GERMANY – French-based vanilla ingredients supplier Eurovanile has acquired Solvay’s Vanifolia range of vanilla flavours as part of efforts to expand its food formulation business.
As part of the deal, Solvay will maintain ownership of its Rhovanil business line and will provide Rhovanil Natural CW to Eurovanille for the production of Vanifolia for the next three years.
This is the first acquisition by Eurovanille for its growing food formulations business, building on its existing vanilla expertise, know-how, global presence, and supply of an expanded natural product line to customers.
The range comprises food formulations that use Solvay’s Rhovanil Natural CW as the primary ingredient and are developed for baking, chocolate and confectionery, and instant powder beverages.
“This first acquisition delivers the important synergies and global ambitions we were looking for in our vanilla business,” adds Laurent Bourgois, CEO Eurovanille.
“It will allow Eurovanille to expand its portfolio of flavors and add key technologies to strengthen its offer of aromatic technical solutions for the food industry.”
The acquired Vanifolia Bean range is based on vanilla pods and allows “natural vanilla flavor” labeling in Europe.
It was designed to offer specific organoleptic benefits in key global segments, such as nutrition, bakery and premixes, chocolate, and instant powdered beverages.
For Solvay, the sale results from its long partnership with Eurovanille and reflects the mutually beneficial relationship and leading position of both companies in supplying natural vanilla flavorings.
“We are pleased to transfer ownership of Vanifolia food formulations to Eurovanille, who has been a long-time partner to Solvay and is well-positioned to lead this product line moving forward,” explains An Nuyttens, president of Solvay’s aroma business unit.
“This transaction aligns with our GROW strategy, allowing us to focus on our leading position in developing and supplying natural vanillin and other bio-based flavors and fragrances.”
Eurovanille’s acquisition comes at a time when the demand for vanilla extracts is surging globally due to its anti-oxidant and anti-carcinogenic properties.
Acumen Market Research projects that the global Vanilla Beans and Extract market size will grow at a CAGR of 4% to reach approximately US$4.3 billion by 2025.
Eurovanille, therefore, stands to reap from this growth although fears of rising vanilla prices threaten to eat into the company’s profits.
“We are cautiously optimistic, at least in the short term, that we do not experience the drastic price drops we saw after the last vanilla crisis ended in 2004,”says Fabrice Domart, director of business development at Eurovanille.
The government of Madagascar has instituted a minimum export price of US$250.00/kg for the 2020 vanilla crop, which began to be exported on September 15, 2020.
“Madagascar, which is by far the largest producer of vanilla in the world, generally sets the tone for the other markets that follow,’ Domart adds.
“However, 2021 is shaping up to be another big harvest in Madagascar that could easily exceed 2,000 tons. A shortage of supplies is extremely unlikely.”
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