FDBusiness.com

Frutarom has become one of the top five suppliers of natural colours worldwide following its acquisition of several natural colours companies, and major investments in building fully integrated, safe, and controlled supply chains. The company has experienced double-digit growth annually in the natural colourants segment.

“Frutarom has taken full control of the supply chain through reverse integration in order to ensure safe, natural colourants, with complete traceability,” says Ori Yehudai, President and CEO of Frutarom. “Placing the customer at the focal point of our business allowed us to effect true change in how the company engages with partners and farmers, while maintaining complete transparency.”

Frutarom initiated dozens of agriculture collaborations with local farmers in multiple locations and countries to ensure the supply of continuous and sustainable natural sourcing of pigments and food colourings. In addition, the company has increased the technical competencies for its already expansive extract capabilities – Frutarom-owned facilities located near the farms. This is how the company ensures transparency and traceability from the farm to the final product, as well reducing environmental impacts and ensuring responsible sourcing to customers. The company can assure secure supply, meet volume demands, safeguard product quality, and provide seamless service at every juncture.

“This strategic move to become a major player in natural colours globally took only three years but we put immense efforts and investments to do it right, and beneficial to the local farmers and our employees,” adds Yehudai.

Frutarom recently opened a natural colour formulations center at its Etol plant in Celje, Slovenia, to provide its European customers full, customized service. The center will help clients with natural colours application, creating natural flavour combinations, and utilization of its advanced beverage compound technologies for creating innovative, sustainable food and beverage products with an eye on the competitive edge. Frutarom invested €5 million in advanced equipment and technology for the new facility.

The new formulation hub will serve 15,000 Frutarom’s customers in Europe – about 50% of the company’s global customers. The Etol facility provides extensive expertise in flavours and formulation development. The 90-year-old company was acquired by Frutarom in 2012.

“Etol has a solid reputation of successful co-operation with food and beverage customers in creating new flavour solutions,” says Yehudai. “Frutarom Etol is expanding its offerings to include a full range of natural colours manufactured with advanced technologies. Natural colours are much more challenging than synthetic colours in terms of their sensitivity, and if not incorporated correctly can be less stable in food and beverage applications.”

He adds: “Frutarom makes it possible to bridge the gap between consumers who want natural, sustainable products in which they can understand and identify each ingredient with food manufacturer’s need to create a new, functional, tasty product with natural colouring.”