Published Feb. 18, 2021 Courtesy of International Flavors & Fragrances
UPDATE: May 13, 2021: International Flavors & Fragrances reached an agreement to divest its food preparation business to Frulact, Chairman and CEO Andreas Fibig said in the most recent earnings call. Terms of the deal were not disclosed, and it is expected to be completed in the third quarter. On the call, Fibig said the business contributed about $17 million to IFF s segment sales in 2020, and this divestiture is the first step in the ingredient company s portfolio optimization strategy. Frulact is a European company that specializes in food and beverage preparation.
Dive Brief:
International Flavors & Fragrances is looking to divest some of its assets, Bloomberg reported, citing people who were familiar with the matter. The ingredients powerhouse just completed a $26.2 billion merger with the former DuPont Nutrition & Biosciences division earlier this
Dive Brief:
International Flavors & Fragrances published unofficial pro forma results from fiscal year 2020 and videos demonstrating the future growth potential of the company following its $26.2 billion megamerger with DuPont Nutrition & Biosciences division. The deal officially closed Feb. 1.
IFF s Nourish division which includes its ingredients, flavors and food design components brought in the most sales, worth $5.8 billion last year. The Health and Biosciences division is the second largest, with nearly $2.4 billion in sales. Scent brought the combined company about $2.1 billion in revenue last year, while Pharma Solutions had about $839 million.
IFF has been transforming into a force to be reckoned with in the ingredients space following several key acquisitions, including the DuPont division at the beginning of this year and the $7.1 billion purchase of flavors and natural ingredients powerhouse Frutarom in 2018. The new IFF has not yet scheduled its next earnings
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This is the first article in a four-part weekly series that looks at how food and beverages companies fared during the pandemic. The second part, also published today, features charts comparing several publicly traded food companies pandemic-period sales to those a year prior.
Next week, Food Dive looks at the companies that did not follow the same growth pattern as most.
While 2020 was a bad year for most businesses, many people and health in general, the food business was booming.
As a whole, CPG food and beverage saw unprecedented growth, with industry sales up 12% in 2020, according to Stacey Haas, a partner at McKinsey & Company. A Food Dive analysis of earnings reports from publicly traded food companies in the U.S. showed sales growth in a single quarter up as much as 38% over the same quarter in 2019.
CPG giants reshape portfolios with significant divestitures, limited acquisitions The great SKU rationalization last Spring caused by pandemic-related supply chain constraints and consumer stockpiling not only forced CPG companies to pause production temporarily of some products, but it prompted many to reevaluate their product mix and overall portfolios long-term – triggering an industry-wide reshuffling of brands that could reset the scoreboard in the coming years.
Executives of several large CPG players at the Consumer Analysts Group of New York 2021 virtual conference this week noted they were
“reshaping” their company portfolios to better meet evolving consumer shopping habits and demands during and after the pandemic – a process that for many means shedding under-performing brands or those that no longer fit within new focus areas.