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.
Like apple. Says esarom, the Austrian producer of flavours and compounds and makes us curious to get to know more about the trendy taste for 2020.
esarom has created an extensive apple portfolio which goes beyond the actual fruit: On the one hand there is the delicate apple blossom, on the other hand the harvested and already processed apple in the form of cider, apple spirit, apple pie or baked apple.
There are flavours where the character of individual apple varieties like Gala, Golden Delicious or Granny Smith is in the foreground, but you can also enquire for profiles like juicy-sweet, crispy-fresh or sour-tangy.
It is astonishing how diverse in taste a fruit can be which has become for us an everyday product.
Originating from real fruit and apple juice of different apple varieties nature identical flavours have been created orientating on those taste profiles. The flavour profile depends on the wishes of the beverage producer and also includes natural flavours which are suitable for organic products.
Considering the current food trends esarom has been right to choose the apple as trendy fruit. The apple being at home in more than 100 countries of the world, the apple has been the cosmopolitan among fruits and at the same time almost everywhere a local fruit – thus the taste of the apple fits perfectly to concepts which focus on local fruits. Every child is familiar with the saying “an apple a day…” and it also reflects the healthy image of the apple. Consistent: products which focus on the trendy topic Health & Wellbeing and taste like apple. The taste of apple has been a timeless taste which has always been there and still is a top taste. Among the world-wide beverage launches of the last two years together with orange and lemon it has been among the top 3 flavours.*
The curious consumer who likes to try out new things – the trend scouts of Innova speak of Adventurous Consumer, top Trend Number One 2019 – would like to be surprised and rewards interesting concepts with a Like which combine familiar and popular aspects and are enriched by unexpected flavour notes.
The apple is a sociable fruit and goes well with many fruits like with the popular botanicals. This results in classical products with a trendy twist which have potential that they are liked by many – consumers and producers alike.
The esarom apple portfolio enables to offer with the fruit apple alone to offer a diversity of seasonal products for an entire year: in spring an energy drink with apple blossom awakens the spirits of life, a water-based apple drink with the taste of the variety Braeburn serves as a thirst quencher in the hot summer months. Autumn is the time of the cider – there are cider notes from sweet to tangy in an alcohol-free soft drink for the Young Urbans. When winter begins Hygge is the motto and baked apple is the taste of the season.
* Source Mintel GNPD
By acquiring Isobionics, an innovation leader in biotechnology which is serving the global market for natural flavors and fragrances (F&F), and through a cooperation agreement with Conagen, a leader in biotechnology research, BASF enters the market for natural F&F ingredients. Being known as a leading supplier of synthetic aroma ingredients, the company now broadens its portfolio with natural ingredients such as vanillin, nootkatone and valencene. BASF intends to advance the technology for biotech-based aroma ingredients by combining its own R&D excellence and broad market access with the know-how and expertise of Isobionics and Conagen.
“Reflecting the potential of changing consumer habits and the scarcity of natural ingredients, the strengthening of our biotechnology footprint is at the heart of BASF’s strategy,” says Melanie Maas-Brunner, who leads BASF’s Nutrition & Health division.
Acquisition of Isobionics
“The Flavor & Fragrance industry is experiencing an increasing need for natural ingredients,” says Julia Raquet, who heads BASF’s Aroma Ingredients business. “But fluctuating product quality, availability and sustainability are constant challenges for our customers. By entering the market with biotechnology-based aroma ingredients, we intend to provide our customers with high-quality products to respond to the current market challenges.”
“BASF is known for its high-quality standards, traceability and excellent regulatory know-how,” says Toine Janssen, founder of Isobionics. “By combining our biotech-based product portfolio and strong development pipeline with BASF’s expertise and its global market reach, we can provide the natural aroma ingredients market with even more innovations – and boost our growth.”
Isobionics is a biotech-based aroma ingredients company, located in Geleen, the Netherlands. The company develops and produces a wide range of natural ingredients for the F&F market with a focus on citrus oil components such as nootkatone and valencene. Isobionics, with all its employees, will become part of BASF’s Aroma Ingredients business.
Cooperation agreement with Conagen
Besides acquiring Isobionics, BASF signed a cooperation agreement with Conagen, a research leader in the field of biotechnology. Through this partnership, BASF will be able to serve the market with natural vanillin, one of the aroma ingredients with the highest market demand.
The natural vanillin that BASF initially markets is based on ferulic acid sourced from rice and therefore named Natural Vanillin F. With its clean vanillin character, Natural Vanillin F is ideal for all flavor applications, such as chocolate, strawberry and caramel, while maintaining an “all-natural” labeling.
Conagen has strong R&D and commercialization capabilities for fermented ingredients. Fermentation is an ancient cultural technique well known from processes like brewing beer and baking bread. It uses microorganisms like e.g. bacteria or fungi to convert one substance into another.
BASF’s Nutrition & Health division furthermore recently established a global business unit dedicated to the research and production of enzymes, which can be used as natural processing aids or ingredients for a large variety of applications in food, feed and technical industries.
For the first time in its corporate history, Symrise is setting up its own application labs in Nigeria. The global fragrance and flavoring manufacturer based in Germany will open the new facilities in Lagos, the largest city in the West African country, on September 4, 2019. “This will strengthen our presence and underpin our growth goals in the region,” says Rudy McLean, managing director at Symrise South Africa, building on the current sales office in Nigeria.
In the labs, local Symrise experts will work on flavors for various application areas, in particular for beverages, sweet applications and savory foods, as well as fragrances and cosmetic ingredients. The company wants to meet the preferences of regional customers as closely as possible with this local expansion. “With these application labs, we can create products in the market for the market,” says McLean. “We can deepen our understanding of the preferences and needs of local people and – where possible – use local raw materials.”
The history of Symrise is closely connected with Nigeria. With its Scent & Care and Flavor & Nutrition segments, the company has been active in the African country for more than 30 years. During this time, Symrise has worked intensively to familiarize itself with the local markets. Beyond this, the local team has built close and lasting relationships with customers. The goal of the new application labs is to incorporate customer preferences and market requirements in product development locally and with speed. To achieve this, Symrise will employ three new lab specialists in Nigeria.
With more than 190 million inhabitants, Nigeria is by far the most populous African nation and a key regional economy. “With this new investment, we are enhancing our local footprint and intensifying our long-term commitment to Nigeria and the region,” says McLean.
Sensient Flavors presents its 2019-2020 ‘Trends to Taste’ report
Sensient Flavours presents a new collection of ‘Trends to Taste’ flavours. The range of six state-of-the-art flavours is based on the company’s latest insights into consumer interpretations of the past, present and future. The flavours not only give final applications a new aromatic kick; but also inspire insight and achievable innovations that can help narrow the gap between a brand and its consumers.
Where does the story of your product belong – the past, present or future? By addressing this question, Sensient Flavors is offering food and drink manufacturers the latest insights into consumer attitudes. Published annually, the ‘Trends to Taste’ forecast encompasses the company’s syndicated research and horizon-scanning capabilities in pursuit of one clear goal ̶ capturing the latest consumer trends and transferring them into a flavoursome, aromatic language.
Its team of flavourists has examined current consumer perception of past, present and future times. For each dimension, they identified both positive and negative feelings, which are strong drivers of consumer behaviour. By turning these insights into a flavour collection, the company has created six avant-garde offerings that mirror specific consumer attitudes to each time dimension, and help drive stronger product performance in the marketplace.
Engaging the past
While some of us associate the past with positive feelings of nostalgia, stability and comfort, others use yesteryear to make changes to their future. To reflect the emotions of the former, Sensient Flavors has developed a new variation of Poudre Douce – a warm and comforting medieval spice blend for use in various foods from roasted meats to bakery items. By contrast, Romeu e Julieta ̶ a flavour combination of traditional tropical fruity guava paste and subtly sweet cheese ̶ was designed to create both a new sensory experience, as well as acknowledge the feelings of the latter group of consumers.
Controlling the present
More and more people consider the modern world to be immersive – an interactive experience to be explored. For these shoppers, the flavour expert presents the aroma of Timut Peppercorn – a plant highly appreciated by Himalayan natives for its versatile properties. Characterized by peppery notes in combination with zesty fruit aromas, it helps create tailored products that tap into interactive indulgence.
However, there are also an increasing number of people who are rather overwhelmed by today’s multi-sensorial stimulation. For this group, Chocolate Toadstool with deep earthy umami and decadent chocolate notes helps create authentic products to satisfy a taste for diversion and escapism.
Imagining the future
Today, future visions of a near-perfect society sit alongside dystopian predictions that necessitate a return to a simpler existence, and regionally focused eating. In addressing the utopian idea, Sensient Flavours embraces the ancient description of utopia as a land of “milk and honey”, where honey means the sweetness of dates. Against this backdrop, the manufacturer presents Silan – a harmonic combination of brown dates with a slight bitter edge tempered with creaminess.
Acknowledging the dystopian vision, the flavour company presents Fermented Yaupon, reminiscent of roasted tea enhanced with floral notes. As North America’s only caffeine-containing plant, Yaupon promises a natural caffeine buzz and, thanks to fermentation – an age-old process used in the preservation of food and beverages – this offering also has a slightly sour edge.
The beverage sector has undergone a significant transformation over the past decade in line with changing consumer preferences.
Sumit Chopra, Consumer Research Director at GlobalData, a leading data and analytics company, highlights six major innovation trends that are set to impact the production, marketing and sales of the beverage sector in Asia-Pacific (APAC) in 2019.
Unusual ingredients and featured flavors
GlobalData’s 2018 Q4 Consumer Survey found that 17 % of consumers in APAC often like to experiment with novel ingredients, creating opportunities for manufacturers. For instance, India-based urban lifestyle beverage brand Zago launched Iced Masala Chai, which offers a ‘refreshing’ twist to traditional ready to drink teas infused with traditional aromatic flavors such as cardamom and ginger.
Authentically indulged
According to GlobalData’s 2018 Q4 Consumer Survey, around 40 % of APAC consumers are willing to pay more for better quality beverages. Against this backdrop, beverage manufacturers are aiming to create an authentic brand image to foster consumer trust and loyalty. In Australia, Podpac is offering new coffee pods under the Baileys trademark in order to give coffee drinkers a premium indulgence that is marketed under an alcohol brand name.
Revitalized & balanced
GlobalData’s 2018 Q4 Consumer Survey highlights that 65 % of consumers in APAC are always or often influenced by how a product impacts their health and wellbeing while making their consumption choices. Against this backdrop, beverage companies are mapping out the wellness considerations for the products they are offering to attract a niche market of specialists such as sports enthusiast and athletes, whilst also appealing to the mainstream of active lifestylers. For example, Applelachia launched a sparkling apple cider drinks range that incorporates foreign ingredients like Yuzu, a citrus fruit used as a tonic by samurais to boost their immune system, in Australia.
Packaging formats
GlobalData’s research reveals that APAC consumers prefer small single-serve pack sizes and seek out new products packed in PET and small metal cans, reflecting the overall emerging trend in the region towards on-the-go consumption. For instance, Locally Merci Buco 100 % organic coconut water in a 330 ml tetra pack variant bagged a packaging excellence award for an innovative PET squeezable bottle in 2019 in the Philippines, as it catered to the strong association between energy drinks and on-the-go consumption.
Sugar war raging
Beverage companies need to be ready for the likelihood of stringent regulations, as the governments across the region are exercising more power, particularly around issues such as obesity and consumer welfare. Malaysia’s Ministry of Health is all set to impose a sugar tax on sugar-sweetened beverages from 1 July 2019. Against this backdrop, key beverage brands are reformulating their portfolios. For instance, Malaysia-based Fraser & Neave (F&N) Holdings Bhd is looking to reformulate 70 % of its products to mitigate the sugar tax impact.
Moderation & avoidance
Consumers are increasingly becoming health-conscious and proactively addressing their health issues by curbing alcohol indulgence. Manufacturers are therefore striving towards offering zero alcohol beverages with healthy ingredients. Heineken’s launch of new zero-alcohol beer Heineken 0.0 in Singapore fulfills the growing demand for non-alcoholic alternatives for evolving customers.
• CHF 120 million investment to enable collaboration, co-creation and innovation
• 12,000 square metre of workspace for 300 employees designed to LEED Gold standards
Givaudan, the global leader in flavours and fragrances, has officially inaugurated its new flagship Innovation Centre in Kemptthal, Switzerland, aimed to accelerate its global efforts in creating differentiated and sustainable flavour, taste and fragrance solutions for the food & beverage and beauty, personal and home care industries.
The CHF 120 million centre, the Company’s largest investment in research to date, is part of a global innovation ecosystem designed to leverage the Company’s broad expertise in flavours, fragrances, active cosmetic ingredients and natural solutions, and enables close collaboration and co-creation with its customers, partners and start-ups.
Gilles Andrier, CEO of Givaudan, said: “Building on our 250 years pioneering heritage, our new flagship centre is the latest example of Givaudan’s strong innovation culture. As the newest addition to Givaudan’s vast network of research and creation centres, the Zurich Innovation Centre will act as a key enabler to deliver breakthrough science and technology solutions for our customers while tackling the industry’s most pressing challenges.”
The centre provides over 12,000 square metres of inspiring co-creation, collaboration and innovation space for 300 employees, and integrates hosting for start-ups, labs and kitchen space providing a holistic customer experience on-site. Science and technology teams will benefit from innovative research capabilities in chemistry, biotechnology, biocatalysis, fermentation, flavour delivery technologies, sensory and application science. Creation and application related capabilities available at the centre include unique sensory and consumer insight tools and SPRINT fast prototyping methodology, to drive speed and efficiency in new solutions and enable the Company to predict and plan for future consumer trends.
As part of Givaudan’s sustainability approach, A Sense of Tomorrow, the building is one of the first facilities in Switzerland to receive a gold certificate from Leadership in Energy and Environmental Design (LEED), the world’s most widely recognised green building certification system. It fosters healthy, enjoyable and productive work through user-oriented workplace design that reduces water and energy consumption and improves environmental and economic efficiency by up to 45 %.
The official opening ceremony took place on 14 June 2019, in the presence of 130 participants including Martina Hirayama, State Secretary for Education, Research and Innovation, along with Givaudan’s executive management members, customers and partners.
Two out of three US consumers “love to discover new flavors’, while the same proportion say that ‘going out for dinner inspires their home cooking” (Innova Market Insights consumer survey 2018). Adventurous, daring and re-imagined flavors are emerging to entice trend-conscious consumers, who enjoy an element of the unexpected on their palates.
Flavor remains the number one factor of importance when buying food and beverages. An increasingly adventurous consumer creates opportunities for bolder, unconventional flavors and novel varieties that bring an element of surprise and the potential to create a social media buzz. Millennials and Gen Z in particular drive the trend of novel, creative, impactful foods with funky colors, shapes and flavors that are exciting to share through social media.
Globalization has sparked the curiosity of consumers to discover new food and beverage, with Innova Market Insights research indicating that three in ten US consumers ‘love to discover flavors of other cultures’.
Food and flavor trends are traveling faster than ever in today’s connected world. Consumers love to explore new flavors from different countries with and increasing range of ethnic flavors appearing across the board to satisfy culinary adventurers. Ethnic flavors proliferate, with sixty five percent growth in food and beverage launches with an ethnic flavor (Global, 2018 vs. 2014). Mediterranean and Far Eastern flavors are seeing the biggest growth in launch activity, with meat, fish and eggs and sauces and seasonings the leading categories.
People now travel the world and are connected online more than ever, getting increasingly familiar with other food cultures, flavors and experiences. To drive deeper connections with the adventurous consumer, brands satisfy their curiosity not only through exotic world flavors, but also new food experiences and telling the story behind the product. Consumers are increasingly engaged by interactive devices such as voting for favorite flavors, submitting their own flavor ideas and sharing flavor experiences with friends and/or online.
Brands also engage with consumers by telling the unique stories behind them, including greater transparency about the source and nature of their ingredients, recipes and processing. There is also rising use of limited editions to create a temporary buzz around brands, via novel and exciting flavors, shapes and concepts.
The calamondin is one of the most exciting new discoveries that tropextrakt has in store for its customers in 2019. Although it sounds like an exotic, unknown fruit right now, it has the potential to start a new taste trend in foods and beverages that can already be seen in the USA, for example. The calamondin, with its scientific name of “Citrofortunella microcarpa”, conceals powerful potential under its delicate peel with a great variety of flavours: sweet-sour and refreshing, it is reminiscent of mandarin orange, bitter orange, lime and pink grapefruit.
A wide variety of flavours for the food and beverage industry
“The unique flavour of the calamondin is perfect for exotic taste experiences and can make a subtle difference in many foods and beverages”, explains Ingo Kniepert, Managing Director of tropextrakt. “The calamondin, for example, corresponds perfectly with familiar ingredients like orange juice or vanilla.” The refreshing and sweet-sour nuances also develop very well in combination with grapefruit in soft drinks, alcoholic and non-alcoholic beers and many other drinks, including milkshakes. The juice is also suitable for fruity blends in dairy products, ice cream, marmalades, jams, fruit sauces and sweets. Its taste components also come into their own in dressings, chutneys and desserts. The calamondin harmonises well with apple, mirabelle and blackcurrant, and herbs and spices including cinnamon, peppermint and vanilla. Tropextrakt has tested these and other combinations in its own application lab, where special applications for customers in the food and beverage industry can be developed on request.
Year-round harvest – transparent production
The calamondin, a particularly small type of citrus fruit, is a hybrid between the mandarin orange and the oval kumquat. Externally, it resembles a lime, but is much smaller. Unlike other citrus fruits, the calamondin has a thin, delicate peel, which is why the fruit has to be cut from the tree by hand. tropextrakt obtains the unadulterated calamondin juice from Vietnam, where the fruits grow, are harvested and processed into pure calamondin juice in NFC quality all year round. “It’s very important to us that our products are left in their natural state, thus complying with the Clean Label standard”, says Kniepert. tropextrakt imports its raw materials from the producers themselves in order to be able to influence the corresponding quality and hygiene standards on site. Every batch can be traced back directly to one of the 500 family businesses with calamondin plantations. Additionally, the producer guarantees the fruit will be processed in accordance with ISO 2000 and the BRC Food and HACCP standards. Both the Vietnamese producer and tropextrakt are Sedex-certified and have made a commitment to sustainable supply chains. In doing so, tropextrakt also makes a contribution to the small plantations in Vietnam, where calamondin cultivation with controlled labour conditions helps in the fight against poverty.
Revolution Brands LLC announced it had begun accepting wholesale pre-orders for Slice – a new sparkling water flavoured only with USDA-certified organic fruit juices, organic flavors and carbonated water.
Intellectual property attorney Joseph C. Gioconda of the Gioconda Law Group PLLC represented New Slice Ventures in acquiring the federally registered trademark rights to the Slice brand. Spiral Sun Ventures, a seed capital fund that invests in early-stage companies that create better-for-you consumer products, has invested in New Slice Ventures.
Slice is now available in four flavours in 12-ounce cans: Raspberry Grapefruit, Blackberry, Mango Pineapple and Apple Cranberry. Slice will be sold by the 4-pack, but is also available in single serve cans.
Slice has no added sugar, no artificial sweeteners, no artificial colors or caffeine. Slice is only 25 calories per can which is up to 80% fewer calories than most regular cans of soda.
Mark Thomann, CEO of New Slice Ventures LLC, which now owns the Slice trademarks in the United States, said: “We are excited about the launch of Slice. Slice is a great brand and one that can connect with a new generation of consumers who want something a little healthier than soda, but just as delicious.”
Glenn Backus, a former executive with H-E-B, Trader Joe’s and Supervalu is with Revolution Brands, which handled the creation and launch of the new Slice. “We worked very hard to create an organic sparkling water that tastes amazing and has a sweetness much closer to soda than any other sparkling water on the market. Customers have asked for a healthier alternative to their usual soda, but traditional sparkling water brands lack the flavour they crave. So, we created the new Slice. Only 25 calories per can with a refreshing sweetness that everyone will love.”
Authentic florals, herbs, spices, tea and ginger flavours and extracts for contemporary product concepts
Global expert Sensient Flavors presents its All Natural Flavour Collections: The trend flavours help food and beverage manufacturers to respond successfully to upcoming market trends and reflect current consumer preferences. The latest findings of Sensient’s consumer and market research underpin Sensient’s new All Natural Flavour Collections, which are split into five key botanical areas: Florals, Herbs, Spices, Tea and Ginger. “As sophisticated consumers demand more natural, healthier options, and the chance to express their individuality, botanicals are making a comeback in the food and beverage world,” comments Barbara Lezzer, Director of Marketing Europe – Sweet and Beverage, Sensient Flavors.
Sensient’s Floral Collection offers spicy and herbaceous as well as delicate and sweet flavours for a multitude of applications, from cocktails and gin to confectionery and dairy. Jasmine, Chrysanthemum, Desert Wildflowers, Elderflower, Geranium, Rose and Lavender feature in the 10-strong line-up, alongside Orange Blossom, Cherry Blossom and Hibiscus.
Sensient’s Spice Collection adds a touch of natural sophistication and complexity. A modern twist places Black Pepper, Pink Peppercorn, Star Anise, Clove Bud and Saffron firmly in the beverage arena, while their inherent heat means that Cinnamon, Capsicum, Cardamom and Liquorice are the ideal way to add warmth to bakery and dairy. Completing this collection, Juniper Berry is perfect in meat-based savouries, and it even works brilliantly in beer.
Culinary herbs add naturalness and, from an aesthetic perspective, their delicacy catches the eye in cheeses and savoury snacks, soft drinks and cocktails. Sensient’s carefully curated Herb Collection comprises Garden Mint, Coriander Leaves, Sage, Rosemary, Hops, Oregano, Basil, Thyme, Lemongrass and Aloe Vera.
Tea is no longer a beverage to be had at a certain time of the day. Exciting new offerings have consumers reaching for tea in different forms and flavours around the clock. It is associated with sophistication and flair as well as with naturality and health. The ability of tea to offer rich, intricate profiles makes it the perfect way to add flavour and depth to everything from ice cream to chocolate and alcoholic beverages. Sensient’s Tea Collection brings together an extraordinary exploration of 8 different tastes: Green Tea, Matcha Tea, White Tea, Cascara Tea, Rooibos, Chai Tea, Black Tea and Earl Grey.
Ginger has been trusted since Roman times, and is now enjoying a resurgence amongst consumers of all ages. However, not all ginger is the same, so Sensient’s Ginger Collection comprises six distinctive flavour profiles: Classic Ginger Beer, Ginger Ale, Ginger Root (gari), Spicy Ginger, Nigerian Ginger and Chinese Ginger (galangal). Creativity can run riot with these versatile flavours in all sorts of applications, from beverages and confectionery to bakery and dairy deserts. With over 70 years of experience with ginger extracts and flavours, the Sensient team can tailor any of these to create the perfect sensorial experience for any brand.
Sensient’s All Natural Flavour Collections are based on Sensient Natural Origins™, a range of authentic true to nature extracts derived from the named source (FTNS) botanical and other organic-based ingredients, created using selective extraction techniques which capture the true flavour and aroma profile of the original source.
Fi Europe & Ni, from 28 to 30 November in Frankfurt, bundles innovation, market knowledge and expert know-how to meet Clean Label demands
What started as a trend is now the standard: Rising consumer demand for Clean Label ingredients has been a huge influence on the food industry for several years now. In order to offer suitable solutions for this growing market, producers of colours and flavours have committed major investments in creating natural alternatives to synthetic materials. Food ingredients Europe & Natural ingredients 2017 offers a clear overview of a sector that has developed like few others in the food and ingredients industries.
Solutions for an expanding and complex market
What began in the ‘80s with initial concerns about synthetic colours in food has led to today’s dominating demand for natural colours. As a result, nearly 60 per cent of the total food colours market is now comprised of natural solutions, according to Future Market Insights.
In parallel, Clean Label has affected the global flavours market, and both colour and flavour producers have responded with innovation and investments in R&D . “Consumers are highly sceptical about artificial additives, especially those carrying E-numbers. They avoid products with long, complex ingredient lists and have a strong wish for greater naturalness in food”, says Guido de Jager, Head of Group Marketing at GNT. For suppliers, natural colours and flavours today are part of their standard portfolio. Nevertheless, achieving successful results while reverting back to all things natural, is far from simple. Attaining Clean Label status requires standardised raw materials of the highest quality – a challenge when it comes to ingredients made by Mother Nature. In addition, stability concerns still exist around long-term or high temperature warehousing. Paul Janthial, director of the Food & Beverage Business Unit at Naturex, says: “Every natural pigment has its own specific properties in terms of heat or pH sensitivity, light stability and solubility. In order to find the right solution efficiently, the most important thing is not to focus only on the desired shade or color intensity but to share from the very beginning all relevant details about the application matrix and the process applied to it.”
With thousands of products presented in the colours and flavours categories and a high quality conference program, Fi Europe & Ni is the roadmap for the whole natural solutions sector. Barbara Lezzer, European Marketing Director at Sensient Flavours, says: “Consumers nowadays shouldn’t have to accept a compromise between health and taste – they want it all. This is why the focus of all of our research and development is to offer natural solutions based on our proprietary extraction and taste modulation technologies. FIE gives us the opportunity to share our latest developments and capabilities, to bring new product concepts to life in various sweet beverage categories.”
Fi conference and exhibitors: innovation at a glance
During the four-day Fi conference, visitors can experience concentrated knowledge and market insights. On 28 November under the headline “Clean Label & Natural Ingredients”, experts from university and industry as well as market analysts will explore subjects such as the consumer’s view of Clean Label, and technical topics from stability issues in natural colours to reformulation. “Reduction & Reformulation” on 30 November will cover sugar reduction with case studies and speeches focusing on innovative solutions without loss of flavour or functionality.
Fi Europe & Ni organiser UBM has announced a record number of exhibitors for 2017, with 1,500 suppliers. More than 350 of them will present over 2,500 products in the colours or flavours categories. The exhibitor list ranges from flagships like GNT, SVZ, Naturex, Sensient and Symrise as well as innovative newcomers such as La Tourangelle, FoodSolutionsTeam and Aroma’s Lecocq.
In line with consumer wishes, Doehler will present a broad innovations portfolio of natural ingredients, ingredient systems and product applications which meet the individual lifestyle of consumers, offer added health value and impress thanks to an outstanding taste. This is how Doehler is bringing innovative solutions to the fore – solutions which reflect the core topics of naturalness, vegetable-based nutrition, Nutritional Excellence and Multi-Sensory Experiences®. Under the guiding principle “Turning the best out of nature into Multi-Sensory & Nutritional Excellence”, Doehler has developed a series of customised product concepts that provide unique Multi-Sensory Experiences® and are perfectly in line with the nutritional awareness of the consumer.
Enjoy Multi-Sensory Experiences®
Bright colours, optimal texture, outstanding taste – the perfect multi-sensory product experience is in the focus of every new development at Doehler. At drinktec 2017, the company will showcase a wide range of innovative product concepts and application-specific ingredient solutions which provide unique Multi-Sensory Experiences®. For example, tropical fruits such as goldenberry and guava are characterised by a fresh and fruity taste in a new generation of fruit-based drinks, chia seeds as well as fruit and vegetable purees with chunks create an extraordinary mouthfeel and turmeric provides a particularly natural bright colouring.
Driving Nutritional Excellence
Beverages with optimised nutritional value that go hand in hand with a modern, healthy lifestyle – that is what many consumers want. Plant-based ingredients, “free from” solutions and reduced-sugar foods are more popular than ever. From Protein Water and Herbal Detox Teas to Better Nutritional Colas, Doehler will present innovative beverage concepts with healthy added value and fewer calories at drinktec. Doehler will also show its new range of MultiSense® flavours in addition to numerous sweetening solutions that allow reducing sugar by up to 100 %. The MultiSense® flavours range can be used to achieve significant sugar reduction without having to use sweeteners, or to improve the taste and mouthfeel of reduced-sugar products. Especially for soft drinks, the MultiSense® flavours achieve a particularly balanced overall multi-sensory impression and are therefore perfect for reduced-sugar carbonated soft drinks or still drinks.
Hall B2, Stand 101
Frutarom Industries Ltd. (“Frutarom”), one of the world’s 10 largest companies in the field of flavours and natural specialty fine ingredients, continues its momentum of acquisitions and the implementation of its rapid and profitable growth strategy by announced that it has signed an agreement for the purchase of 100 % of the shares of the UK company Flavours and Essences (UK) Ltd. (“F&E”) for approximately US$ 19.5 million (£ 15 million) and a mechanism for future consideration based on F&E’s future business performance over the period of three years from the purchase date. The transaction was completed upon signing and financed through bank debt.
According to F&E management reports, its sales turnover for the 12 months ending in July 2017 totaled approx. US$ 17.4 million (approx. £ 13.7 million) and it registered an average annual rate of growth for the past five years of over 20 %.
F&E, which was founded in 1998, engages in the development, production and marketing of flavours and natural colours. F&E operates a production site and R&D center in Blackburn, England, employs 41 people, and has a broad customer base in Europe, particularly in the UK and Ireland. F&E’s activity is synergetic with Frutarom’s activity in the field of flavours, activity which has grown in recent years by rates considerably higher than the market rate of growth, as well as with Frutarom’s developing activity in the field of natural food colours.
F&E’s founding owners and managers will continue contributing from their rich experience towards continued rapid and profitable growth of the activity.
