Beverage and dairy drive Givaudan's Euro sales

By Laura Crowley

- Last updated on GMT

Related tags: United states, Flavor

Givaudan has reported sales growth in its flavours division in Q3,
particularly in the European beverage and dairy segments, and in
developing markets.

In the first nine months of 2007, Switzerland-based Givaudan recorded sales in the flavour division of CHF1.675m (€1.005m), compared to last year's total of CHF1.282m (€769,846). This is a 30.6 per cent increase in local currencies. Europe and the developing markets of Asia Pacific and Latin America largely contributed to this growth. European sales delivered high single digit growth, and the good results for the beverage and dairy section were driven by new innovation and good growth of the existing business. Beverage and dairy sales have not experienced similar success in North American, due to fewer beverages launches and declining consumer consumption of milk products driven by industry price increases. The demand in the US for products, other than butter and cheese, has been declining or contributing little to overall growth in the industry, which has increased only 0.4 per cent annually since 1995. The total sales amount for fragrances and flavourings in the January to September period is CHF3.105m (€1.863m), which is equal to an increase of 40.6 per cent in local currencies. This reflects the inclusion of Quest sales as of March 2007, when Givaudan completed the CHF2.8bn (€1.7bn) acquisition of this competitor in the flavours and fragrance field. The company only releases operating results with its full year financials. The acquisition was in line with Givaudan's strategy of focusing on developing markets and capturing opportunities in key segments. It was designed to strengthen its position in important growth markets such as Asia Pacific, Latin America and Eastern Europe. Indeed, Givaudan has experienced solid growth in these areas. In Q3, Givaudan achieved double digit growth in the developing markets of China, India, Thailand and the Philippines in Asia Pacific. This was supported by particular success in the beverages and confectionary departments. Latin America sales delivered a good single digit growth for the year, particularly in the savoury and dairy segments. The developing markets of Argentina, Peru, Chile and Venezuela saw double digit sales growth. According to Givaudan, the integration of Quest International is progressing well, having a strong influence on both areas of the company, but a little more so on the fragrance division. The pro forma figures, which assume that the Quest acquisition had occurred on 1 January 2006, show a growth in sales in the flavour division from CHF1.746m (€1.048m) in 2006 to CHF1.781m (€1.069m) in 2007, which is equal to an increase of 6.9 per cent in local currencies. Givaudan says it is still on track to generate the expected CHF200m (€120m) integration synergies by 2010.

Related topics: Manufacturers

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