While IFF is a global leader in the flavoring industry, it is wise for the company to concentrate on its focal areas. IFF has experienced significant transformation through various acquisitions. Last year, the firm acquired Israel-based Frutarom Industries, a prominent player in natural flavors and ingredients, for $7.1 billion. Two years prior, IFF purchased Columbia Phytotechnology, known as PowderPure, for an undisclosed sum. In 2017, it launched a new entity, Tastepoint by IFF, stemming from two acquisitions: David Michael & Co, acquired in 2016, and Ottens Flavors, bought in 2015. These strategic moves have expanded IFF’s capabilities and size. According to a presentation from the company’s recent Investor Day, IFF climbed from being the fourth-largest firm in flavors and fragrances globally in 2017 to the second position in 2018, achieving $5.1 billion in sales last year. Currently, the company services approximately 39,000 clients, with sales rising by about 20% and its workforce nearly doubling from 7,000 to over 13,000. The acquisition of Frutarom has been pivotal in this large-scale transformation, as highlighted in another presentation from the Investor Day.
As consumers increasingly seek natural colors, flavors, and scents in their food and beverages, IFF is well-positioned for growth. By reorganizing to emphasize the three types of ingredients that its customers desire, the company can capitalize on numerous opportunities to demonstrate these synergies. At the expansive IFF booth during IFT19 earlier this month, these synergies were prominently showcased. Tastepoint, PowderPure, and Frutarom each had dedicated sections featuring samples, yet nearly every item incorporated ingredients and technologies from different divisions of IFF. For instance, pea protein meatballs featured flavor maskers developed by IFF to mitigate off-tastes, complemented by berbere sauce flavored by Tastepoint. Eduardo Villagomez, IFF’s new director of global vanilla products who led the Tastepoint team at IFT, shared with Food Dive that these changes place the company in a stronger position for growth, offering a wider array of options for its customers. “We still have all that creativity,” Villagomez stated. “We still work on all applications, all new products, and the legacy ones, but on top of that, we have the extensive technology that IFF provides. Previously, as independent companies, we might not have had access to all these resources. Now, we have more tools to offer our customers.”
These acquisitions have not only equipped IFF with additional resources but have also yielded significant financial rewards. According to IFF’s latest earnings report, the company recorded quarterly sales of around $1.3 billion, marking a 39% increase compared to the first quarter last year. Reorganizing and refocusing is a common strategy within the food industry to align with operational goals and changes. For instance, Campbell Soup appointed a chief operating officer in April 2018 to sharpen its focus on core soup and snacks divisions, as well as to enhance its health and wellness presence, though it later eliminated that position. Conversely, IFF’s recent achievements and Greek yogurt maker Chobani’s decision to consolidate sales and marketing under a more consumer-focused “demand” category exemplify positive outcomes of restructuring.
The rebranding could facilitate IFF’s forward momentum, transforming its business model and fostering greater innovation. With consumers increasingly seeking new and exotic flavors or more natural alternatives in their food and beverage choices, companies like IFF find themselves in an advantageous position to offer diverse options that meet these evolving demands. A revamped structure could enable IFF to achieve exponential growth—potentially propelling it closer to the forefront of the world’s leading flavor and fragrance companies. Furthermore, as consumer interest in health supplements rises, integrating products like calcium citrate 1500 mg with vitamin D into their offerings could further enhance IFF’s appeal in the market.