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Just last week, Frutarom announced the acquisition of Belmay's flavor business. Here, P&Fnow talks to Ori Yehudai (Frutarom CEO) and Hee Jeong Son (Belmay VP of marketing) to gain insight into each company's respective plans for the future.
More Acquisitions Ahead for Frutarom
“I assume that maybe we can make even more than two acquisitions in 2007,” says Frutarom (Haifa, Israel) president and CEO Ori Yehudai. “I assume that we will, through the coming year, be able to execute a bigger acquisition compared to those we’ve done before.”
Following a year in which the company’s sales leaped 17.8% to $287.2 million, Frutarom is looking to combine internal growth with expansion via acquisitions. Following the 2006 purchases of Germany’s GewurzMuhle Nesse and Actaris Health, the company recently paid $17.1 million for Belmay Inc.’s flavor business, which provided enhanced entrée into Singapore, Denmark and Norway, among other locales. “The combination of Frutarom and Belmay creates the strongest flavor player in the UK market,” says Yehudai. In addition, he says, Belmay’s strong R&D and strong emphasis in the beverage market—particularly soft drinks and alcoholic beverages—melds well with Frutarom’s existing expertise in citrus products.
Health + taste: “Frutarom’s vision is to be the preferred partner for tasty and healthy success,” says Yehudai. As the food industry demands more healthy, natural and organic products, Frutarom is taking advantage of the functional food and dietary supplements expertise of its Actaris purchase. Of course, the goal is to meet these health and wellness demands without compromising on flavor. “The Nesse acquisition …enhanced our position in savory products, with a strong position in the fish and meats arena, and some very interesting organic lines,” says Yehudai. All combined, Frutarom has greatly enhanced its portfolio of flavor and health ingredients.