Symrise targets growing Russian flavours market
Russian market with radical product concepts and a new management
Under the leadership of Dmitri Kondratev, the new divisional manager of flavours in Moscow since 1 September, the Germany-based company intends to use the upcoming Ingredients Russia tradeshow in Moscow as a springboard for further growth.
By doing so, Symrise hopes to avoid missing out on a vital new emerging market. Historically, flavours production has been dominated by the US, Japan and western Europe, but a recent report from Freedonia warns that up to 2008, these areas will lose market share to developing areas of the world, as the product range and demand expands.
China leads the way in spurring growth in Asia Pacific, a region slated to advance at about 7.3 per cent, year on year, until 2008. This compares to Western Europe and the US with 3.7 and 3.3 per cent growth respectively.
Russia therefore also represents an untapped opportunity for expansion and further diversification. More than 50 per cent of the Russian market is controlled by international companies such as Mars, Nestle, Kraft Foods, Dirol-Cadbury and Perfetti Van Melle, and these firms are increasingly looking for ingredients suppliers that can provide international solutions.
Symrise will be represented in Moscow by all three of the flavour division's business units: savoury, sweet and beverages. The functional drinks segment will feature Omega-3 enriched drinks that combine fruity and exotic flavours.
The company also plans to launch its Hot Choc instant chocolate drink product, targeting Russia's growing affluent market.
In connection with encapsulation technologies, Symrise will display a range of release systems for flavours and fragrances with its Evogran, Evoglass and Evocap products. One current research example in the segment of sweet flavours consists of Fruit Crispies - compacted fruit flavours with high natural fruit content.
The Ingredients Russia show runs from 8 to 11 November.
Globally, the flavours and fragrances industry is estimated at about €14.8 billion, of which the top five players account for 40 per cent of the market. Swiss firm Givaudan continues to lead the industry with an estimated 13.5 per cent slice of the market in 2003, followed by US International Flavours & Fragrances with an 11.7 per cent share.
Firmenich, private equity-owned Symrise and ICI-owned flavours company Quest International occupy about 9.8, 9 and 6.1 per cent of the market respectively.