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Expanding Into Vanilla: Synergy & Vanlab
Posted: March 6, 2007
page 3 of 3
Sowders: I think the industry in the near future will look a lot like the last five to 10 years. There’s no doubt that there’s going to be further consolidation, much of which is driven by our customers' consolidation. This, in turn, creates a need for suppliers to control costs and grow in product range and geographic scope.
I think the other thing that’s important, even without the pressure from our customers and from their customers in turn, is that there many smaller flavor companies without any real plans for family or management succession. These companies are going to continue to seek exit strategies to try to capture the wealth they’ve built and find a company like Synergy who will be able to continue to be a steward for their business. There are a lot of those companies out there.
P&Fnow: Where do you see Synergy in five to 10 years?
Sowders: We don’t really have a desire to be a top five flavor company. With that said, we do have strong aspirations to grow our share in our current key market segments and maybe some selected new ones. With acquisitions and organic growth we have fortunately doubled in size every two to three years since Carbery first acquired the UK division of Synergy Flavors. This trend will continue if we are successful and continue to execute the strategy we are working on.