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Frutarom’s Aggressive Strategy; Belmay Focuses on Fragrance

Posted: April 3, 2007

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Facing a future of consolidation: Yehudai, like many of his peers in the industry, foresees further consolidation, leading to a landscape populated by just a couple giant F&F institutions and more numerous mid-sized companies such as Frutarom. “Frutarom will be able to take a roll as one of the top five or six flavor companies in the world,” he adds.

“I believe that if you look at the market of flavors, excluding fragrances,” says Yehudai, “we’re number eight in the world. And I think that the goal to double our sales from around $300 million to $600 million through the combination of internal growth and acquisitions will help us to improve our position.”

Belmay Refocuses on Fragrance

“These are perfumers who really want to make great smelling fragrances,” says Belmay Inc.’s (Yonkers, NY) vice president of marketing Hee Jeong Son. “They are not pressured by the board to make ‘x’ amount of margin on a monthly or quarterly basis.”

With the sale of the company’s flavor business to Frutarom for $17.1 million, all of Belmay’s energy and resources are now being invested into the fragrance business. As Son explains, “Belmay’s been around for 72 years, since 1935, but our flavors division is only 20 years old. Because of this, flavors have never really been our core competency… So, he [Ted Kesten, CEO] decided it was the right time to sell, and since it’s a private business, put the cash into fragrance and grow that further.”