The Taste of Success Is Bittersweet For Flavor And Fragrance Houses.(Food industry consolidation)

Chemical Market Reporter, June, 2001 by Sauer, Pamela

Consolidation in the food industry and in food retail distribution squeezes the supply chain as flavors and fragrance companies try to increase profitability.

Consolidation within the packaged food industry and retail trade is placing increasing pressure on flavor and fragrance (F&F) companies to seek economies of scale. F&F companies are also contending with reduced growth opportunities and changing consumer and geographic preferences.

"Growth is a challenge for the flavor and fragrance companies," says J.P. Morgan analyst Jeffrey Zekauskas, "The industry was characterized by rapid expansion in the 1980s (excellent results from Europe and the Americas) and poor growth for most of the 1990s (weak results from Europe and Americas). The lower...

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