Firmenich Full-year 2013 Results Reflect Growth in Fragrance and Flavor
Posted: October 11, 2013
Driven by "high-growth" regions including China, North America, Asia Pacific, Latin America, Eastern Europe, the Middle East and Africa, Firmenich annual sales for the period ending June 30 increased 7% in local currencies and 10% in Swiss Francs, totaling CHF 2,891 million.
- Fragrance sales grew in single-digits, led by growth in home and body care and supported by delivery systems and encapsulation technology
- Fine Fragrance sales in the United States and other "high-growth" markets was strong, led by a double-digit gain in North America
- Flavors recorded high single-digit sales growth, driven by beverage, sweet goods and savory foods categories, and supported by encapsulated delivery systems and taste modulation technologies
- Beverages delivered double-digit sales growth, particularly in Asia and North America, in part due to activity in hot drinks and special soft drinks requiring chocolate, dark roast coffee, juicy citrus and mango profiles
- Greek yogurt demand continues to grow, requiring taste and texture solutions and "trendy" flavor profiles such as pomegranate
- In cakes and cookies, flavors such as strawberry, blueberry and vanilla led
- Breakfast product launches necessitated whole grain and buttery profiles in food service sandwich applications
- Proprietary taste modification technology drove savory sector innovation, including salt enhancement; according to the company, "consumer preference for bold and hearty meat flavors and for simple comforting chicken and butter tonalities positively impacted the categories of prepared meals and proteins"
- New sauces and marinades required lime and other bold profiles
- Ingredient sales fell slightly for the year
- Decreases were attributed to commoditization and increased competition
- The company is increasing its footprint in the use of synthetic biology and enzymatic reactions in ingredient production
- Firmenich is also expanding its presence in the taste perception and modulation ingredient field with partners such as Amyris and Senomyx
- CO2 extraction technology is proving popular with customers
- The company has released three new synthetic ingredients, a natural sandalwood note, a molecule with "sensual floral and hyacinth notes," and a natural rose petal note "with hints of exotic fruits"