavors™ makes natural raw materials accessible with a smart combination of extraction, separation, and concentration technologies. This includes adsorption, nano- and ultra-filtration, fractional distillation, and osmosis based on advanced membrane developments. These technologies enable Symrise to access the enriched and authentic essentials needed to deliver nature´s full complexity in its product solutions.
In addition, SET Flavors™ links closely to the technical research platforms of Symrise: Sensory Guided Analysis, AgroScience, Biotechnology, and Separation Technologies. They combine the objective to identify, enrich and reconstitute side stream materials. This aims at degrading or eliminating undesired odor and taste actives from complex raw materials and enriching the pleasant components of raw materials.
SET Flavors™ covers the utilisation of solid or liquid side streams from the food industry – including pomaces, sift outs, materials from the preservation process, vegetable processing, fermentation, and cell materials. This approach helps Symrise identify value adding components. By using natural conversion processes – such as biotransformation via enzymes or fermentation – SET Flavors™ generates signature profiles for use in beverage and culinary applications, which contribute to culinary complexity and pleasant taste profiles.
Authentic, signature taste for food and beverage manufacturers
“Our new brand SET Flavors™ is championing a dedicated combination of technologies to source, enrich, decode and transform value from nature,” explains Stefan Brennecke, Master Technologist and Head of Separation Science in Research & Technology Food & Beverage at Symrise. “In doing so, it generates a unique value proposition for our products and customers to serve superiority and consumer preferred market products.”
The technologies enable a better use of existing specialties and solutions to achieve a certain taste or aroma effect, including juiciness, masking, complexity, and authenticity. Their deployment enables Symrise to provide uniqueness and added value to its taste solutions, delivering signature food and beverage products for customers. SET Flavors™ deploys various principles of circular economy and contributes to a more sustainable food system by processing materials from side streams.
The SET Flavors™ technologies are established in production or pilot scale. Based on the composition of the new raw materials, the Research & Technology and Production teams use their expertise to modify and optimize processes. Using this as a base, the research platforms are continuously exploring new technological approaches and processes to reduce costs, energy and avoid waste materials.
“As a new brand, SET Flavors™ strongly align with the core competencies of Taste, Nutrition and Health – supporting sustainability as an integral part of our company philosophy,” adds Uwe Schäfer, Director Applied Research in Research & Technology Food & Beverage at Symrise. “With the combination of great, authentic taste and sustainable practices, SET Flavors™ contributes to our approach towards naturalness in the Symrise code of nature™ platform. The brand supports manufacturers to develop unique food and beverage products, while responding to the consumer need for sustainable and planet-friendly consumption.”
Isobionics®, a brand of BASF Aroma Ingredients, is launching two new natural products on the flavour market. Isobionics® Natural alpha-Bisabolene 98 and Isobionics® Natural (-)-alpha-Bisabolol 99 are the latest additions to our Isobionics’ portfolio being proof points of our commitment to developing natural flavours driven by customer needs.
“We are delighted to introduce the two new products, which are natural flavours and produced with our cutting-edge fermentation technology. Therefore, they are independent from harvest conditions and pesticide free,” says Toine Janssen, CEO of Isobionics®. “This is a major milestone for us and for the flavour industry, as it is the first time that two natural flavours are being launched and marketed together. Building on our cutting-edge fermentation technology we can constantly expand our natural flavour portfolio beyond our well-established citrus products to address further customer and market demands.”
Breaking new ground beyond the citrus portfolio, Isobionics® is unlocking a world with new possibilities for food, beverage, and flavour enthusiasts and is proud to introduce the following two products:
Isobionics® Natural (-)-alpha-Bisabolol is a known product, traditionally derived from natural sources and with a complex and captivating aroma profile. Renowned for its delicate floral notes, it offers a subtle hint of chamomile, along with hints of sweet, woody undertones, resulting in a truly unique flavour experience. This groundbreaking innovation allows culinary professionals and beverage creators to boost other flavours such as Vanillin and Nootkatone to add a distinctive twist to their creations.
Isobionics® Natural alpha-Bisabolene 98 is a breakthrough in the flavour industry as its purity improves better flavour development. Moreover, with its creamy milky flavour, it makes a major contribution to the expansion of the Isobionics®‘ portfolio.
One of the most exciting aspects of the two new flavour ingredients is their great versatility. These flavour ingredients, produced at very high concentration via fermentation technology can be found not only in citrus essential oils, but also in several other natural oils, such as chamomile, ylang-ylang, black pepper, and basil oils. The very high quality of our natural flavours opens a world of possibilities for flavour enhancement in a variety of applications. Whether it is adding crispness to mild flavours, complexity to your beverages and confectionery formulations, or a savory punch to culinary creations, the new products offer limitless potential for creating memorable taste experiences. These natural products, use only renewable raw materials and they are produced via fermentation technology, which makes them independent from harvest conditions and seasonality and free from agricultural residues, thus ensuring a constant quality in your products.
Steffen Götz, Vice President of Aroma Ingredients at BASF, highlights the dedication to customer-centric innovation: “Isobionics’ new flavour solutions embody our ongoing commitment to providing sustainable and high-quality ingredients. These new product launches complement and expand the existing portfolio and answer the need for fermentation-based natural flavours. Dedication to providing natural and sustainable flavour solutions forms the core of our new product developments. Our biotech platform plays a significant role in developing future ingredients to deliver exceptional flavor profiles that are geared to consumer preferences.”
The new natural flavours Isobionics® Natural alpha-Bisabolene 98 and Isobionics® Natural (-)-alpha-Bisabolol 99 have now been officially launched. Customers can already reach out to their designated sales contact and schedule an exclusive presentation of the new flavours to experience these extraordinary flavour innovations firsthand.
Treatt, the manufacturer and supplier of a diverse and sustainable portfolio of natural extracts and ingredients for the beverage, flavour and fragrance industries, announces that Daemmon Reeve has informed the Board of his intention to retire from his role as Chief Executive Officer and as a director of the Company.
Daemmon’s retirement comes after 32 years with Treatt, the last 11 years as CEO. He has agreed with the Board that he will step down from his role on 31 December 2023 and will step down immediately from Treatt’s Nomination Committee.
The Board regularly reviews succession planning and has begun the process to appoint a new CEO.
Until a new CEO is appointed, Ryan Govender, the Company’s Chief Financial Officer, will be appointed as Interim CEO from 1 January 2024. Building on his international and diverse experience from his previous roles, most recently within Associated British Foods, Ryan has a strong understanding of the business and has played a key role as part of the Treatt team in formulating an ambitious strategy for the future of the business.
Sensegen, the pioneering biotechnology-based solution provider in taste, smell, and beauty, has launched its highly anticipated Exotic Flavours collection.
Sensegen has created a range of captivating flavours for food and beverages. The collection features six unique exotic true-to-fruit flavours: lychee, guava, papaya, yuzu, dragon fruit, and violet.
“We are thrilled to introduce the Exotic Flavours collection to the market, representing a significant milestone in our mission to redefine taste and consumer experiences,” said Natasha D’Souza, VP of Flavours and Consumer Experience at Sensegen.
“Our research has revealed that exotic flavours transcend vacation settings and have become a top preference for various occasions and drink preferences. By leveraging our bio-based solutions, we invite food and beverage companies to explore the immense potential of these flavours across different categories and create truly personalised experiences for their consumers,” said D’Souza.
According to Sensegen’s Sensory and Consumer Insights Center, 48 % of consumers identified exotics as a top flavour. Consumers are open to more adventurous flavours in social settings or when they feel exploratory. In alcoholic beverages, consumers consider unique, exotic, and natural flavours as the top three desired characteristics.
Sensegen will unveil the Exotic Flavours collection at IFT First in Chicago, July 17-19, 2023, at its creative partner Blue California’s booth S1670. In anticipation of the collection, IFT attendees will be the first to taste food and beverage prototypes made with the flavours and complimentary ingredients from Sensegen’s sugar reduction solutions partner Sweegen.
Turpaz acquires control of the Hungarian flavour company Food Base, a company specialise in the production, development and marketing of flavours, herb extracts and essential oils for the food and beverage industry
Turpaz Industries continues the momentum of its acquisition campaign and the implementation of its growth strategy, announcing today that it has signed an agreement to purchase 60 % of the shares of the Hungarian company, Food Base, for a consideration of 9.5 million dollars, from which 60 % of Food Base’s net debt will deducted at the time of completion of the transaction. Additionally, the Seller will be entitled to future consideration will be based on Food Base’s business performance during the years 2023-2024. The agreement includes a call option for Turpaz to purchase the remaining Food Base shares, exercisable after three years from the expiration date completion of the transaction. Food Base’s sales turnover in 2022 amounted to 5.7 million dollars. The transaction will be financed through bank debt. Completion of the transaction is expected in the coming months, subject to receiving regulatory approvals in Hungary.
Food Base was founded in 2004 by Tamás Győrfi and today is a leading and growing company offering flavours and plant extracts to the Hungarian market, as well as exporting to other European countries. Food Base has a research and development center, a marketing and sales system and owns a modern and efficient production site measuring 4.5 dunams, located on land of 8.3 dunams in Budapest. The factory has a large production capacity with the possibility for significant expansion. Food Base employs 55 people, of which 10 are engaged in research and development and have advanced academic degrees. The main activity of Food Base is the development, production, marketing and sale of sweet flavours and natural herbal extracts for the food and beverage industry, with an emphasis on convenience food, health drinks and snacks, as well as unique raw materials for the nutritional supplement industry.
The acquisition is synergistic for Turpaz’s activities and is expected to significantly increase the circle of customers and the volume of sales, while expanding the product portfolio, deepening its activities and its market share in emerging markets. Turpaz intends to utilise the development, production and sales capabilities of Food Base to develop its business in the area.
About Turpaz: Turpaz was established in February 2011 and operates on its own and through its subsidiaries in the development, production, marketing and sales of scent extracts used in the production of cosmetics and toiletries, personal care products and atmospheric application; flavor extracts used in food and beverage production; unique intermediates for the pharmaceutical industry and unique raw materials for the agro and fine chemical industry; and citrus products and aroma chemicals for the flavour and fragrance industry. The Turpaz group has a wide and diverse portfolio of products, the result of in-house development and manufacture. Turpaz develops, manufactures, markets and sells products to more than 2,000 customers in over 30 countries around the world and operates 13 production sites that include research and development centers, laboratories and sales, marketing and regulatory offices in Israel, the USA, Poland, Belgium, Vietnam, Latvia and Romania.
Just a few years ago, Krones’ subsidiary Steinecker opened a technology center in Freising (GER) where customers can create and test recipes for beer and plant-based drinks. Now, the group is setting another important milestone in the evolution of beverages and processes. In early May, at the company’s headquarters in Neutraubling (GER), a fully-equipped R&D lab was officially inaugurated and dubbed the “Process Technology Center”.
The new Process Technology Center is designed to support Krones customers in their product development processes and meet the flavour demands of the global markets. It makes no difference whether the customer already has a finished recipe for a future product or is still at the start of the product development journey and would like to leverage Krones’ expertise for those first steps.
Krones itself will use the new technology center to more closely analyse the effects of various process parameters on different products. The results will then go into further developing and refining Krones machines and lines.
Expertise for process technology and water design
The technology center is divided into two sections: process technology and water design.
On the process technology side, various process and treatment steps can be realistically simulated on a pilot UHT system. That makes it possible, for example, to compare the thermal impact of indirect heating using a shell-and-tube heat exchanger versus direct heating. For this, customers can choose between two processes: steam injection and steam infusion. For other trials, the facility is also equipped with systems for mixing, flash pasteurisation, deaeration, homogenisation and filling. The results are then evaluated in-house, for example in Krones’ own microbiological and chemical testing labs.
Optimising the flavour profile of water
In the field of water design, customers can fine-tune the flavour of their water by adding just the right amounts of minerals and flavour compounds. The technological possibilities include deaeration, carbonation, electrodeionisation, ionisation, mineral dosing and filling.
A water sommelier provides support throughout the trials. Customers also have access to Krones’ extensive network of experts, with engineers in a variety of disciplines, including food and process engineering, to collaborate on transforming product ideas into real products.
Doehler and Ixora’s global partnership is committed to transforming natural taste modulation, broadening Doehler’s capabilities in natural ingredients and integrated solutions, further complemented by an upcoming cutting-edge hub in North Brunswick to accelerate agile flavour innovation and meet the needs of US customers.
Doehler, the global food and beverage ingredient company, has announced a strategic partnership with Ixora Scientific to discover and commercialise natural taste modulators derived from botanicals and cooperate around natural ingredients systems and integrated solutions for the global food and beverage industry.
Ixora Scientific is a San Diego-based start-up focusing on the research and development of novel taste modulators. With a fast-forward approach, within 18 months the Ixora team has developed a strong pipeline of modulators, using plants as starting material. The product portfolio is composed of a sweet taste modulator that strengthens sweet taste intensity, delivering sugar mouthfeel and early onset; outstanding maskers for astringent, bitter, sour, and plant protein off-tastes; and boosters for creaminess, alcohol spiciness, carbonation perception, and vanilla profile. The company is currently focusing on patent applications and regulatory approval.
As part of its commitment to innovation, health wellness, and sustainability, Doehler has established a long-term strategic partnership with Ixora, which will act as its research discovery partner for the next generation of taste modulators. Doehler brings its over 185 years of experience in the ingredients industry and its well-established thought leadership in the German and European flavours market to the US with a modern and visionary approach.
To further extend this partnership, Doehler will soon be inaugurating a technological and cutting-edge new office and lab customer facility in North Brunswick, acting as the Ixora east coast collaboratory hub and focusing on the development and validation of thousand product applications. Dedicated and experienced flavourists will be on hand to help scale up Ixora solutions and work as experts in flavour forensics. The North Brunswick hub will add to the other Doehler locations in the US, Pine Brook (NJ), Cartersville (GA), Chicago (IL), and Los Angeles (CA).
A new hard iced tea, bound to delight tea lovers everywhere in the US, is entering the market! Made with real brewed Lipton tea, natural fruit flavours and a triple-filtered, premium malt base, Lipton Hard Iced Tea takes America’s favourite tea and reimagines it as a 5 % ABV non-carbonated product. This great tasting and refreshing hard iced tea is launching in four just-sweet-enough flavours that are inspired by Lipton tea fan favourites: Lemon, Peach, Half & Half and Strawberry.
About the flavours
All four flavours are made with real brewed Lipton tea:
Lemon: Tart lemon flavour and smooth Lipton iced tea combine in this classic 5 % ABV flavour.
Peach: Juicy peach flavour makes this fruity, 5 % ABV hard iced tea stand out in the crowd.
Strawberry: A balanced blend of ripe strawberry flavour, 5 % ABV and smooth Lipton iced tea for sunshine-ready sipping.
Half & Half: Lipton iced tea meets the just-sweet-enough flavour of lemonade in this refreshing 5 % ABV hard iced tea blend.
vitaminwater® announced the addition of two new flavours – ‘with love’ and ‘forever you’ – to its zero sugar lineup, plus an innovative reformulation for all six zero sugar flavours. The new zero sugar reformulation offers our latest sweetener formula that includes monk fruit and stevia in addition to added vitamins and nutrients. The products are now available in the US at mass retailers, grocery stores and convenience stores.
The new flavours serve as an extension of vitaminwater’s promise to ‘nourish every you.’ Inspired by the notion that multiple sides of “you” have needs, vitaminwater encourages individuals to nourish each and every one. Whether your body, your emotions, or your complexities, vitaminwater has something in its suite of products to celebrate your multifaceted self.
Joining vitaminwater’s zero-sugar rainbow of flavours, ‘with love’ and ‘forever you’ provide new nutrition that can add positivity for each of your “yous”:
‘with love’ is delightfully infused with raspberry and dark chocolate for a unique taste. The nutrient-enhanced water beverage features a liquid boost of magnesium (85 mg) to help support heart health and 100 % antioxidant vitamin C alongside vitamin A (25 %) and vitamin E (30 %).
‘forever you’ contains tropical coconut lime flavours with white curcumin (18 mg) alongside 100 % antioxidant vitamin C, vitamin A (25 %) and vitamin E (30 %). Both drinks are a great source of vitamin b3, vitamin b5, vitamin b6, and vitamin b12.
Firmenich introduces Orange NextGen replacers and extenders, its natural alternative to FTNF (From The Named Fruit) orange oils, achieving identical orange flavours at significant economic benefit to customers and enabling sustained supply.
The global orange oil market has been under severe pressure and volatility in recent years due to crop shortages, poor fruit quality, climate-related challenges, and transportation instability. To address these supply disruptions and meet the growing demand for orange citrus oils, Firmenich has developed a range of natural, high-performing Orange WONF (With Other Natural Flavours) solutions, achieving taste profiles identical to orange oils.
“A fundamental part of our commitment to being our client’s unrivaled Citrus Partner means providing great taste and consistent quality, together with supply stability,” said Sonia Botta, Firmenich’s Global Citrus VP. “This is especially relevant in light of the continuing supply challenges facing the orange oil market. By leveraging our strong in-house citrus capabilities, advanced analytical expertise and deep understanding of natural molecules, our experienced Citrus Flavorists have masterfully created Orange NextGen replacers and extenders, allowing us to provide equivalent taste at cost competitiveness.”
For use in a wide variety of applications including waters, juices, alcoholic beverages, sweet goods and savory products, Firmenich’s Orange NextGen is designed to replace or extend orange oils, helping customers avoid product disruptions and delivering the same great flavour their consumers have grown to love.
Bevolution, one of the most diverse and creative beverage providers in the US, has something new bubbling. Soda is now on the menu, but it’s not the Bevolution way to settle on just the classics. While the new options do include traditional flavours like Cola, Ginger Ale, Citrus, and Root Beer, new small-batch craft flavours will also be available. Try something sweet like our Banana Split, maybe a glass of Raspberry Lemonade will hit the spot, or if you are feeling adventurous, how about trying the Tropical Sriracha for a mix of sweet and heat! This is just a taste of everything Bevolution has brewing up. The new product line of sodas was released nationwide on December 1st, 2022.
Looking for something a bit more your own? Bevolution is launching a custom small-batch craft soda program. Bevolution will work with partners to create new and innovative dream flavour combinations that will perk up taste buds everywhere. All the soda flavours are sweetened with pure cane sugar, never high-fructose corn syrup, to ensure the highest quality and best tasting drinks.
“Today’s carbonated soft drink consumers want cane sugar, premium ingredients and better than national brand flavours. Bevolution Group is pleased to announce our Craft Soda line for fountain dispensers. Formulated to appeal to today’s beverage consumer.” – Robert Corlett Sr. VP of Sales
The craft soda market is now more than a 650 million dollar -a-year enterprise with expected to expand at a compound annual growth rate of 5 % over the next 8 years. As tastes change and demand grows for higher quality ingredients and unique flavours you can expect to see Bevolution at the forefront of craft beverages.
Bevolution Group has a history of beverage innovation dating back to 1962 from iconic mixers in New York bars, juices, energy drinks, and the first shelf stable smoothie free of artificial ingr edients.
Azelis, a leading global innovation service provider in the specialty chemicals and food ingredients industry, announces that it has reached an agreement to acquire a majority stake in Ashapura Aromas Private Limited, a leading distributor of ingredients in the flavours & fragrances market in India.
This acquisition provides Azelis with a strong F&F platform in Asia Pacific, creating a global F&F network, following its 2021 acquisitions of Vigon in the US and Quimdis in France, serving the Americas and EMEA regions respectively. Ashapura’s extensive product portfolio strategically complements the group’s lateral value chain in the fast-growing F&F market segment, strengthening the offering and technical expertise Azelis provides to customers.
Founded in 2003 and headquartered in Mumbai, Ashapura is the leading distributor of F&F ingredients in India, representing more than 225 principals with well-established partnerships and serving over 900 customers globally through the breadth and depth of its portfolio of products. Ashapura’s 100 plus employees will join Azelis, along with founders and owners Ajaykiran and Nayan Gudka, who will remain to lead the business post-integration. The transaction is expected to close before the end of the third quarter, after fulfilment of customary closing conditions.
The Flavors & Fragrances (F&F) business unit of specialty chemicals company LANXESS is increasing prices worldwide for its entire portfolio of preservatives, benzoates, intermediates, aroma chemicals and multifunctionals with immediate effect. Customers will be contacted individually regarding the specifics of the measure as it applies to their products or regions.
The reasons for the adjustments are, in particular, unprecedented challenges with a significant impact on logistics and production. Fragile supply chains, dramatically increased raw material and energy costs – not least as a result of the war in Ukraine with oil and gas prices at record levels – bring significant consequences for the entire supply chain.
Offerings from F&F are primarily used to provide flavour, fragrance, shelf life and essential performance characteristics in a wide variety of consumer products, such as food and beverages.
The acquisition strengthens ADM’s flavour capabilities and reach, expanding ADM’s footprint in the high growth African market
Global nutrition leader, ADM, announced that it has completed its acquisition of Comhan, a leading South African flavour distributor. ADM has worked together with the local business for a number of years, with the formal acquisition now giving new and current customers more direct access to ADM’s extensive portfolio and network of experts.
“This acquisition marks a very exciting moment for ADM, as we continue to develop our Nutrition business in key growth markets including Africa. I am confident that this acquisition will open up opportunities for our customers in the region and build on the capabilities of our existing offices in Nigeria and Kenya.” said Calvin McEvoy, President Global Beverages ADM.
“At ADM we believe it is critical to invest in flavour creation assets globally to extend production and supply chains, making it easier to get unique and consumer-preferred flavours to local customers. The acquisition of Comhan means we can bring together our 80 years’ experience in the flavour industry and Comhan’s unique market insight to generate innovative products which cater to local tastes and interests. Comhan’s business is currently focused on beverages but through this new partnership we plan to grow the distribution capabilities to include food and savoury products.” added McEvoy.
Welcoming Comhan into ADM’s portfolio comes together with other recent investments in alternative flavour production, including the company’s recent state-of-the-art facilities in Pinghu, China and Berlin, Germany.
The acquisition strengthens ADM’s flavour capabilities and reach, expanding ADM’s footprint in the high growth African market
Global nutrition leader, ADM, announced that it has completed its acquisition of Comhan, a leading South African flavour distributor. ADM has worked together with the local business for a number of years, with the formal acquisition now giving new and current customers more direct access to ADM’s extensive portfolio and network of experts.
“This acquisition marks a very exciting moment for ADM, as we continue to develop our Nutrition business in key growth markets including Africa. I am confident that this acquisition will open up opportunities for our customers in the region and build on the capabilities of our existing offices in Nigeria and Kenya.” said Calvin McEvoy, President Global Beverages ADM.
“At ADM we believe it is critical to invest in flavour creation assets globally to extend production and supply chains, making it easier to get unique and consumer-preferred flavours to local customers. The acquisition of Comhan means we can bring together our 80 years’ experience in the flavour industry and Comhan’s unique market insight to generate innovative products which cater to local tastes and interests. Comhan’s business is currently focused on beverages but through this new partnership we plan to grow the distribution capabilities to include food and savoury products.” added McEvoy.
Welcoming Comhan into ADM’s portfolio comes together with other recent investments in alternative flavour production, including the company’s recent state-of-the-art facilities in Pinghu, China and Berlin, Germany.
The acquisition strengthens ADM’s flavour capabilities and reach, expanding ADM’s footprint in the high growth African market
Global nutrition leader, ADM, announced that it has completed its acquisition of Comhan, a leading South African flavour distributor. ADM has worked together with the local business for a number of years, with the formal acquisition now giving new and current customers more direct access to ADM’s extensive portfolio and network of experts.
“This acquisition marks a very exciting moment for ADM, as we continue to develop our Nutrition business in key growth markets including Africa. I am confident that this acquisition will open up opportunities for our customers in the region and build on the capabilities of our existing offices in Nigeria and Kenya.” said Calvin McEvoy, President Global Beverages ADM.
“At ADM we believe it is critical to invest in flavour creation assets globally to extend production and supply chains, making it easier to get unique and consumer-preferred flavours to local customers. The acquisition of Comhan means we can bring together our 80 years’ experience in the flavour industry and Comhan’s unique market insight to generate innovative products which cater to local tastes and interests. Comhan’s business is currently focused on beverages but through this new partnership we plan to grow the distribution capabilities to include food and savoury products.” added McEvoy.
Welcoming Comhan into ADM’s portfolio comes together with other recent investments in alternative flavour production, including the company’s recent state-of-the-art facilities in Pinghu, China and Berlin, Germany.
The world’s leading trade show for food ingredients will open its doors to vaccinated and recovered attendees
Fi Europe co-located with Hi Europe, which will be held in-person in Frankfurt from November 30 to December 2, will implement the so-called 2G rule to ensure maximum levels of safety for all. Additionally, the Informa AllSecure Health & Safety Standard promises full hygiene and protection in the exhibition halls thanks to a comprehensive number of measures. This means that attendees can network and learn all about the latest food and beverage industry innovations under optimal conditions.
The 2G rule requires attendees to provide a digital EU-approved COVID certificate proving that they are fully vaccinated, or have recovered from COVID-19 within the last six months.
Formnext, the first trade show held under 2G at the Messe Frankfurt venue, took place a few days ago with highly satisfactory results. Wolfgang Marzin, President & CEO of Messe Frankfurt, said: “It is fantastic to have tradeshows taking place again and for us it is important, and encouraging, to see that the 2G protocol works. Spirits are high, attendees feel safe and seem to really take full advantage of what the show has to offer. We are also seeing an increased proportion of decision-makers attending, something I have heard other event organisers are also experiencing.”
For trade fair organizer Informa Markets, it is clear that 2G in combination with high security standards will prove invaluable. Julien Bonvallet, Brand Director at Informa Markets, comments: “To have our attendees feel safe and comfortable while doing business has been a top priority for us at Informa in the last few months. Thanks to the Informa AllSecure Standards, we have recently run a lot of successful events where we saw confidence scores above 96 %.Given the current situation, it was important to make the event even safer and we have therefore opted for the 2G option last week. Meanwhile, the state of Hesse proclaimed the 2G rule as mandatory. We’re incredibly pleased to be back in Frankfurt, and I am confident that this year’s event will once again be all about business, inspiration and, of course, plenty of highly anticipated face-to-face networking.”
IFF announced today that the Company invested a total of USD 87 million in their newly extended flavors manufacturing facility in Karawang, Indonesia during the site’s virtual opening. The facility, located in Karawang International Industrial City, first started operations in 2015 to address the fast-growing demand for flavour technology in the region. Today, as IFF’s largest manufacturing facility in Greater Asia, Karawang houses full manufacturing capabilities, from liquid compounds to powder, emulsions, and spray dry technology, warehousing and quality control.
The newly extended 12,800m2 state-of-the-art facility is equipped with modern infrastructure and technology to ensure efficiency, safety, quality, and traceability. In line with the Company’s dedication to drive sustainability, the site initiatives range from zero waste to landfill, and reductions in greenhouse gas emissions, energy, water, and hazardous waste. The expansion and increased capacity services customers in South East Asia and North Asia. This investment is consistent with IFF’s strategy to capture the growth potential of emerging markets in Asia.
Symrise AG successfully continued its profitable growth course in the third quarter of 2021. The Group recorded excellent organic sales growth of 8.3 %. In the first nine months of the current financial year, growth even amounted to 9.2 %. Taking into account the portfolio effect from the acquired fragrances business of Sensient as well as currency translation effects, Group sales rose to € 2,883 million during the reporting period (9M 2020: € 2,703 million), up 6.7 % compared to the prior-year period and 10.6 % in the third quarter. Both segments contributed to this positive result.
Dr Heinz-Jürgen Bertram (Photo: Symrise)
“We can look back on an exceptionally successful third quarter of 2021. As a result of the progress made in battling the coronavirus pandemic, demand has continued to increase significantly. The demand was particularly high for applications associated with more travel or leisure activities – including, for example, sun protection products, fragrances, but also applications for beverages and culinary products. We are extremely satisfied with our business development since the beginning of the year and we are continuing our accelerated growth path,” said Dr Heinz-Jürgen Bertram, CEO of Symrise AG. “This is why we are once again raising our sales forecast to around 9 %. We are confident that we can achieve even more growth than forecasted after six-months and we will make the best possible use of the remaining weeks in 2021 to achieve this target.”
Applications for beverages and pet food drive strong sales growth for Flavor & Nutrition segment
The Flavor & Nutrition segment increased organic sales by a strong 10.0 % compared to the previous year. In the third quarter, organic growth amounted to 9.7 %. Taking currency translation effects into account, segment sales increased to € 1,752 million (9M 2020: € 1,646 million). Flavor & Nutrition also saw a normalization of consumer behavior owing to progress in combatting the coronavirus pandemic. The increase in out-of-home consumption exerted a positive impact and led to strong demand for beverages. At the same time, the increasing number of households with pets across the world generated high demand for pet food applications, resulting in strong growth in this business unit.
Applications for beverages recorded sales growth in the double-digit range. In all markets, growth was particularly driven by the strong increase in demand for beverages destined for out-of-home consumption.
Sales in the Savory business unit in all regions slightly exceeded the exceptionally high prior-year level, which was characterized by the particularly high demand during the initial months of the coronavirus pandemic.
Sales for sweet product solutions were slightly below the prior-year level. Medium single-digit growth driven by new customers in Latin America and Asia/Pacific was offset by the current low price level for vanilla.
The Pet Food business unit continued its strong growth compared to the already excellent prior-year period and increased sales in the double-digit percentage range. The sales development was particularly dynamic in the national markets of Mexico, Russia and South America.
The Food business unit achieved modest organic growth. This was driven by rising sales in Western Europe, while sales in North America declined slightly.
The ADF/IDF Group also developed extremely well, achieving double-digit organic sales growth. The business recorded strong growth in its home market, the American domestic market.
The Probiotics business unit, including the majority shareholding in the Swedish company Probi AB, did not maintain the strong level of the previous year and recorded a slight decline in sales. This is balanced by strong project vitality with numerous new product launches of customers.
Symrise once again raises its sales forecast for 2021
With its global presence, the continually growing, diversified portfolio and its broad customer base, Symrise considers itself as being robustly positioned despite the ongoing challenging market environment. Symrise has full delivery capability and can reliably meet the strongly rising demand in the wake of successful combatting of the coronavirus pandemic.
Based on the positive business development in the first nine months, Symrise is once again raising the sales target and now expects organic growth of around 9 % for the full year 2021. This corresponds to an increase of around two percentage points compared to the raised forecast of 7 % in August 2021. Symrise thereby highlights its aspiration to once again significantly outperform growth in the relevant market for fragrances and flavors during the current financial year. In the present business environment, current estimates assume market growth of 3 to 4 %.
Furthermore, Symrise is adhering to its profitability target for the financial year 2021 and is aiming for an EBITDA margin of more than 21 %.
The medium-term targets continue to be unchanged. The company expects to increase its sales to between € 5.5 and € 6.0 billion by the end of the financial year 2025. Symrise intends to achieve this increase with annual organic growth of 5 to 7 % (CAGR) and complementary strategic acquisitions. Profitability over the medium term is projected in the target corridor of 20 to 23 %.
The traditionally popular flavours of cola, lemon-lime and pepper saw a combined 4.3 % volume decrease in 2020, according to GlobalData. While these flavours will remain dominant, one of the leading data and analytics companies says that leading drinks brands are making room to experiment with unique, limited-time-only flavours that entice a young generation that is fuelled by a fear of missing out (FOMO).
George Shaw, Beverages Analyst at GlobalData, comments: “These shock factor, experimental beverages tug on the ‘FOMO’ strings – especially when a lot of buzz is generated across different social platforms. Capturing the attention of online influencers is key as they could share the ‘crazy concoctions’ to their social feeds. Further, curiosity is a powerful drive. According to GlobalData’s Q2 2021 consumer survey, around a third* of US consumers purchase new varieties of soft drinks out of curiosity.”
GlobalData notes that some of the more unusual ingredients that have grown in popularity in the past year include floral flavours, such as rose, violet and elderflower*. Further, the analytics company expects to see brands experiment with spice flavours in the coming colder months. Coca Cola cinnamon is an example of an industry leading company experimenting with unusual ingredients, which sets a good example for other companies to follow suit.
Soft drinks flavours were taken to a new level in August, with PepsiCo’s release of its ‘Flamin Hot Mountain Dew’. The company released the teen gamer’s ‘dream drink’*as it combined the Cheetos flamin hot flavour with energy drink. The product* was released through its online store and used twitter to promote.
Shaw continues: “Flamin Hot Mountain Dew was both a limited edition, as well as limited to two six-can cases per order – creating an air of exclusivity and leveraging FOMO.”
This is not the first time PepsiCo has experimented with ‘unusual’ flavours.
PepsiCo’s collaboration with Peeps in March saw it release a marshmallow soda, which was only available to participants that shared a tweet enjoying springtime activities – tagging Pepsi and using a hashtag. Rather than being a catalyst for sales, this was a fun promotional campaign wherein PepsiCo increased consumer and brand interaction.
Shaw adds: “People spend a lot on fizzy drinks – as admitted by 34 %* of US consumers in GlobalData’s survey. Successful collaborations and innovations from PepsiCo will pave the way for the continuation of innovative flavours across the soft drinks landscape in the future.”
*GlobalData’s Consumer Survey Results – Q2 21 US. 35 % of ‘Often’ and ‘Sometimes’ responses combined **GlobalData’s 2021 Global Consumer Survey – Ingredients & Flavours
Expanding its global distribution presence, Prinova Group LLC, a NAGASE Group Company, has entered into a definitive agreement to acquire industry expert The Ingredient House, LLC (“TIH”). TIH has a significant presence in the sweetener, polyol and specialty ingredient sectors both in the U.S. and internationally. This purchase represents another stride forward in Prinova’s long history of growth in the ingredient distribution space.
Founded in 2006 and headquartered in Southern Pines, North Carolina, The Ingredient House is a quality-focused supplier of ingredients to the global food and beverage industry. TIH has experienced substantial growth since its inception through strategic partnerships with global branded customers and offshore manufacturers. Key to TIH’s success is its implementation of and adherence to improved quality standards to consistently deliver the global supply chain needs of its food and beverage customers.
Headquartered Carol Stream, IL and privately owned for 40 years, Prinova was acquired by Nagase & Co., Ltd., based in Tokyo, in 2019. Since then, Prinova has experienced substantial growth in flavour manufacturing, premix manufacturing, and its flagship ingredient distribution offering. This acquisition is an opportunity for Prinova to further leverage industry relationships and integrate The Ingredient House’s unique supply chain advantages into its existing business.
About The Ingredient House, LLC Founded in 2006, The Ingredient House, LLC is a global supplier of high-quality polyols, high intensity sweeteners, and other specialty ingredients for the food & beverage industry. Utilizing a unique, solutions-oriented business model, TIH is a trusted strategic sales, marketing, and quality partner to its global ingredient manufacturing relationships and world-class customer base. TIH has earned a reputation for its ability to deliver creative solutions to supply chain challenges while offering best-in-class quality and customer service.
About Prinova Group LLC and Nagase & Co. Ltd. Headquartered Carol Stream, IL, Prinova has been providing high-quality ingredients, flavors, nutrient premixes, and value-added solutions to the food, beverage and nutrition industries for over 40 years. As a world-leading distributor of functional ingredients, Prinova utilizes a global network to help its customers gain the strategic advantage they need to drive their business forward. Prinova was acquired by Nagase & Co., Ltd. (“Nagase”) in 2019. Founded in 1832, Nagase offers global trading services of chemicals, plastics, electronics materials, cosmetics, and food ingredients. With more than 100 Group companies in 30 countries and regions, Nagase offers unique values to customers by combining group functions of manufacturing, processing, and R&D.
ADM unveiled the ADM Food Technology (Pinghu) Co., Ltd., a state-of-the-art, fully automated flavour production facility situated in Pinghu, Zhejiang Province, China.
“Since our acquisition of WILD Flavours in 2014, we’ve invested in organic growth, bolt on and platform M&A, and new innovations and technologies to build ADM into a premier global human and animal nutrition company,” said Chairman and CEO Juan Luciano. “Our strategic actions have benefited our customers and our shareholders alike: we’re achieving key financial goals and delivering record results in no small part because we’ve become the partner of choice for customers around the globe as they meet growing and evolving demand for healthy, delicious foods and beverages from nature. Our new, leading edge flavour facility in Pinghu will serve as ADM’s flavour supply hub in APAC, allowing us to leverage our expertise and leading-edge technologies and build out the ADM pantry to further meet customer needs and advance our growth strategy.”
The 27,000+ square meter flavour production facility is strategically located within an hour of Shanghai, bringing geographic advantages for ADM’s customers while providing the company with direct access to top talent. The complex features:
The latest in automated flavour lines with advanced dosing technology, along with technologies to ensure seamless and efficient management of complex processes;
Labs dedicated to flavour production, taste design and product development;
ISO 9001 and FSSC 22000 V5.1 certifications; and
Capability to meet demand for specific dietary needs, including Halal and Kosher certified products.
The Pinghu facility is the latest of ADM’s strategic growth investments in its global Nutrition business. Other recent expansions include:
The planned acquisition of a 75 % ownership stake in PetDine, Pedigree Ovens, The Pound Bakery and NutraDine, premier providers of private label pet treats and supplements;
The planned acquisition of Sojaprotein, a leading European provider of non-GMO human nutrition protein solutions; and
The acquisition of Golden Farm, a state-of-the-art animal nutrition premix provider in Vietnam.
ADM has more than 5,000 employees throughout the wider Asia-Pacific region, across more than 50 operations and business sites, including a recently opened state-of-the-art plant-based innovation lab in Singapore; technical innovation centers in China, Singapore, Australia, Japan and Vietnam; and production and processing facilities, grain origination, grain destination marketing warehouses and trading operations across the region. ADM also owns a strategic stake in Singapore-based Wilmar International Limited, a leading agribusiness and packaged food and oil company in the region.
In 2020 and continuing into 2021, COVID-19 has profoundly affected trading in the UK, with the cider market losing 16.3 %* volume in 2020, dropping to 7837.36 thousand hectolitres, according to GlobalData. However, the leading data and analytics company notes that, with restrictions being lifted and most businesses emerging from lockdown, the possibility of a successful trading year for many companies should not be ruled out, especially those heavily involved in beer and cider production.
Chloe Gbadero, Senior Beverages Analyst at GlobalData, comments: “The lifting of restrictions is great news for companies such as C&C Group, a large cider producer in the UK, which saw a 56.1 %** revenue decline during 2020 due to lockdown measures and an overall downturn for the industry. In H2 2021, C&C Group, and many other companies, have potential to see volume uplifts compared to last year, now that bars and pubs have reopened. This, combined with the potential for warm and sunny weather during the summer months, will continue to encourage outdoor dining and companies would do well to take advantage of the remaining summer months to recoup sales losses during lockdown.”
In GlobalData’s most recent survey in the UK, 21 %*** of respondents demonstrated that when it comes to alcoholic beverages, including cider, fruity flavours are the most appealing. This is 4 % more than citrus flavoured alcoholic products, highlighting a gap in the market for unique flavoured fruit ciders – which producers could benefit from through innovation of products for the remainder of 2021, as usually UK consumers are not the most experimental, preferring sweet and fruity flavours over unique/novel.
Gbadero continues: “It would be interesting to see if alcohol companies will consider further promoting their pre-existing flavoured beverages or introduce new variants in order to encourage further growth. For instance, Old Mout has introduced a new watermelon and lime flavoured variant to its range, following the successful launch of its pineapple and raspberry flavor.
“After a less than favourable 2020, which has fueled long-term loss in the forecast period to 2026, there is still light at the end of the tunnel for this well-established and popular category, provided that producers continue to innovate in line with changing consumer behaviors, and collaborate with on-premise locations to promote cider consumption.”
*GlobalData’s Intelligence Centre – Quarterly Beverage Forecast **C&C Group – Annual Report 2020 ***GlobalData’s Consumer Survey – Q2 United Kingdom
In the reporting currency, the Symrise Group achieved sales growth of 4.8 % to € 1,908 million (H1 2020: € 1,821 million). The acquisition of the Fragrance and Aroma Chemicals business from the US company Sensient in April 2021 contributed € 14.4 million. In spite of the weaker prior-year figures due to the pandemic, organic sales growth was even stronger: During the first six months, Symrise increased sales by 9.7 %. Alongside catch-up effects in the first quarter resulting from the cyber-attack in December, the good dynamic in the second quarter made a contribution. Due to the accelerating business and higher demand, sales increased organically between April and June by 8.8 %.
The Scent & Care segment
Scent & Care, the business with fragrances, aroma molecules and cosmetic ingredients, achieved very good organic sales growth of 9.0 % in the first half year of 2021. Taking currency translation effects into account, sales amounted to € 749 million in the first six months and rose significantly compared to the prior-year period (H1 2020: € 711 million). The Fragrance and Aroma Chemicals business from Sensient contributed € 14.4 million to this. Particularly during the second quarter, normalization of consumer demand began to emerge as battling the pandemic progressed. Sales in the Fine Fragrances business unit and Cosmetic Ingredients division increased strongly.
The Flavor & Nutrition segment
The combined Flavor & Nutrition segment increased its sales organically by 10.1 %. Sales in the reporting currency increased to € 1,159 million and thereby significantly exceeded the prior-year figure (H1 2020: € 1,110 million). In the second quarter, the segment recorded gradual normalization of consumer behavior. The increase in out-of-home consumption exerted a positive effect on demand for beverage products. At the same time, the trend towards healthy cooking at home and the continuing high demand in pet food solutions ensured strong growth.
Applications for beverages recorded very good organic sales growth in the double-digit percentage range. The biggest growth was generated in the US market, China, Brazil as well as Germany, the United Kingdom and Ireland.
August 3, specialty chemicals company LANXESS completed the acquisition of Emerald Kalama Chemical. The U.S.-based company is a world-leading manufacturer of specialty chemicals. LANXESS signed a purchase agreement on February 14, 2021. All required regulatory approvals have been received. LANXESS financed the purchase price of around USD 1.04 billion (EUR 870 million) from liquid funds.
In 2020, Emerald Kalama Chemical generated global sales of around USD 425 million (EUR 375 million) and EBITDA pre-exceptionals of around USD 90 million (EUR 80 million). Seventy-five percent of sales were attributable to business with specialty products for the consumer care market, especially products for flavors and fragrances as well as preservatives for use in food, household products and cosmetics. One quarter of sales originated from business with specialty chemicals for industrial applications. With the closing of the transaction, LANXESS grows by around 470 employees and the three production sites in Kalama/Washington (USA), Rotterdam (Netherlands) and Widnes (Great Britain).
New Flavours & Fragrances business unit
This second-largest acquisition in its company history elevates LANXESS to being one of the leading providers of products for flavours and fragrances for the consumer sector. Products such as aldehydes and benzoates are distinguished by their premium quality, safety and unique flavour profiles.
The main areas of application for the flavourings and fragrances are personal care products, cosmetics and exclusive fragrances, as well as food and drinks. The products in the new LANXESS portfolio encompass over 30 aroma chemicals, providing a range of earthy, floral, fruity, spicy and herbal notes.
Benzaldehyde, for example, gives items such as food, drinks, personal care products and cosmetics a sweet, almond-like flavour and fragrance. It is a key component in the synthesis of rose and jasmine fragrances in the perfume industry.
LANXESS is incorporating the flavourings and fragrances business into the newly established Flavours & Fragrances business unit led by Holger Hueppeler. “We at LANXESS have decades of experience in technology and production to reliably supply our customers with synthetic chemicals and deliver consistently high-quality ingredients that formulators of flavourings and fragrances can rely on,” says Hueppeler, who began his career in 1989 at Bayer and has amassed over three decades of experience in marketing, sales and logistics.
The new business unit will also comprise benzyl alcohol business. The product is used as an ultra-pure preservative for injection solutions and cosmetics and as a synthetic chemical. Other areas of application include the production of fragrances and flavourings and agricultural chemicals.
Nature-identical preservatives for food and household and care products
The acquisition of Emerald Kalama also enables LANXESS to significantly expand its portfolio of preservatives. Key products for the food industry include sodium and potassium benzoate under the Kalama, Purox and Kalaguard brands. They act as gentle preservatives in foods, drinks, personal care and home care products with a pH level of up to 6.5.
Sodium and potassium benzoate are used primarily as nature-identical preservatives and safely inhibit the growth of bacteria, yeast and mold. They are approved as food additives and preservatives by the U.S. Food and Drug Administration (FDA) and are used in food and drink applications. The new products make perfect additions to LANXESS’s existing range of drink stabilizing agents under the Velcorin and Nagardo brands.
Symrise AG has opened its state-of-the-art development, application, and sensory laboratories in Dubai. The company has invested about 1 million Euro into the facilities to decode, design, and deliver winning taste solutions for leading food and beverages brands that consumers love. To meet the demands of its partners and to accommodate its growing team, the company recently moved to the iconic Gold Tower Building in the Dubai Multi Commodities Center (DMCC), Dubai’s dedicated hub for global trade, business and specialist industries in JLT. Symrise AG has been operation in the Middle East for many decades leading to the first opening of its first sub-regional offices in Dubai in 2005. Since then, the company has seen double-digit growth year on year with its partners across the Middle East region.
The new sub-regional centre spreads across 10,500 sq ft and occupies the entire lower penthouse level/36th floor of the Gold Tower. The contemporary workspace has been designed in line with the company’s four pillars of sustainability in mind; footprint, innovation, sourcing and care. It is working towards achieving carbon neutral status, to support the Symrise AG global objective of halving its greenhouse gas emissions by 2025 and reaching climate positive operations from 2030 onwards.
The facilities are designed to take customers on a journey, and support the development of consumer-led winning concepts and taste solutions for high-growth categories, beverages, culinary, dairy, snacks, and confectionery.
The premises will allow the company to support diverse working styles and is split into a variety of working and meeting areas, for Symrise Middle East’s expanding cross-functional teams to interact and collaborate in a bright, modern, and dynamic working environment. The dedicated application and sensory laboratories will help the teams – from marketing, sensory and consumer insights to regulatory, technical, and commercial to continue achieving in the field of flavour and nutrition evaluation.
The sensory booths, where panellists taste, evaluate, and describe flavours in application, features state of the art equipment and programs that help design solutions meeting customers’ expectations.
Commenting on the move, Dirk Bennwitz, President Flavour Europe, Africa & Middle East, said: “We feel very excited to embark on the next phase of our business growth through our new sub regional center. This will help us further consolidate our strong foothold in the Middle East & Africa sub region. Our investment in the new hub, our human resources, and the ultramodern creation, development and application facilities will allow us to identify and decipher game-changing industry trends and deliver innovation to our customers across strategic categories and the future of food segments: functional beverages and plant protein.”
Royal DSM, a global science-based company in Nutrition, Health and Sustainable Living, announced that it has reached an agreement to acquire the flavour and fragrance (F&F) bio-based intermediates business of Amyris, Inc., which extends DSM’s offerings in Aroma Ingredients with bio-based ingredients for the flavour and fragrance and cosmetics industries.
DSM will acquire the business currently consisting of seven intermediate products (four already generating meaningful sales and EBITDA, two just launched and one under development) which will be added to DSM’s existing Personal Care & Aroma Ingredients activities.
DSM will acquire the business for an upfront consideration of US$ 150 million, which represents an estimated 15x EV/EBITDA 2021 multiple. Amyris will share in the EBITDA growth over the period 2021-2024 of certain of the activities (mainly the products just launched/ under development), receiving additional earn-outs equal to 9x the realized EBITDA in 2024, which is estimated to result in a total earn-out amount of US$ 100-150 million. DSM and Amyris will continue their R&D partnerships.
In recent years DSM acquired Amyris’ Farnesene business and technology for nutritional and F&F ingredients, as well as its Brotas (Brazil) biotechnology manufacturing facilities. DSM has been producing several F&F products for Amyris in this facility. Acquiring now the entire F&F business from Amyris is synergetic for DSM as it:
Further strengthens DSM’s globally-leading biotechnology base with F&F intermediate products and increases the scale of DSM’s biotechnology activities in nutritional ingredients;
Broadens DSM’s existing offerings in Aroma Ingredients with additional biotechnology-based products for DSM’s – already existing – F&F customer base;
Strengthens DSM’s sustainability profile further, as bio-based F&F ingredients offer additional alternatives to chemistry-based products as well as botanically-sourced ingredients.
Symrise AG reliably continued its profitable growth course in 2020 despite the challenging environment. The Group increased its sales by 3.3 % to € 3,520 million taking into account portfolio and currency translation effects. In organic terms, sales went up by 2.7 %. The Group thus significantly outperformed market growth, which is estimated at 1.0 % for 2020. At the same time, Symrise stayed behind its defined sales target, as the business development in the month of December was impacted by a criminal cyber-attack. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose by 5.8 % to € 742 million in 2020. Profitability reached an outstanding level with an EBITDA margin of 21.1 % and was within the expected margin range. Against the backdrop of the good performance, the Executive Board and the Supervisory Board propose a dividend increase to € 0.97 for the fiscal year 2020 to the annual general meeting.
With no calories, no sweeteners and all smiles, bubly bounce is the perfect afternoon refreshment, offering five delicious new combo flavours and 35 mg of caffeine per 12oz. can
Bubly sparkling water introduced the launch of bubly bounce – a sparkling water with no calories, sweeteners, or artificial flavours, and just a kick of caffeine. The introduction of bublybounce, which is availablein the US in five refreshing combo flavours, marks the brand’s first caffeinated beverage and new line since its launch in 2018.
bubly, one of the fastest-growing brands in the sparkling water category1, now combines everything people already love about bubly, with 35 mg of caffeine. bubly bounce provides hydration with a little caffeine, the perfect refreshment to get you through the afternoon or you know, just tackle Mondays.
“bubly sparkling water was created to bring more smiles into the sparkling water category, and new bubly bounce takes it to the next level with caffeine,” says Zach Harris, Vice President, Water Portfolio at PepsiCo Beverages North America. “As more individuals seek out sparkling waters with added benefits, bubly bounce delivers all of the delicious flavour and hydration of the original, now with just a kick of caffeine.”
New bubly bounce sparkling water is available in five delicious combo flavours, including mango passion fruit, triple berry, blood orange grapefruit, citrus cherry and blueberry pomegranate. bubly bounce can be purchased at all major retailers, and online, and comes in a variety of convenient purchase options ranging from 16oz. single serve cans, to 24-packs of 12oz. cans. A 12oz. can of bubly bounce contains 35 mg of caffeine, while a 16oz. single serve can contains 47 mg of caffeine.
About bubly The bubly sparkling water brand is shaking up the sparkling water category with refreshing and delicious flavors, an upbeat and playful sense of humor, all while keeping it real with no artificial flavors, no sweeteners, and no calories. Each flavor of bubly and bubly bounce features bright, bold packaging, unique smiles for every flavor, and comes with its own witty greeting on the tab and personal messages on the can for maximum enjoyment and smiles. Just as love comes in all colors of the rainbow, bubly sparkling water is available in seventeen delicious flavors: blackberrybubly, limebubly, cherrybubly, grapefruitbubly, strawberrybubly, raspberrybubly, mangobubly, peachbubly, orangebubly, cranberrybubly, watermelonbubly, pineapplebubly, lemonbubly, applebubly, passionfruitbubly, blueberrypomegranatebubly, and whitepeachgingerbubly. bubly bounce is available in five refreshing combo flavors: mango passion fruit, triple berry, blood orange grapefruit, citrus cherry and blueberry pomegranate. no calories. no sweeteners. all smiles.™
1 IRI, 2020, US only
Summer arrives early with unveiling of unsweetened sparkling Lemon Limeade, Strawberry and Pink Lemonade from the first sparkling water brand made with real squeezed fruit
Lighter, brighter and even more refreshing, lemonade is reimagined as Spindrift®, the first sparkling water made with real squeezed fruit, puts its signature spin on this summertime favourite. Crafted with a uniquely balanced pairing of real squeezed lemons and limes, Spindrift’s Unsweetened Lemonade Sparkling Waters come in three twists on the classic. New Lemon Limeade, Strawberry and Pink Lemonade Spindrift flavours sparkle with 0 – 1 g of sugar, bold real fruit ingredients and a timeless delicious taste that embraces refreshment.
“We’re excited to introduce our newest flavour innovations to lemonade lovers and all of our loyal Drifters, who continue inspire our real-fruit sparkling water vision,” said Bill Creelman, founder and CEO of Spindrift. “Lemonade is a classic beverage enjoyed by all. But with concerns about health and diet at an all-time high, we challenged ourselves to reimagine what this traditionally sugary drink could taste like with a Spindrift spin—real ingredients, uncompromised taste and legible calories. Each Lemonade flavour has a distinct and unforgettable flavour profile that will blow people away and make them do a doubletake on the sugar content.”
In addition to the right combination of real fruit, which Spindrift takes considerable time to get just right, the sugar content in the new lemonade lineup is nearly nonexistent. With just 0 – 1 g of sugar in each can, the bold flavours of lime and lemon truly shine. The result is a new category of lemonade: unsweetened, sparkling with real ingredients and just 3 – 10 calories per can.
This is the first time that Spindrift, in its 10-year history, has introduced three flavours at once with a new line of sparkling water. The flavours include:
Lemon Limeade – Started with lemon, added a splash of lime and lightly carbonated for a deliciously healthy alternative to sugary beverages.
Pink Lemonade – with crushed cherries and raspberries, for a touch of sweetness. It’s Lemonade – but Pink.
Strawberry Lemonade – We started with Lemon and Lime and threw ripe, juicy strawberries into the mix. Together this trio makes for an unforgettable taste you’ll keep coming back to.
Spindrift Lemonade will be shared with the Spindrift Community first. Fans who’ve signed up to be a part of the Drifter Community by February 22nd will receive an email with a promocode for a chance to redeem a drinkspindrift.com exclusive, Lemonade 6 pack. Spindrift Lemonade will be available in March at Target stores in the US and through DrinkSpindrift.com.
About Spindrift Spindrift® is the first sparkling water made with real, squeezed fruit. Founded in 2010, Spindrift® celebrates simplicity, transparency, and the superior taste that only real ingredients can deliver. All products are free of added sweeteners or natural flavours, and only consist of water, just the right amount of bubbles, and real squeezed fruit – yup, that’s it. Spindrift® works with family farms to source the best fruit to make the fresh juices and rich purees they use. The result is light, bright, and flavour-rich sparkling water that tastes just like the fruit in its name. Varieties include: Pineapple, Lime, Blackberry, Cranberry Raspberry, Cucumber, Half Tea & Half Lemon, Grapefruit, Lemon, Orange Mango, Strawberry, and Raspberry Lime. Spindrift® sparkling water is available in the US at grocery retailers and café-style restaurants, including Trader Joe’s, Whole Foods Market, Starbucks, Kroger, Target, and online at Amazon and shop.drinkspindrift.com. Spindrift® was ranked #385 on Inc. Magazine’s 2017 list of fastest-growing companies. The company donates to environmental not-for-profits through their membership to 1 % For the Planet. Spindrift® is headquartered in Newton, MA. (US)
Symrise AG announces its sales figures for the financial year 2020 due to a special event end of last year. The Company achieved organic sales growth of 2.7 % which is slightly below the targeted range of 3 to 4 %. This is due to a cybersecurity attack in mid-December 2020, which temporarily caused significant disruptions to business operations. This one-time effect is reflected in the sales figures of the fourth quarter with an organic growth of 0.7 %. Meanwhile production processes have been restored globally. With respect to the profitability target, Symrise expects an EBITDA margin at the lower end of the guidance range of 21 to 22 %.
“Symrise maintained a very solid performance in a market environment impacted by the coronavirus pandemic. We were well on track until mid-December 2020 when we became the target of a criminal cybersecurity attack with blackmailing intent. It was out of question for us to give in. As a consequence, our business operations were at times severely restricted and we were therefore not able to fully achieve our growth targets. However, we follow a clear ethical compass and reject any form of criminal fraud or extortion. Although there were some delays in production and logistics, customers and business partners encouraged us in our position and we expressly thank them for that. Our business operations are meanwhile largely back to normal, and we are proceeding at high speed to clear the backlog of orders,” said Dr Heinz-Jürgen Bertram, CEO of Symrise AG.
Despite the heterogeneous market environment shaped by the global coronavirus pandemic, Symrise achieved organic sales growth of 2.7 % in 2020. Growth was impacted by the slower sales development in the month of December, which resulted from the cybersecurity attack. The fourth quarter recorded organic sales growth of 0.7 %. Excluding this one-time effect and based on a good sales performance in October and November as well as a robust order intake, Symrise would have achieved its original targets. Taking negative currency translation effects of € 152 million (- 4.5 %) into account, group sales in reporting currency amounted to € 3.521 billion (2019: € 3.408 billion). This represents an increase of 3.3 %.
Symrise remains confident that it will achieve an EBITDA margin at the lower end of the guidance range of 21 to 22 % for full year 2020.
The Company aims to increase its annual sales to € 5.5 to 6.0 billion by 2025. Symrise wants to achieve this with annual organic growth of 5 to 7 % (CAGR) as well as additional targeted acquisitions. In the medium term, profitability should remain within a target corridor of 20 to 23 %.
Effects of the cybersecurity attack largely remedied
The cybersecurity attack in December represented a criminal attack by unknown perpetrators with blackmailing intent. Symrise had immediately shielded its IT infrastructure and shut down essential IT systems after it had become aware of a cybersecurity attack in mid-December. In addition, the Company took comprehensive internal measures to counteract the attack and analyse the impact. Furthermore, Symrise immediately involved the relevant authorities and called in external forensic cyber experts.
Symrise AG has signed a purchase agreement with Sensient Technologies Corporation (Milwaukee, USA) to acquire their fragrance and aroma chemicals activities. These comprise a wide range of aroma molecules and fragrances from natural and renewable sources. In fiscal year 2019, the business unit generated revenues of approx. 77 million Euros. With the acquisition, Symrise will strengthen its backward integration and broaden its leadership position as a supplier of fragrance ingredients which are increasingly demanded for use, especially in personal and home care products. Symrise will furthermore gain access to additional customers and strengthen its presence particularly in EAME and Latin America. Going forward, Symrise plans to also strengthen its manufacturing footprint in Spain with targeted investments in the manufacturing site in Granada that will be acquired.
The Sensient fragrances and aroma chemicals business unit has been part of Sensient’s Flavors & Extracts group. The unit holds longstanding business relationships with local, regional and global customers from the consumer goods industry. It supplies out of manufacturing sites in Spain and Mexico. The Sensient aroma molecules and fragrance solutions are mainly derived from renewable raw materials such as pine oil and citrus by-products amongst others. The portfolio will strengthen the Symrise products line with unique fragrance ingredients used in application such as perfumes, shampoos, soaps, detergents and antiperspirants. Through the acquisition, Symrise will not only be able to significantly expand its renewable ingredients portfolio, but to also increase its green chemistry value chain which includes various downstream products coming from sustainable cultivated sources.
Symrise plans to combine the R&D competencies and manufacturing capacities of Sensient’s fragrance and aroma chemicals activities with parts of its own at the site in Granada. Over a period of three years, targeted investments will be made to grow the Granada site and make it the second largest compounding facility in EAME for fragrance ingredients and compounds.
Both parties agreed to keep the purchase price confidential. The transaction is subject to satisfaction of antitrust and regulatory approvals and other customary closing conditions.
Purpose built and designed with significantly more capacity, efficiency and data harvesting to drive growth
Treatt, an ingredients manufacturer and solutions provider to the global flavour, fragrance and consumer goods markets, has partnered with Siemens Digital Industries (DI) to build a world class digital manufacturing facility at its £41m new global headquarters.
Treatt’s purpose-built site in Bury St Edmunds replaces the existing complex in the town which has served as the company’s headquarters since 1971.
The new facility will bring together, under one roof, over 200 people in its science led distillation, manufacturing, logistics, technical and office-based functions in a once in a generation relocation upgrade to provide the scalable platform for further growth.
The factory will be controlled by Siemens SIMATIC PCS 7 system which will offer Treatt more data, flexibility, scalability, availability, safety, and security in its production process.
Crucially it will automate its entire production process, enabling Treatt to increase efficiency and productivity, consistency, reliability, throughput, and repeatability.
The new factory is built and designed to have significantly more operational capacity in an optimally designed production space.
Mark Higham, General Manager, Process Automation, Siemens DI, said, “It is important for us to work very closely with Treatt to ensure we deliver the best solutions for their new headquarters.”
Siemens SIMATIC PCS 7 distributed control system is a flexible and scalable platform which addresses the wide-ranging needs of the process industries. It has an open system architecture covering the entire production process ensuring the efficient interaction of all automation components in the factory.
Higham added, “Considering that Treatt is bringing all its functions of distillation, manufacturing and logistics operations under one roof then SIMATIC PCS 7 was a perfect fit.”
Some of the features of SIMATIC PCS 7 are its consistent approach to data management, the application of global standards, powerful and compact hardware and proven software libraries. These common features minimise the engineering overheads, reduce costs, shorten time to market and increase the flexibility of the plant.
Daemmon Reeve, Group CEO of Treatt said “As a science led innovator of ingredients designed to enable our customers to differentiate in the marketplace, we are excited to work with Siemens to drive a wide range of benefits into our world class manufacturing business.”
“Treatt sources a wide range of natural raw materials from supply partners around the world. As expected, nature provides variation in flavour profile from season to season and our job is to ensure consistency in the wide-ranging extracts we create for customers through complex distillation and extraction processes, so their beverages have the critical consistency in flavour profile.”
Treatt has a bespoke and dedicated analysis system which is now aligned and fully integrated with the Siemens SIMATIC PCS 7 system to capture the results and data for future use as the company drives into further areas of digitalisation for the business.
In addition, Siemens has won a three-year service contract to support the new production facility.
Bruce Sinclair, Engineering & Site Services Manager, Treatt commented “The three-year service support contract is necessary as our operations team will be reliant on the new control systems for increased and efficient productivity. It is essential for us that maintenance of the new systems remain at a high standard set by the suppliers of the technology for longevity and competence.”
Siemens has already begun providing support with upskilling Treatt’s employees to use the new systems and their instrumentation engineer has completed a two-week training course at a Siemens site.
“Moving to the new site will be beneficial for our operation and our customers will see very clearly how our science led, customer partnership model is transforming Treatt into a crucial partner for those customers wanting true authenticity in natural extracts to enable them to win, that is what motivates us” says Reeve.
Higham, added, “I am delighted that our projects team are partnering with Treatt to deliver this advanced control system which will provide the backbone for their production processes and support their digitalisation journey.
“With digitalisation, we help manufacturers become more agile, and provide tools for reducing operations costs whilst increasing efficiency and reducing time to market. In addition, our fully integrated safety and security concepts ascertain a safe production environment for employees and the facilities where they are deployed.”
Siemens has teamed up with a fully certified Process Instrumentation Approved Partner for the deployment of the full range of its instrumentation portfolio across all lines of production at the plant.
Jon Tayler, Director at Process Instrument Sales Ltd, commented: “Our strategy for Treatt was to provide a technically correct and commercially effective solution for the instrumentation requirements of the demanding process systems, whilst ensuring efficiencies, safe working practices and environmental criteria.
“Our long-standing relationship with Treatt, as their approved partner, meant that we are able to be an essential element of the Total Integrated Solution that Siemens promotes for seamless process control and monitoring, which is what the engineering team at Treatt have set out to achieve.”
As well as its UK operation Treatt has a manufacturing site in the USA and a sales office in China, with a network of agents throughout the world.
A Perfect Match Between Two Brands Shaking Up the Sparkling Water Category
SodaStream, the world’s leading sparkling water brand1, announces the upcoming launch of bubly drops, marking the first partnership for SodaStream in North America since joining PepsiCo. The new collaboration brings the beloved bubly™ brand’s bright flavours and bold personality to the SodaStream platform, enabling consumers to create their ideal customized beverages at home.
bubly drops will officially be available starting January 2021, but consumers can get their hands on an early release of the product beginning November 1st as part of a limited edition SodaStream Sparkling Water Maker Kit available at SodaStream.com and select online retailers. bubly drops for SodaStream contain no calories or sweeteners and will launch in six refreshing flavours bubly fans know and love: grapefruitbubly™, blackberrybubly™, limebubly™, strawberrybubly™, mangobubly™, and cherrybubly™.
“bubly drops are the perfect extension to our flavour offerings, tapping into one of the most rapidly growing segments of the sparkling beverage market: unsweetened flavoured sparkling water,” said Eyal Shohat, CEO of SodaStream. “The launch of bubly drops for SodaStream marks an exciting partnership between our two brands and reinforces our commitment to bringing consumers their preferred beverage choices that are better for them and better for the planet.”
“We’ve developed an incredible fan base, and by continuing to lean into the bubly brand’s playful personality, have quickly become one of the largest sparkling water brands in the category,” said Stacy Taffet, Vice President Water Portfolio for PepsiCo. “We are thrilled to join forces with SodaStream and bring our delicious flavour offerings to their incredible at home platform. In doing so, bubly will be the first sparkling water brand to ever be available in these two formats.”
bubly drops for SodaStream were developed through a collaborative effort between the PepsiCo and SodaStream research and development teams to ensure the amazing, high-quality taste consumers expect from bubly.
SodaStream and bubly share brand values rooted in playfulness and social good. With the launch of bubly drops for SodaStream, the two brands will offer consumers a fun, healthy and sustainable sparkling water option.
About bubly bubly is shaking up the sparkling water category with refreshing and delicious flavours, an upbeat and playful sense of humor, all while keeping it real with no artificial flavours, no sweeteners, and no calories. Each flavor of bubly sparkling water features bright, bold packaging, unique smiles for every flavour, and comes with its own witty greeting on the tab and personal messages on the can for maximum enjoyment and smiles. bubly sparkling water is available in fourteen bright flavours: cherrybubly, orangebubly, mangobubly, pineapplebubly, limebubly, applebubly, watermelonbubly, blackberrybubly, grapefruitbubly, strawberrybubly, raspberrybubly, peachbubly, cranberrybubly and lemonbubly. no calories. no sweeteners. all smiles.™
1Total global volumes taken from GlobalData’s Global Packaged Water Report 2018, compared with SodaStream company information.
IncuBev, a collaboration among four companies with significant beverage commercialization expertise, has been launched to help brand owners bring their beverages to market faster by offering a unique turnkey project management solution. The companies are harnessing their collective knowledge and expertise to dramatically accelerate pre-commercial activities including product development, package conceptualization, prototyping, and activation for consumer testing and concept validation.
The IncuBev alliance includes Haney, a Packaging Microfactory™; PTI, a leader in packaging development; Symrise, a leading global supplier of natural flavor and nutrition solutions; and Califormulations, a unique provider of beverage formulas and small-scale production for commercialization trials.
All four companies have experienced the challenges beverage brands encounter when trying to successfully navigate the choppy go-to-market waters. Not having the resources of larger brand owners, those entrepreneurs frequently don’t know where to go for answers or may not even know what questions to ask. By harnessing the critical functions of beverage formulation, package design, contract manufacturing and logistics under one alliance, the IncuBev family of companies hopes to remove those pain points and guide brand owners to successful brand introductions.
According to Paul Graham, President, Symrise Flavors NA, “What differentiates IncuBev is that collectively, we are a single source that provides the flavor, the packaging, the printing, and the filling. The result is a true end-to-end beverage development ecosystem, from innovation to commercialization.”
For brand owners facing the challenges of consumer testing and validation for their new beverages, line extensions and product improvements, IncuBev’s multi-phase approach delivers speed, efficiency, focus, and agility from expert sources with a proven track record of commercialization solutions.
About Haney Haney is the world’s first Packaging Microfactory™, designed to connect innovation with the accelerated production of small-batch, consumer usable product samples for retail and e-commerce programs.
About Symrise Symrise is a global supplier of fragrances, flavors, food, nutrition and cosmetic ingredients. Its clients include manufacturers of perfumes, cosmetics, food and beverages, pharmaceuticals and producers of nutritional supplements and pet food. Its sales of approximately € 3.4 billion in the 2019 fiscal year make Symrise a leading global provider. Headquartered in Holzminden, Germany, the Group is represented by more than 100 locations in Europe, Africa, the Middle East, Asia, the United States and Latin America. Symrise works with its clients to develop new ideas and market-ready concepts for products that form an integral part of everyday life. Economic success and corporate responsibility are inextricably linked as part of this process. Symrise – always inspiring more.
About Califormulations Califormulations provides a fresh approach to food and beverage product development, using a unique innovation approach that is designed for speed, agility, flexibility and focus. Califormulations offers complete, end-to-end beverage innovation services that include consumer insights, prototyping, piloting, scale-up, packaging and more, all from a single source, with full project management. Founded in 2019, Califormulations is headquartered in Columbus, Georgia, and has over 100,000 s.f. of laboratory, production and office space.
About PTI PTI is recognized worldwide as the preferred source for preform and package design, package development, rapid prototyping, pre-production prototyping, and material evaluation engineering for the plastic packaging industry.
Pure Piraña, developed with all-natural flavours, enters Mexican & New Zealand markets
HEINEKEN is exploring the Hard Seltzer category with the launch of Pure Piraña in Mexico and New Zealand. It will be available in a choice of up to nine different flavours, enabling HEINEKEN to test local preferences and investigate the potential of a rapidly growing category, whilst also exploring additional market introductions into this category.
Pure Piraña demonstrates HEINEKEN’s commitment to crafting new taste profiles in line with consumers’ ever- changing demands. Containing fewer than 100 calories per 330 ml can and made with all-natural flavours, the new beverage is aimed at a modern generation of consumers who are increasingly conscious of their consumption habits and lifestyle choices.
Jan Derck van Karnebeek, Chief Commercial Officer at HEINEKEN said: “Innovation is embedded in everything we do at HEINEKEN, which is why we continuously use our expertise to create new and exciting taste experiences for consumers. We are seeing more and more people look for a low-calorie alcoholic alternative and the result is the rapid growth of the Hard Seltzer category. The launch of Pure Piraña offers a way for us to meet customers’
evolving needs and explore a new growth opportunity for our business.”
Pure Piraña is a refreshing mix of carbonated pure mineral water, a dash of natural fruit flavours and contains 5 % alcohol. The result is a Hard Seltzer that is low in carbs, low in sugar, low in calories and is also vegan-friendly. Pure Piraña will initially launch in Mexico, one of HEINEKEN’s largest markets, in Grapefruit, Peach and Red Fruit flavours, and in Raspberry and Lime in New Zealand.
Pure Piraña joins HEINEKEN’s portfolio of more than 300 global and local brands.
Symrise very successfully continued its profitable growth course in the first half of 2020 also during the global coronavirus pandemic. The Group increased its sales by 7.6 % to € 1,821 million in an economically challenging market environment. In organic terms – i.e. excluding the portfolio effect of the ADF/IDF acquisition and exchange rate effects – sales were up by 3.4 %. All segments contributed to this positive development. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 11.9 % to € 393 million as compared to the previous year’s level normalized for acquisition and integration costs for ADF/IDF (H1 2019: € 351 million). Profitability developed particularly well: The EBITDA margin rose to 21.6 % and lies thus significantly higher than the profitability target for 2020. The net income for the reporting period increased to € 169 million. Against the backdrop of the strong business performance and profitability trend in the first half of the year, Symrise is raising its full-year EBITDA margin guidance from 20 % to a range of 21 to 22 %.
Dr Heinz-Jürgen Bertram (Photo: Symrise)
“In the second quarter the coronavirus pandemic began to significantly impact the global economy and above all many people’s everyday lives. Even in this historically exceptional situation, Symrise has done an excellent job of staying on course. Thanks to our global presence, diversified portfolio and broad customer base, our feet rest very firmly on the ground. We remained fully operational in the second quarter and were able to supply our customers in the usual reliable manner,” said Dr Heinz-Jürgen Bertram, CEO of Symrise AG. “Of course, it is hard to predict the course of the coronavirus pandemic. However, after our performance in the first half of the year, we are looking ahead to the second half with confidence. For the full fiscal year 2020 we again want to grow faster than the market and expect that we will achieve increased profitability overall. We are therefore raising our guidance for the EBITDA margin to a range of 21 to 22 %.”
With coronavirus pandemic ongoing, continued growth in all segments
The Symrise Group achieved sales growth of 7.6 % in the first half of 2020 to € 1,821 million (H1 2019: € 1,692 million). The acquisition of ADF/IDF had a positive impact of € 106 million on sales performance. In organic terms, sales increased by 3.4 %. Amid the coronavirus pandemic, changes in consumer behavior were seen for the first time in the Scent & Care and Flavor segments in the second quarter. This resulted in both positive and negative effects on demand in individual business units. With its broad range of product solutions for foods, personal care and hygiene, Symrise serves the needs of everyday life, especially in these difficult times.
The Flavor segment
Flavor achieved organic growth of 0.6 % in the period under review. Taking currency translation effects into account, segment sales in the reporting currency amounted to € 636 million (H1 2019: € 637 million). Against the backdrop of the coronavirus pandemic, the trend toward cooking and eating at home led to a strong demand for products from the Savory business unit and product solutions for baked goods and cereals. At the same time, reduced out-of-home eating and drinking led to a lower demand for beverage products and sweets.
In the EAME region, the Flavor segment suffered from significantly reduced demand for beverage products and sweets, while the Savory business unit recorded a high single-digit growth rate. Germany and the Gulf region achieved the strongest gains. Overall, sales in the EAME region remained slightly below the figure for the first half of 2019.
Organic sales in North America were roughly on par with the same period of the previous year. While Savory product solutions enjoyed great demand, beverage products and sweets sold less.
The Asia/Pacific region reported organic growth in the single-digit percentage range, driven primarily by very strong demand for products from the Savory business unit, which showed organic growth in the double-digit percentage range. The largest increases came from the national markets of Indonesia, Thailand, Vietnam and Singapore.
The Latin America region achieved the strongest growth in the segment in the first half of 2020 and was largely unaffected by the coronavirus pandemic. All business units realized high organic growth in the single or double-digit percentage range. Strong gains were posted especially in the national markets of Brazil, Uruguay and Mexico.
The EBITDA of the Flavor segment was up 2.2 % to € 147 million (H1 2019: € 144 million). The EBITDA margin improved from 22.6 % in the first half of 2019 to a very strong 23.2 %, mainly due to tight control on costs and proportionally lower raw materials costs.
The Nutrition segment
Nutrition achieved strong organic growth of 10.5 %. Accounting for portfolio and currency translation effects, sales in the reporting currency amounted to € 474 million and were 38.1 % above the previous year’s level (H1 2019: € 343 million). ADF/IDF contributed sales of € 106 million.
The Pet Food business unit proved to be the growth driver of the segment, achieving high organic growth in the double-digit percentage range in all regions. Sales developed particularly dynamically in the USA, Mexico, Brazil and Russia.
In the Food business unit, the Asia/Pacific region stood out with double-digit growth, especially in China, India and Taiwan. In the EAME region, sales matched the previous year’s level, while North and Latin America dropped slightly below the last year.
Strong impetus came from the Aqua business unit, which achieved good growth especially in the EAME and Asia/Pacific regions.
Probi reported growth in the single-digit percentage range during the reporting period, primarily driven by the North America and Asia/Pacific regions.
The Nutrition segment generated an EBITDA of € 100 million in the reporting period (H1 2019 EBITDA(N): € 67 million). The EBITDA margin in the segment increased by 1.5 percentage points to 21.0 % (EBITDA(N) margin H1 2019: 19.5 %). The improved profitability is mainly due to the good performance of Pet Food and the inclusion of ADF/IDF.
Operating result
Also within the challenging environment dominated by the coronavirus pandemic, Symrise was highly profitable in the first half of 2020. The Group recorded EBITDA of € 393 million. This represents an increase of 11.9 % over the same period a year earlier. This trend relates primarily to profitable sales growth and the inclusion of ADF/IDF. The EBITDA margin improved by 0.8 percentage points to 21.6 % (EBITDA(N) H1 2019: 20.8 %).
Net income for the period and earnings per share
Net income for the reporting period amounted to € 169 million, which was € 16 million above the normalized figure from the previous year of € 153 million. Basic earnings per share increased 10 % to € 1.25 after € 1.14 (normalized) in the first half of the previous year.
Cash flow from operating activities
The cash flow from operating activities for the first half of 2020 of € 219 million was € 78 million higher than the previous year’s level of € 141 million. The increase is mainly due to the improved operating result and the inclusion of ADF/IDF.
Financial position
Net debt increased by € 28 million to € 1,645 million compared to the reporting date of 31 December 2019. The ratio of net debt including lease liabilities to EBITDA(N) thus amounted to 2.2. Including pension obligations and lease liabilities, net debt equaled € 2,261 million, which corresponds to a ratio of net debt to EBITDA(N) of 3.0.
Symrise remains confident about the current fiscal year and raises EBITDA margin target
With its global presence, a steadily growing and diversified portfolio and broad customer base, Symrise considers itself to be robust and securely positioned even in the current challenging market environment. The Group is fully operational worldwide and is able to supply customers sustainably.
Even though the effects of the pandemic can only be estimated to a limited extent, the Group remains confident that it will again grow faster than the relevant market over the remainder of the year. The market growth is estimated to be around 3 to 4 %. Symrise considers itself to be well positioned to achieve the sales targets confirmed at the beginning of 2020.
Based on the strong business performance and profitability trend in the first half of the year, the Group is raising its original target of over 20 % for the EBITDA margin. For the 2020 fiscal year, Symrise now expects an EBITDA margin in the range of 21 to 22 %.
The mediumterm targets also remain in effect. The company aims to increase its annual sales to € 5.5 to € 6.0 billion by the end of the 2025 fiscal year. Symrise wants to achieve this with an annual organic growth of 5 to 7 % (CAGR) as well as additional targeted acquisitions. In the medium term, profitability should remain within a target corridor of 20 to 23 %.
The Symrise Group remains on track for growth in the fiscal year 2020. In the first quarter, sales were up by 8.0 % to € 917.1 million (Q1 2019: € 848.8 million). All segments contributed to this positive development and posted gains despite the challenging global economic conditions under Covid-19. In organic terms, sales were up 2.3 % after strong comparative figures in the prior-year quarter.
“The Covid-19 pandemic is proving a tough test for the global economy. Symrise has put measures in place at all of its locations to provide employees and partners with optimal protection against the virus. We continue to be fully operational and are making every effort to supply our customers with the reliability they are used to. In this context, our employees’ flexibility and enormous commitment play a decisive role,” said Dr Heinz-Jürgen Bertram, CEO of Symrise AG. “This crisis again underscores the resilience and balance of our business model. With our broad range of product solutions for foods and beverages, personal care and hygiene, we serve especially in these times the needs of everyday life. In addition, we are demonstrating social responsibility by using our technological skills and resources to produce disinfectants by the ton and deliver them free of charge to municipalities for use in public institutions.”
Flavor grows with savory products and beverage applications
In the Flavor segment, which supplies flavor ingredients for foods and beverages, sales increased by 2.2 % to € 322.6 million (Q1 2019: € 315.6 million). Adjusted for exchange rate effects and after a strong prior-year quarter, organic growth in the segment amounted to 1.6 %.
In EAME, the highest growth rates were recorded in applications for beverages and savory products, especially in the national markets in Germany, Eastern Europe, the Middle East, and South Africa. Sales in applications for sweets were slightly below the prior-year quarter.
In the Asia/Pacific region, sales growth in the beverages application area was in the high single-digit percentage range and reached even double-digit growth rates in savory applications. The national markets of Singapore, Indonesia, Vietnam and Bangladesh developed particularly pleasing. By contrast, the currently weaker demand in China had a negative impact on the overall positive regional development.
In North America, the application areas for beverages and sweet products were slightly below the strong prior-year level. The savory business achieved solid growth with regional and global customers.
Business in Latin America developed very dynamically and achieved high single-digit percentage growth for sweet products. At the same time, sales for beverage and savory products grew in the double-digit percentage range. Demand for beverage application products was particularly strong in the national markets of Brazil and Uruguay.
Confident for the current fiscal year
Symrise continues to be fully operational worldwide and has sustained supply capability. Due to its global presence, its expanded portfolio and broad customer base, the Group considers itself to be robust and reliably positioned even in this demanding market environment. Symrise expects that the Covid-19 crisis will temporarily change consumer behavior in parts and lead to a shift in the portfolio. A large number of the products that are currently in greater demand address essential daily needs in connection with nutrition, personal care and hygiene.
After a solid start into the year, Symrise remains confident for the current fiscal year. While the development and impact of Covid-19 is difficult to assess at present, the Group continues to expect to grow faster than the relevant market, supported by the very diversified competencies, in the course of the year.
The longer term goals until the end of 2025 remain in effect. Symrise aims to increase its sales to
€ 5.5 – € 6 billion. The Company intends to achieve this increase through annual organic growth of 5–7 % (CAGR) and additional targeted acquisitions.
The iGeneration (also known as Gen Z) is the name given to people born between 1995-2007, following Generation Y. The “i” represents the technology that this generation has grown up with, for example, iPhone, iPod, Wii and iTunes.
Digital Dilemma
The iGeneration are known to consume large amounts of media on a daily basis, averaging between six and nine hours. They use social media such as Facebook, Twitter, YouTube, Instagram, Pinterest and Snapchat as information sources and a way to connect with brands.
Growing Purchasing Power
As this generation graduate from school and college, they begin to have a growing purchasing power, and by 2020, they will account for 40 percent of the consumer market. Influenced by their level of control, identities and globalization, these behaviours and characteristics are shaping the beverage industry, as they look for products to improve their physical and emotional health, as well as helping the environment.
Teetotalism
This digitally-connected generation are more concerned over safety, taking fewer risks and drinking less alcohol than former generations. In comparison to previous generations, the iGeneration have become conscious of what they put in their bodies. This is driving the explosion of variety in low alcohol or no alcohol alternatives on the supermarket shelves.
This is driving the explosion of variety in low alcohol or no alcohol beverages on the supermarket shelves, driving the desire for more sophisticated drinks. Mocktails are becoming more inventive with savoury and spicy notes, appealing to the iGeneration’s broad and adventurous palates. The iGeneration are one of the most ethnically diverse groups and therefore more receptive to ethnic flavours, driving an appeal towards botanical-infused drinks.
Better-for-you
This generation have been educated to make healthier choices, particularly around ever-growing concerns over the consumption of sugar. With CSD’s in decline, bottled and flavoured water has noticeably increased as a replacement, along with cold brew coffees and teas, with more innovative flavours and ingredients.
Transparency is also valued, leading to a higher number of clean label claims. According to Global Data’s study in 2018, 42 % of iGeneration “are often or always influenced by how ethical, environmentally friendly, or socially responsible a product is in the following sectors” in comparison to only 28 % from the silent generation.
Healthy Grab-and-Go
The iGeneration are revolutionising the eating experience. Convenience has become key to meet on-the-go lifestyles and creating grab-and-go convenience opportunities for not just meals, but snacks and beverages. As told by Global Data, “Gen Z and Millennials are most likely to use out-of-home services on a regular basis compared with older age cohorts.” They often prefer to stay at home and use technology to get a food delivery.
According to a study by the International Foodservice Manufacturers Association (IFMA) and the Centre for Generational Kinetics, 24 % of the iGeneration order a takeout three or four times in a typical week, exceeding any other generation. It is worth noting that these deliveries are mostly healthy in order to keep up to go with their on-the-go lifestyles. As told by Tufts Nutrition, 41 % of Gen Z say they would spend more on foods they perceive as healthier, in comparison to only 32 % of millennials and around 21 % of baby boomers.
Symrise has inaugurated its Creative Center in Egypt on November 26, 2019. The subsidiary in the outskirts of Cairo comprises modern development and application laboratories for the categories Beverages, Confectionery, Dairy, Culinary and Snacks. Dirk Bennwitz, President Flavor EAME at Symrise, officially opened the new facilities. They meet the company’s global technology and development standards and are intended to strengthen the company’s reach in the AME region and its collaboration with strategic customers. Partners, customers and guests attended the ceremony.
Symrise has equipped its development and application laboratories with state-of-the-art technology. Within the Creative Center, employees will develop customized product solutions and applications and adapt existing products for the market. Compared to its facilities so far, the new creative center offers a number of advantages. Modern consumer and market analysis and quality assurance procedures guarantee authentic and relevant products for customers and consumers in the region.
“By investing in the new Creative Center, our strong team of food technologists and flavorists can make a significant contribution to the growth in the region in the future,” says Dirk Bennwitz, President Flavor EAME at Symrise. “We are convinced of the strategy, because our location in Cairo offers us proximity to customers and markets in Africa and the Middle East. In the future, we will be able to better serve demand in the region and optimally align our business with our customers, thus contributing to the company’s growth.”
Customers benefit from tailor-made developments
In the future, the Symrise team will have access to all the technologies and innovations available in the Group in the Creative Center. This will make it easier to meet customer demand. In addition, customers benefit from knowledge of the region and the increased use of local raw materials. This helps to meet the diverse wishes of consumers. Another advantage is that Symrise can work with its customers in a time- and cost-efficient manner.
“We use a wide range of manufacturing technologies in Egypt to supply all of Africa and the Middle East,” says Ibrahim Wagdy, responsible Managing Director of Symrise in Egypt. “We are now expanding these capacities with our modernized site thereby increasing the attractiveness for our customers in the region.“
Egypt is an important location for Symrise. On the one hand, because the country’s location in the AME region makes it easy to exchange information with customers from Africa and the Middle East. On the other hand, the industrial and agricultural infrastructure provides valuable advantages for the production and development of flavors for the local market.
