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Frutarom opens new R&D and production centre in South Africa

11 April 2016  •  Author(s): Victoria White, Digital Content Producer

Frutarom has opened a state-of-the-art advanced centre for R&D, innovation, laboratories, sales and marketing, and production in Johannesburg, South Africa.

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Frutarom’s new centre in South Africa will enable Frutarom to provide its customers in the countries of the region with advanced development and applications services and the use of efficient production methods at the cutting edge of existing technology in this field. The centre will provide Frutarom customers with support and comprehensive solutions in the areas of sweet flavours, savoury taste solutions where Frutarom has built up a position of global market leadership in recent years, and in the combining of health and taste solutions with emphasis on natural products such as natural colours, natural antioxidants for food protection and the extending of shelf life, specialty citrus products and natural specialty fine ingredients with proven health qualities.

In recent years Frutarom has been working on expanding and deepening its activity in sub-Saharan countries which it has identified as growing and developing markets. In 2009 Frutarom set up a local South African subsidiary, in 2013 it acquired the South African flavours company JannDeRee and the American flavors company Hagelin with its extensive activity in African countries, and in 2015 acquired the Indian flavours and fragrances company Sonarome with activity in over 20 African countries.

Africa seen as a ‘major growth engine’ for Frutarom

At the dedication ceremony for the plant, Frutarom President and CEO Ori Yehudai, said: “Frutarom sees Africa as being a major growth engine for its activity. We intend to leverage our development and production capabilities in South Africa for the local South African market and also as a regional innovation centre for the entire continent. Africa continues enjoying a growth rate of over 5% a year. The rapid urbanisation process and expanding middle class are leading to a rise in food and beverage consumption, resulting in growing demand for flavours and specialty fine ingredients. This economic environment provides a suitable basis of activity for Frutarom, which views the emerging markets overall, and in Africa especially, as one of its main growth engines.”

Mr. Darrell Grey, Managing Director, Frutarom South Africa, added: “In line with Frutarom’s global strategy, Frutarom South Africa’s business model has proven successful and an attractive solution for our medium to large sized local customers. The completion of our new R&D and production centre will play a key role in supporting the region and connecting us even closer with our customers, accelerating our growth and market share.”

Mr. Yehudai concluded by saying: “We are continuing to pursue the implementation of our rapid growth strategy which combines profitable internal growth with acquisitions. Frutarom will carry on accelerating its growth in both developed and emerging markets. We intend to continue investing in the rapidly growing regions of Asia, Central and South America, Central and Eastern Europe, and Africa, with the share of our sales from emerging markets having grown from 27% in 2010 to 44% in 2015.”

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