New research reveals how food and beverage brands can lead innovation for millions facing sensory and nutritional challenges

IFF a global leader in food, beverage, and health and wellness, has released a new report highlighting how the rapidly growing GLP-1 consumer market is reshaping the sensory experience and nutritional needs associated with eating and drinking. The report outlines how food and beverage manufacturers can better support this emerging consumer segment with products that align with their evolving preferences.

“IFF is empowering our customers to lead the next wave of food and beverage innovations beyond traditional formulations, including helping GLP-1 consumers have choices they desire,” said Erik Fyrwald, IFF CEO. “We aim to bring back the joy of eating and drinking by offering more healthy, great-tasting nutrition choices for all consumer segments, including GLP-1 users.”

Disconnect on three levels

Despite the rapid rise in GLP-1 medication use, most food and beverage products fall short of meeting the needs of these consumers – or aligning with how they now experience food. IFF has identified a disconnect on three key levels:

1. Nutritional: GLP-1 users are eating less but require more from every bite and sip. They need nutrient-dense, smaller portions that efficiently deliver protein, fiber and hydration—without overwhelming flavours.
2. Sensory: Eighty-five percent of GLP-1 consumers report significant changes in their food and beverage preferences. Common aversions include fatty foods, sweets, deli meats, coffee and alcohol. Dry, sticky or dense textures are also frequently rejected.
3. Emotional: Many consumers are navigating a changed relationship with food—one that may involve a sense of loss, social disruption and a search for new meaning in nourishment.

Understanding the GLP-1 consumer personas

IFF is in the early stages of exploring GLP-1 consumer segmentation to help brands move beyond a one-size-fits-all approach toward one grounded in empathy, specificity and long-term relevance. The company’s latest outlook introduces key consumer personas, which are expected to evolve over time:

• Health Hacker Holly: Proactive, data-driven and focused on long-term wellness, she views GLP-1 as part of a broader bio-optimisation journey. She seeks functional benefits in formats such as protein bars, smoothies and enriched hydration blends, prioritising high-quality protein, added fiber and digestive support.
• Remedy Reacher Ron: Often managing chronic conditions such as diabetes, he uses GLP-1 to reclaim his health and sees food as both medicine and maintenance. He looks for fortified snacks and gut-friendly options aligned with medical guidance, favoring meal kits and low-glycemic shakes.
• Glow Getter Gail: Transformation-minded and focused on lifestyle and self-image, she wants food that aligns with her goals and identity – aspirational yet approachable, with “glow-up” appeal. She seeks portion-conscious indulgences, beauty-boosting nutrition and enjoyable flavours in formats such as smoothies, functional waters and shareable treats.

The outlook also outlines how the food and beverage needs of each GLP-1 persona evolve over time. In the initial treatment phase, consumers need support managing smaller portion sizes and medication side effects. The transitional phase focuses on preventing regression, requiring flexible serving sizes and flavour intensity options that adapt to changing cravings. In the “forever” phase, consumers seek to sustain their new routines with habit-forming formats for daily use, nutritional fortification and pre-portioned, high-satiety foods.

Driving empathy-powered innovation

IFF has introduced a comprehensive framework to support food and beverage manufacturers in addressing the complex sensory and nutritional needs of GLP-1 consumers. The framework is designed to guide both the reformulation of existing products and the development of new offerings, tackling challenges such as muscle mass maintenance, satiety, digestive support and sensory preferences. To demonstrate practical applications, IFF has developed a suite of AI-refined, consumer-tested product concepts that show how manufacturers can optimize their portfolios for this rapidly expanding market.

Located on the Florida Polytechnic University campus, the IFF site is powered by advanced technology, expert knowledge and a holistic citrus ecosystem in the heart of Florida’s citrus belt.

IFF announced the opening of the Citrus Innovation Center in Lakeland, Florida, in partnership with Florida Polytechnic University. This 30,000 square foot facility encompasses state-of-the-art capabilities in botanical research leveraging its LMR by IFF natural ingredients expertise, processing, analytics, product creation for scent and taste, and includes a 360-degree digital immersion room. Designed with sustainability in mind, the center offers job opportunities in research, customer experience, supply and operations.

“Citrus is vital to our creations in scent and taste, with enormous potential for innovation across our businesses,” said Erik Fyrwald, IFF CEO. “The Citrus Innovation Center embodies our unwavering dedication to innovation, and our commitment to creating enduring external partnerships that help us to bring leading solutions to our customers while doing more good for people and planet.”

The Citrus Innovation Center will focus on applications in food and beverage, fine fragrance, body care, and fabric & home care. Equipped with cutting-edge technologies, IFF customers can anticipate rapid product development, explore innovative citrus applications, and conduct advanced product testing. The facility is designed to foster collaborative innovation partnerships, aligning with IFF’s culture and values. Additionally, the center boasts direct access to industry-leading experts, academia and on-site prototyping capabilities, enabling customised solutions. Supporting approximately 40 jobs, the facility offers room for expansion, with opportunities for job rotations, professional development, and training – paving the way for future growth and innovation.

“The grand opening of IFF’s Citrus Innovation Center on our campus marks a pivotal milestone for Florida Poly, launching a bold partnership that will drive pioneering research and create transformative opportunities for our students and faculty,” said Dr. Devin Stephenson, president of Florida Polytechnic University. “This powerful collaboration will accelerate discovery and technological advancement in the flavor and fragrance industry, while marking the beginning of a research park that will fuel innovation and economic growth.”

Attention to detail is central to the building’s design. Its unique architectural expression, combined with views of the campus and surrounding nature, complements the center’s goal of minimising its environmental footprint. Key sustainability features include LEED silver certification, a solar array system that meets the site’s entire power demand, the use of well and reclaimed water for irrigation, energy-saving processes, and a comprehensive recycling program in partnership with Recycling Services of Florida.

Themed “Make joy through science and creativity”, concepts will focus on transforming megatrends and innovations into opportunities for the industry

IFF is set to unveil a series of groundbreaking food and beverage innovations at Gulfood Manufacturing 2024 leveraging cutting-edge technologies and deep consumer insights. This year’s theme, “Make joy through science and creativity,” underscores IFF’s focus on transforming megatrends into tangible opportunities for the industry.

“We aim to revolutionise the food and beverage industry with innovative solutions that exceed market demands,” said Helga Moelschl, regional president, AMETI, Nourish, IFF. “Our approach combines scientific expertise with a relentless spirit of creativity and agility. We are excited to present concepts that embody these principles. Visitors will experience firsthand how our sustainable and affordable solutions deliver unparalleled sensory delight and functional health benefits.”

IFF will showcase a diverse range of new concepts inspired by key consumer trends like Experiential Delight, Health, and Affordability across various categories, including beverages, dairy, snacks, bakery, culinary, bars and confectionery. These innovations highlight IFF’s technical expertise and creativity in helping manufacturers create products with sensory appeal and functional health benefits, while also reducing costs.

Visitors to the double-story booth can experience the following beverage concepts:

• Cost-efficient dairy drink: Concepts containing IFF’s unique system of specialty stabilisers, emulsifiers, patented flavour technology, and innovative top notes offers impactful savings on the full product composition without compromising on the sensory profile and stability compared to standard milk. Solutions are showcased in plain milk and sweetened flavoured versions, all offering higher calcium levels than standard milk.
• Fizzy beverage with innovative flavours: Designed to connect with consumers’ emotions while offering the benefits of an energy drink, IFF researchers developed IFF Beyond Hedonics™, a toolbox of proprietary consumer research methodologies, to align flavours with functional benefits (IFF Ingredient HealthScape™) and affective states such as energy, happiness, focus and fun (IFF Flavor Feelings™). By leveraging these insights, IFF can help manufacturers build a stronger connection between their brands and consumers.
• Reduced tomato paste in tomato-based sauces: Powered by IFF CURE™, IFF’s Core and Uncommon Replacements & Extenders, this system blend reduces tomato paste by 30 percent or more in ketchup, tomato paste and tomato-based sauces, maintaining flavour, texture, and quality while offering a cost-effective and sustainable alternative for manufacturers.
• Cocoa reduction in chocolate drinks: IFF’s innovative flavours and ingredient solutions can help mitigate the impact of cocoa price fluctuations, ensuring that the taste and functionality of chocolate drinks are preserved even with reduced cocoa content. This approach addresses cost concerns and maintains the high-quality sensory experience that consumers expect.

IFF, a global leader in food and beverage, home and personal care, scent, and health announced that it aims to complete the renovation and expansion of its facilities in Shanghai Hongqiao Airport Business Park, Shanghai, China. The site will be fully operational by the end of August 2024. The 16,000 square-meter site, named “Shanghai Creative Center,” is IFF’s largest in Asia. The project is designed to drive the development of innovative solutions across the IFF portfolio in China and the Greater Asia market, further strengthening its global leadership in fragrances, flavours, functional ingredients, and bioscience-based portfolios.

“The Shanghai Creative Center will bring together capabilities across IFF, all in one location, enabling us to improve our delivery of end-to-end solutions for customers in Asia and around the world,” said Erik Fyrwald, IFF chief executive officer. “This was a natural next step following the opening of our Singapore Innovation Center in 2022 and reaffirms our dedication to advancing innovation in Asia.”

IFF first entered the Chinese market in 1981, becoming the fragrance and flavour industry’s first multinational to establish footprint and to set up a factory. The newly renovated site signals the importance of the Asia region to IFF, globally. Today, China is one of the most important markets for flavours and fragrances with high potential for growth. Furthermore, the region’s demand for bioscience-based products is rapidly accelerating, as consumers increasingly seek options for greater longevity and healthy lifestyles. IFF’s deep knowledge and experience in these sectors, coupled with this investment in the innovation center, positions the Company to offer differentiated products to market quickly and effectively to support its customers’ brand growth strategies in China.

Expert flavorists will enhance sweet and culinary capabilities with cutting-edge modulation technologies

IFF a global leader in solutions for food and beverages, health, biosciences, and scent has increased its innovation capabilities with two new state-of-the-art flavour labs at its facility in Northern Europe. The sweet and culinary flavour creation labs are the latest addition to the company’s expansive campus that has been in operation since 1964, spanning more than 312,150 square feet in Brabrand, Denmark.

The innovation hub is home to more than 400 employees engaged in research, application development, ingredient and flavour creation. The expanded facility will enable local and regional manufacturers to work in close partnership with a new team of flavourists who will introduce the latest modulation technologies and develop solutions for the beverage, bakery, dairy, snacks, culinary, bars and confectionery end markets. Working with an extensive library of proprietary flavor ingredients they will create exciting and unique flavour experiences for consumers, especially in areas such as masking, sweetness and umami.

“This expanded facility is a testament to our continued investment in innovation to meet evolving consumer expectations,” said Jan Bechtel, regional president of Nourish Europe, IFF. “We will continue to build on our deep expertise and scientific knowledge and invest in tools and products to bring what matters most to consumers in the market: creating the next generation of delicious, healthy and experiential food and beverages.”

Expert flavourists will have access to IFF’s latest research innovations, particularly in plant-based and biotechnology, along with resources like pilot plant manufacturing, ingredient expertise and evaluation studios, creating the perfect environment for end-to-end product design.

“We’re thrilled to launch these flavour labs,” said Laurens Reiber, creative director, Nourish Europe, IFF. “Brabrand is already a massive innovation center, and its location helps us better understand local market preferences and deliver trending global flavours. Now we’re investing further to boost our speed-to-market capabilities and to bring greater value to our partners.”

Following the completion of the Culinary Design Center last summer in Denmark, the opening of the new flavour labs is the company’s latest investment in R&D to develop winning solutions that meet customer and market needs with speed, agility and creativity.

IFF announced it has entered into an agreement to sell its Flavour Specialty Ingredients (FSI) business to Exponent, a leading UK-based private equity firm, for USD 220 million in cash proceeds. FSI reports through IFF’s Scent division and is a leading manufacturer of synthetic and natural base aroma chemicals used in the flavour market. Cash proceeds from the transaction, net of taxes and expenses, will be used to reduce outstanding debt.

“Aligned with our strategy, we’re continuously evaluating our portfolio to identify opportunities to strengthen our financial profile,” said IFF CEO Frank Clyburn. “The sale of FSI will improve our capital structure while allowing us to focus on our core businesses to enhance growth and returns. We appreciate the contributions of our FSI colleagues, who have shared our commitment to quality and customer service. We will work closely with Exponent to have a successful transition and look forward to FSI’s bright future.”

IFF’s FSI is a leading manufacturer of specialty base aromas with a broad range of more than 1,000 aroma chemicals and natural extracts, which provide inputs primarily to the flavour market. FSI includes four dedicated manufacturing and distribution facilities at Teesside and Hartlepool, United Kingdom; Cincinnati, United States; and Pucheng, China, with additional points of distribution in Mexico, Brazil and Hong Kong. With approximately 340 employees, IFF’s FSI business serves more than 970 customers and generated more than USD 100 million in revenue over the last 12 months.

IFF and Exponent expect to close the transaction by the end of Q3 2023, subject to customary closing conditions. Centerview Partners LLC acted as financial advisor to IFF, and Cravath, Swain & Moore LLP provided legal support.

Public-private partnership to advance citrus research, development of breakthrough solutions for food, beverage and fragrance industries

In a ceremonial presentation, IFF and Florida Polytechnic University laid the foundation for the new Citrus Innovation Center, located on the University’s campus in Lakeland, Florida. The nearly 30,000-square-foot, standalone building will support global citrus research and development, and will include sensory and experience venues, research labs, processing, analytical departments, a fully equipped citrus garden and amenities for hosting customers and partners.

“What an honour to celebrate this beacon for innovation and excellence, that is a perfect blend of science and creativity,” said Nicolas Mirzayantz, president, Nourish Division, IFF. “As we lay the foundation for a global citrus innovation center, we re-affirm IFF’s commitment to invest in R&D capabilities that unlock the development of innovative solutions for our customers, partners and communities we operate in. This facility represents a significant milestone in our cross-divisional citrus strategy. Here, we will accelerate innovation by combining the expertise from our Nourish and Scent divisions with on-campus talent who are just as committed to pushing the boundaries of science and uplifting the citrus industry as a whole.”

Nestled on the university’s campus in the heart of the citrus belt, the new, best-in-class center for excellence is designed, engineered and constructed by Ryan Companies, who upon completion, will maintain the building. The sprawling, glass-fronted building and surrounding grounds are slated for completion in late 2023.

“IFF holds a leading position in R&D investment,” said Christophe de Villeplée, president, Scent Division, IFF. “This cutting-edge facility represents one more way we’re combining creativity and science, working closely with our partners and customers. Citrus extracts are an essential component of our creations, bringing consumers delightful freshness. By building a transformational, holistic citrus development ecosystem in one of the world’s central citrus locations, we will further deepen our knowledge, and facilitate the creation of differentiated citrus products that delight global food, beverage and fragrance customers, while doing more good for people and planet.”

IFF will be the first company located on Florida Poly’s campus. The company anticipates providing hands-on internships and job opportunities for Florida Poly students in areas of research and development, customer experience, supply and operational coordination and entrepreneurship. Additionally, IFF will support the University through funding and collaborating on faculty research, sponsoring senior capstone projects, and supporting academic programs.

“We are proud that IFF recognised the strategic advantage in partnering with our University,” said Randy K. Avent, president of Florida Poly. “Our students and faculty are making real contributions in growing the tech industry by influencing the designs of pioneering technologies and real-world solutions. We’re excited about the cross-disciplinary learning opportunities for our students through this partnership in fields such as metabolomics, automation, artificial intelligence, virtual and augmented reality, and biometric data capture and analysis, to name a few.”

The building capitalises on views toward the campus, overlooking the expansive ponds and the campus front entry. Its architectural design draws inspiration from the building’s purpose: the exterior reflects the density and discernment of aromas, scents and taste sensations, showcasing acute moments of knowledge, research and gathering, and the flow of those experiences between spaces.

“The ethereal nature of the design concept was challenging, however Ryan was able to successfully create a dynamic, unique architectural expression that reflects the nature of the work being done within the facility, while complementing the existing architecture on the campus,” said Linaea Floden, regional director of Architecture for Ryan A+E.

New products in the health and wellness space will be released this year as part of the collaboration

Smart Cups, the sustainability-driven technology company with a mission to provide a mindful path forward for the beverage industry and beyond, announced their multi-year deal with IFF, an industry leader in food, beverage, scent, health and biosciences. Smart Cups will further expand the foundational platform of its Smart Cups Technology^TM, which is anchored on the printing platform developed through IFF’s acquisition of The Additive Advantage in 2019. The collaboration, led and managed through IFF’s Integrated Solutions group, will enable the creation of several lines of innovative and sustainable consumer products, beginning in the health and wellness space.

“We’re excited to combine IFF’s expansive ingredient portfolio with Smart Cups Technology and Smart Cups’ manufacturing capability under IFF’s new Integrated Solutions group,” said Auroni Majumdar, VP Strategy and Business Development, Integrated Solutions.

“Smart Cups is continually innovating new products, which is why we are excited to collaborate with IFF to access their unparalleled and expansive portfolio of ingredients, which will be used to enhance existing product lines and incorporated into the development process for new products,” said Chris Kanik, Founder and CEO of Smart Cups. “By working with IFF, our applications have the ability to help each company reach their eco-forward goals. Smart Cups Technology allows for a true revolutionary new standard of environmentally conscious products that will usher in a brighter and more sustainable future for everyone.”

In addition to incorporating IFF ingredients into the development process for new products, Smart Cups will also utilise IFF ingredients to enhance their current product line of energy drinks and caffeine-free Refreshers, which are produced by Smart Cups Technology a patented delivery system based on proprietary printing technology which allows the printing of ingredients on any surface. The technology allows Smart Cups to print drink ingredients onto the inside of cups and containers, eliminating the need to ship liquids. The inherent waterless nature of Smart Cups Technology significantly reduces the resources needed to transport products from the manufacturer to the consumer, which can offer a significant reduction of carbon footprint across a multitude of industries.

“IFF has always been at the forefront of innovative technology. By gaining exclusive access to Smart Cups’ manufacturing technology and this collaboration, we will focus on the development of new innovative print products that will help lead the future of sustainability, manufacturing, and enable new product formats for consumer packaged goods,” said Dr. Gregory Yep, Executive Vice President, Chief Global Scientific & Sustainability Officer at IFF. “This collaboration highlights our continuing R&D tech expansion as well as our commitment to sustainability.”

Currently, the collaboration is focused on products within the health and wellness industry. The products, which are currently in development, are expected to be released in 2022.

About Smart Cups
Smart Cups is a sustainability-driven technology company with a mission to provide a mindful path forward for the beverage industry and beyond. Having created the world’s first printed beverage, an energy drink, Smart Cups eliminates the need to bottle and ship liquids, which, in turn, significantly reduces our carbon footprint. With the unique ability to print ingredients on any type of surface, Smart Cups’ technology can be easily implemented across a myriad of industries—offering an eco-forward approach. Founded by Chris Kanik, the Southern California-based company is revolutionizing the beverage industry by disrupting the way products are manufactured, packaged, shipped and consumed. Smart Cups aims to give every customer the tools they need to drink healthier, happier, eco-friendly and more conveniently, as well as bringing better beverages to their customers through their revolutionary technology. Most recently, Smart Cups was honored by TIME Magazine, receiving high recognition for their proprietary technology with a Special Mention in TIME’s 2021 Best Inventions.

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.

IFF, a leading innovator of taste, scent, and nutrition, announced that Kathy Fortmann has been appointed IFF Divisional CEO, Taste, effective October 1, 2020. Ms. Fortmann will replace Matthias Haeni, IFF’s current Divisional CEO, Taste, who has informed IFF of his intention to retire from the Company at the culmination of his 30-year career in the industry. Upon completion of the previously announced merger of IFF with DuPont’s Nutrition & Biosciences (N&B) business, Ms. Fortmann will assume the role of President, Taste, Food & Beverage. She will replace Mr. Haeni and Amy Byrick, N&B Food & Beverage Platform Leader, who had been previously announced to lead the Taste, Food & Beverage division upon transaction close. IFF and DuPont continue to target completion of the merger for the first quarter of 2021, subject to approval by IFF shareholders and other customary closing conditions, including regulatory approvals.

In her new role, Ms. Fortmann will join the company’s Executive Committee and oversee the strategy and commercial and creative execution for the division. She will continue to play an instrumental role in executing the integration of IFF’s Taste offering with N&B’s Food & Beverage platform, in close collaboration with Ms. Byrick, to form the combined company’s Taste, Food & Beverage division. Ms. Fortmann joined IFF in April 2020 as Head of Taste Strategy and Cross-fertilization, where she has applied more than 30 years of experience and expertise gained through various leadership roles. She most recently served as President of FrieslandCampina Ingredients, a multi-billion-dollar food ingredients business, and previously held the role of President of Business Services and a member of the Executive Committee at Cargill as well as various positions with DuPont.

“In her short time with IFF, Kathy has already brought tremendous expertise and insight to our team leading IFF’s integration of Taste with N&B’s Food & Beverage platform. With her proven track record of delivering growth and innovation at global food and beverage ingredients organizations, I am confident Kathy is uniquely qualified to lead this division,” said IFF Chairman and CEO, Andreas Fibig. “I am proud to have worked so closely with Matthias, as his leadership for the past seven years as Divisional CEO has been instrumental in the success of our Taste business. His long and successful career has been truly impressive, and during his tenure with IFF he has advanced our position as a leader within the Taste industry and delivered strong financial performance. I wish Matthias the very best for his next chapter.”

Mr. Haeni has agreed to work closely with Ms. Fortmann until the completion of the transaction with N&B to ensure a smooth transition. Ms. Byrick remains fully engaged in running the Food & Beverage business at N&B, as well as assisting Ms. Fortmann with integration planning for the future Taste, Food & Beverage division. Following the transaction close, Ms. Byrick has chosen to pursue her career outside of the combined company.

International Flavors & Fragrances Inc. announced it has completed its acquisition of Frutarom.

The new IFF is a global leader in taste, scent and nutrition:

• Creates a differentiated portfolio with an increased focus on naturals and health and wellness as well as more comprehensive solutions.
• Provides opportunities to expand into attractive and fast-growing categories, such as savory solutions, natural colors, natural food protection and health ingredients
• Broadens complementary and growing customer base, including enhanced exposure to the fast-growing small- and mid-sized customers, such as private label
• Establishes enhanced platform to deliver sustainable, profitable growth
• Provides strong value creation opportunities to maximize shareholder value – including cross-selling benefits as well as cost synergies

“The coming together of IFF and Frutarom is a momentous achievement. We are excited to be moving forward as one company and pursuing new opportunities that benefit all our stakeholders around the globe,” said IFF Chairman and CEO, Andreas Fibig. “Over the past several months, our integration planning teams have been working to ensure that we capture the best of both companies and create a seamless and efficient transition to achieve both our operational and financial targets for this combination. Today, we are celebrating the creation of a new IFF with even greater aspirations as a leader in taste, scent and nutrition. On behalf of everyone at IFF, we welcome Frutarom and its talented team, and look forward to working closely with all employees to continue to deliver winning products to our customers and maximizing long-term value for our shareholders.”

IFF anticipates the combination with Frutarom will translate into accelerated financial performance, with robust top and bottom-line growth. The Company expects to generate an average sales growth of 5 – 7 %, and 10 % adjusted cash EPS growth, on a currency neutral and pro-forma basis, over the 2019 to 2021 period. IFF also believes it will realize $145 million in cost synergies by rationalizing procurement, optimizing global footprint and streamlining overhead expenses by the third full year after the completion of the merger. The Company will be prioritizing repayment of debt and anticipates to be less than 3X net debt to EBITDA in 18 – 24 months to retain its investment grade rating.

As previously announced, holders of Frutarom ordinary shares are entitled to receive $71.19 in cash and 0.249 of a share of IFF common stock for each Frutarom ordinary share they owned. Frutarom shareholders will also receive a special dividend, on a per share basis, equal to 0.249 of the per share value of IFF dividends with a record date between May 7 and October 4, 2018. The combined company will be headquartered in New York City and will maintain a presence in Israel.

International Flavors & Fragrances Inc. and Frutarom announced that they have entered into a definitive agreement under which IFF will acquire Frutarom in a cash and stock transaction valued at approximately $7.1 billion, including the assumption of Frutarom’s net debt. Under the terms of the agreement, which has been unanimously approved by the Boards of Directors of both companies, Frutarom’s shareholders will receive for each Frutarom share $71.19 in cash and 0.249 of a share of IFF common stock, which, based on the 10-day volume weighted average price (VWAP) for IFF’s common stock for the period ending May 4, 2018, represents a total value of $106.25 per share.

By combining with Frutarom, IFF is accelerating its Vision 2020 strategy to create a global leader in taste, scent and nutrition. The combination unites two industry-leading, innovative companies with complementary customers, capabilities and geographic reach, resulting in more exposure to fast growing end markets and an enhanced platform to deliver sustainable, profitable growth. The combined company’s customers will have access to comprehensive and differentiated integrated solutions with increased focus on naturals and health and wellness.

Frutarom is a flavors, savory solutions and natural ingredients company, with production and development centers on six continents. It markets and sells over 70,000 products to more than 30,000 customers in over 150 countries. Frutarom is primarily focused on natural products, which drive more than 75 % of its sales. Frutarom’s product portfolio consists of innovative and integrated solutions combining taste and health, natural and clean label products. In addition, Frutarom mainly serves local and mid-size customers, and has a compelling presence in fast-growing adjacent and complementary categories such as natural colors, health and beauty ingredients, natural food protection and enzymes. Frutarom has a strong track record of growth, with expected sales of above $1.6 billion in 2018, and their previously announced target of $2.25 billion in sales by 2020.