Frutarom expand into Eastern Europe

The Israeli flavours and extracts giant used a substantial loan to continue its expansion into Eastern Europe

Frutarom, which ranks among the world’s top ten flavour firms, last year secured a loan from the European Bank for Reconstruction and Development (EBRD) through its British branch, in order to expand on developments started previously in Europe.

After acquiring Polish company AMCO and Slovenian company Vivita in 2015, Frutarom last year applied for a loan to help refinance these projects.

Awarded a €50 m loan by the EBRD, Frutarom invested €80 m overall into the projects.

In a statement, EBRD said: The market expansion combined with the consolidation of operations will result in continued improvements of operational efficiencies in the operations in Poland and Slovenia. Furthermore, the relations with suppliers and customers in these markets will be strengthened, benefiting all parties.”

Frutarom expansions have been relentless in recent years, with similar acquisitions in South Africa; in recent statements President and CEO of Frutarom Ori Yehudai said the company would continue to seek new acquisitions and expansions throughout the world.

The company set a target of reaching €2bn in sales by 2020.

The EBRD also said it would be “monitoring the Company's environmental and social compliance and progress”.