#Trendspotting: Supplier Shake-up – Navigating Change and the Impact on Brands in the Face of Mergers and Acquisitions
Your source for the most up-to-date information on emerging food and beverage trends.
Reflecting on 2023 alone, the following M&A activities have occurred across the flavor, fragrance, and ingredient industry:
Robertet acquired Aroma Esencial for their “know-how, a high-end industrial tool for fractionation and molecular distillation, […] and strategic products for fine fragrances.”
OC Flavors acquired Novotaste for an expanded footprint in Canada and the NE U.S., which includes a test kitchen and sensory lab.
Batory Foods acquired Tri-State Companies whose 100k ft2 distribution center offers “cutting-edge cold storage solutions” which will help reduce shipping times.
DSM and Firmenich merger complete
Doehler and Ixora Scientific entered an investment partnership for taste modulation research
Univar and Kalsec entered an exclusive distribution agreement in Colombia
Symrise acquired stake in EvodiaBio
If you’re working with a company that acquires additional capabilities, facilities, or ingredients, you may have some unrealized gains.
Advantages can include:
Access to new and specialized expertise
Access to novel and disruptive technology
A larger selection of items from an expanded portfolio
Economies of scale driving costs down
Increased R&D capabilities
Supply chain improvements
Shorter project timelines
If you’re working with a company that acquires additional capabilities, facilities, or ingredients, you may find there are some things missing.
Depending on the size of your business and the new entity, it may be harder to get a hold of the best person to deliver the support you need
Lack of individualized attention to projects, customization, and flexibility
Increased costs as consolidated financials are evaluated, new pricing strategies roll out, and fewer entities to offer competitive pricing
Offerings may change as companies evaluate new opportunities and next phase of growth
Slowed pace may be informed by additional rigor or red tape due to larger size and/or additional policy and process implementation
Have you encountered any challenges resulting from M&A activity of a flavor or ingredient supplier? We’d love to hear about your experience and learnings. Was there more of an upside or downside?
Something to keep in mind when moving forward with the optimization of your current portfolio or expansion into new categories is the value in collaborating with agile partners. As a reliable and responsive supplier of flavors, taste modulation ingredients, and sweeteners designed for our product development team and often distributed directly to other product development teams, Imbibe is focused on maintaining that human connection for every project we touch, whether we’re working with the brand directly, through a co-man, or an ingredient supplier. Don’t get lost in the chaos – with Imbibe’s expert ingredients and guidance, you’ll get great tasting products that fit your planned timelines.