Flavour Companies

New round of consolidation in the global flavours sector

This week saw news of another round of consolidation in the global flavours sector, with Kerry, WILD and Frutarom announcing new acqusitions. DSM Nutritional Products also reported it was expanding its nutritional lipids offer. Kerry Group to expand its sweet ingredients, flavours business

Kerry, the global ingredients & flavours and consumer foods group, has entered into an agreement to acquire SuCrest, expanding the group’s sweet ingredients and flavours business in the EMEA (Europe, the Middle East, and Africa) region.

SuCrest, with production and product development facilities located in Hochheim, Germany, and Vitebsk, Belarus, and a SuCrest sales representative office in Moscow, Russia, is a leading provider of sweet ingredients to the bakery, ice cream, confectionery, cereal, and snack sectors in European markets.

Combined with Kerry’s existing sweet systems and flavours portfolio, SuCrest will broaden Kerry’s technology, customer, and geographic base in EMEA markets and will further advance the group’s leadership in providing integrated customer solutions and applications expertise to processors serving sweet technology markets.

The business being acquired reported annual revenue of €50 million in the financial year ended December 31, 2010. The transaction, which is subject to regulatory approval, is expected to be completed by year-end.

Press release

DSM Nutritional Products establishes Nutritional Lipids

DSM Nutritional Products, based in Switzerland, has announced the formation of Nutritional Lipids that will combine Martek’s algal DHA omega-3 and ARA omega-6 products and DSM Nutritional Products’ polyunsaturated fatty acid (PUFAs) portfolio, making DSM the world’s leading innovator and supplier in this category.

Nutritional Lipids will focus on developing and positioning innovative nutritional lipids products. The business will leverage Martek’s technology and market position in the US, and DSM Nutritional Products’ unique global asset footprint, marketing and sales, and premix network to capture significant global growth opportunities and accelerate international expansion.

In a large and growing body of scientific evidence nutritional lipids have shown significant health benefits and support brain, eye and cardiovascular health throughout life. Leading experts around the world have noted that healthy lipids such as DHA, EPA and ARA are important nutrients for health throughout the life cycle, yet many consumers do not include enough in their daily diets.

Press Release

Frutarom acquires Flavor Systems International

Frutarom has acquired the US-based Flavor Systems International. This strategic acquisition strengthens Frutarom’s presence in the US, the world’s largest market in the field of flavours. Frutarom will pay $3.53 million for the deal.

Flavor Systems, established in 1994, employs approximately 50 employees and focuses on the development, production, and marketing of sweet and savory flavours to the food and beverage markets. Sales for the period ending July 31, 2011 totaled $18.4 million, compared to $16.5 million the previous year.

The modern facility and R&D laboratories of Flavor Systems are located in Cincinnati, Ohio. The acquisition also includes a new and advanced production site, with a high production capacity, in its final construction stages, due to be completed in the next few weeks. The site will enable a material expansion into market segments where Frutarom is not active presently such as the growing market of flavoured coffee and shakes, sold at convenience stores and large food chain stores in the U.S. In addition, through this acquisition, Frutarom gains access to the field of savory flavours in the U.S.

The R&D, sales, marketing, production, and supply chain functions of Flavor Systems will be consolidated with Frutarom’s existing organization in the US to achieve synergies. Frutarom will act to utilize the numerous cross-selling possibilities arising from this acquisition and will take steps to expand its products range and customers base in the US market.

Press release

WILD acquires AM Todd

WILD Flavors has announced the acquisition of certain assets of the AS Todd Group, a provider of mint flavours and ingredients based in Kalamazoo, Mich. With the addition of A.M. Todd’s product portfolio, WILD will be able to facilitate enhanced growth for its customer base with new business lines while also allowing for expansion into new markets and channels.

“WILD has experienced tremendous success in responding to its customers’ needs and market requirements with outstanding innovation, creative product development, growing technological advancements, dependable supply chain interaction, and key customer focus. This transaction allows for further growth and leadership in creative product development resulting in great-tasting products for the food and beverage industry,” said Erik Donhowe, WILD Flavors North America’s CEO.

Press release