Effective immediately, the Swiss flavours and fragrances company’s Flavour Division will be known as Taste & Wellbeing.
The new name, according to Givaudan, better reflects the company’s growing interest in wellbeing – a portfolio which encompasses ‘wellbeing and nutritional focused-solutions’, we were told.
Givaudan has expanded its flavours portfolio ‘in a significant’ way over the past five years. “We have a specific range of products designed for the health market space, such as botanical extracts with health benefits backed by clinical studies,” Division President Louie d’Amico told FoodNavigator.
“As part of the strategic additions we have made to our offering, we have the opportunity to own more of the customer challenge and play a critical role delivery healthy food experiences that consumers value.”
FoodNavigator asked d’Amico if the name change reflects growing demand for ‘wellbeing’ products since the outbreak of COVID-19. “The current situation has, of course, put health and wellbeing high on the agenda for consumers, but this is part of a wider ongoing health, nutrition and wellbeing trend.
“We are seeing this trend drive consumer demand across all regions for food that supports healthy living and positive nutrition without compromising on taste.”
In the same announcement, Givaudan said it has also changed the name of its Fragrance Division, which will now be known as Fragrance & Beauty.
COVID impacts and a new 2025 Strategy
The new division names come as Givaudan announces its 2025 Strategy.
In it, the company outlines plans to further expand its current portfolios through M&A, to “better respond to consumer demand for products that support health and wellbeing, positive ageing and changing lifestyles, whilst meeting their ethical and responsible business expectations”.
From a financial standpoint, Givaudan says it aims to delivery average organic sales growth of 4-5% on a like-for-like basis, and average free cash flow of at least 12%, by 2025.
This comes after the company struggled to maintain business activity in certain divisions in the first half of 2020, due to COVID-19. Overall, the company said it “sustained strong business momentum whilst maintaining its operations and global supply chain with minimal disruption” and achieved ‘good growth’ across most product segments and geographies.
However, Fine Fragrance and to a lesser extent Active Beauty in the Fragrance division, and Foodservice in the Flavour division experienced ‘a significant reduction’ in business activity between March and June this year.
“Nevertheless, we have been highly focussed on maintaining our activities throughout the crisis and have seen strong demand in specific segments of our portfolio,” d’Amico told this publication.
“Whilst visibility remains short and a number of key markets remain in the grip of the COVID-19 crisis, we have confidence in our business and as such our ability to meet our 2020 targets.”