CHINA – Leading flavors and fragrances company, Firmenich has acquired an undisclosed minority stake in Chinese food flavors and ingredients company, ArtSci Biology Technologies (Hangzhou) Co., Ltd (“ArtSci”).
The partnership expands Firmenich’s reach in Central and Western China market where ArtSci has a strong distribution network.
The deal builds on the firm’s growth strategy in China, where it has been investing in capacity expansions to meet the growing demand for innovative food and beverage solutions.
“Firmenich has great ambitions in China, as evidenced by our recent strategic investments,” said Gilbert Ghostine, Firmenich CEO.
“I am delighted about our reinforced partnership with ArtSci, building on our successful distributor agreement, as it opens new avenues of growth across Central and Western China for both of us.”
Headquartered in Hangzhou, in the Zhejiang province, ArtSci specializes in dairy and beverages and is known for its agility and speed in servicing mid-sized customers.
It has more than 130 employees, with a strong presence across China’s middle market, as well as a large distributor network across the fastest growing regions of Central and Western China.
In China, it is recognized for its best-in-class service levels, as well as agile and fast speed business model, serving mid-sized customers in the market.
“We are delighted to be partnering with Firmenich, a world leader in taste with world-class technologies and innovation,” said Wang Ying, Chairman ArtSci.
“With our strategic partnership, we can offer a broader portfolio of solutions and strengthened capabilities to our customers across China to best meet their needs today and in the future.”
The acquisition builds on Firmenich’s efforts to expand in China, where it launched a new flavor manufacturing plant, located in Zhangjiagang.
Said to be the largest flavor manufacturing plant in the world, the facility adds to its facilities in Shanghai and Kunming serving its Perfumery and Ingredients Businesses.
Last year, the company entered a strategic partnership with Layn Natural Ingredients based in Guangxi, for exclusive access to the industry’s widest range of natural sweeteners, such as monk fruit and stevia.
In 2012, Firmenich opened a major Research Center in Shanghai, dedicated to driving cutting edge technologies to best serve its customers in China.
Firmenich has a nationwide presence of commercial facilities with application laboratories in Shanghai, Beijing and Guangzhou.