EUROPE – Frutarom, Israel-based flavor and fragrance company has invested US$6.16 million in its newly opened natural color formulations facility at its Etol plant in Celie, Slovenia.
The investment was designated to improve equipment and technology at the new facility, meant to serve 15,000 of Frutarom’s customers in Europe.
Frutarom acquired the Slovenian manufacturer of flavor and fragrance, Etol d.d for US$ 24.9 million in its rapid growth strategy into Europe.
Europe forms more than half of Frutarom’s global market for flavours and fine ingredients for customers in the food, beverage, functional food, flavour, fragrance, pharmaceutical, nutraceutical and cosmetic industries.
According to Ori Yehudai, Frutarom CEO, Etol had a solid reputation of successful cooperation with food and beverage customers in creating new flavour solutions.
Frutarom Etol d.d offers expertise in developing ‘challenging’ natural colors that can be unstable in food and beverage applications.
The new facility expands its variety it offers to customers with innovation to win over the competitive European market.
“Frutarom makes it possible to bridge the gap between consumers who want natural, sustainable products in which they can understand and identify each ingredient with food manufacturers’ need to create a new, functional, tasty product with natural colouring,” said Ori Yehudai.
Frutarom is seeking top ranking among suppliers of flavors and natural specialty fine ingredients through numerous acquisitions.
It announced 100% of shares in Israeli company, I.B.R – Israeli Biotechnology Research Ltd. (“IBR”) for approximately US$21 million, finding various cross selling opportunities in the region.
With other acquisitions such as UK company Flavours and Essences, Frutarom reported a share price up 70% over past year- according to Globes Israel.
To ensure stable and full control of supply chain, it has established various agricultural collaborations with local farmers as well as a reverse integration in order to ensure safe, natural colourants, with complete traceability.
“Placing the customer at the focal point of our business allowed us to effect true change in how the company engages with partners and farmers, while maintaining complete transparency,” added Yehudai.