Expanding ingredients company Danisco strengthened its position in Asia this month when the company announced that it has set up its flavour headquarters for the Asian region in Singapore.
The move for Danisco follows the acquisition in May 2002 of Belgian-based flavour house Perlarom. As part of the takeover, Danisco acquired Perlarom's flavour plant in Singapore, as well as a sales office in China.
"Through the acquisition of Perlarom, Danisco takes a giant step towards achieving its goal. Perlarom complements Danisco in Asia extremely well," said Stephen Catling, president of Danisco Flavours at the time of the purchase.
Danisco saw the Pelarom purchase as of strategic importance with the offices in Singapore serving as an entrance to the entire South East Asian flavour market - currently experiencing solid growth rates.
"Application of flavours in Asia is rapidly increasing and that is why we should be closer to our customers in this part of the world," said Steen Londal, a business manager at Danisco. He added that Danisco believes a stronger position in Asia is one of the factors that will bring the company up to among the five leading flavour manufacturers in the world.
In a statement this week, the company said that whereas Danisco is heavily involved in flavours for the food industry and Asian customers servicing the global market, Perlarom has established sales to local producers of beverages in the region, including various kinds of canned soft drinks and coffee beverages. The company hopes that the synergy between the two businesses will provide Danisco with a wider product range.
While Danisco's plant in China will take over the flavour production aimed at Perlarom's Chinese customers, the company is contemplating gradually transferring its production of flavours for the South East Asian customers from Denmark and England to Singapore.