Firmenich strengthens African foothold with Flavourome acquisition

18-Dec-2017 - Last updated on 18-Dec-2017 at 11:31 GMT

Firmenich is to acquire South African flavour supplier Flavourome, a strategic move to bring the 800 million consumers in Sub-Saharan Africa closer.

Chairman of the board Patrick Firmenich said the acquisition was “a natural extension” of the company’s commitment to building long-lasting partnerships in the region.

The Switzerland-headquartered supplier, which has had operations in South Africa since 1988, said it has set “a strategic commitment” to Sub-Saharan Africa and last year opened a flavour facility in the Nigerian capital of Lagos.

“The Sub-Saharan Africa region, with its population of 800 million, represents a strategic growth market for Firmenich,” he added.

Flavourome has a liquid and powder plant, both located in Midrand, Johannesburg.

It primarily manufactures sweet flavour ingredients in both liquid and powder format but it also manufactures flavours, dustings and seasonings for savoury snacks such as potato and corn chips, popcorn, peanuts and Biltong, a dried, cured meat originating from the Southern African region, such as Botswana, Namibia, South Africa and Zimbabwe.

Its portfolio also includes colours, sweeteners, vitamins and premixes.

Founded in 1998, privately-held Flavourome was Firmenich’s official distributor for the region prior to this acquisition.

However, by gaining direct access to the South African firm’s customers – in addition to its own manufacturing plant in South Africa – Firmenich said it expects to see its business growth accelerate.

The deal must first be given the all-clear by regulatory authorities such as the Competition Commission but is expected to close by March 2018.

Flavourome is also affiliated with French firm Nigay, which specializes in caramel flavours and colours and associated with London-headquartered Finlays Tea Extracts.

The CEO of Flavourome, David Wright, said Firmenich would be “a great long-term home for our employees”.

“We are proud to have developed strong relationships with leading food companies in South Africa over the years that have supported our commitment to innovation and service. I am also tremendously grateful to all the Flavourome employees who have fuelled our success,” he added.