As part of its 2025 strategy to strengthen the capabilities of its fragrance business, Givaudan has announced that it has entered into an agreement to acquire Custom Essence, a US fragrance house.

Founded in 1981, Custom Essence is a family owned and operated business in New Jersey, USA. It specializes in natural fragrance formulation and creates fragrances in a variety of categories for both local and regional customers and larger clients. The company employs 70 people worldwide.

Custom Essence's unique expertise in creating natural fragrances has been a major contributor to its success in the U.S., particularly in the area of natural products for the personal care category. Guided by a culture of creativity, agility and quality, the company has earned the loyalty of a broad customer base for which it has created some of America's favorite fragrance products.

Maurizio Volpi, President of Givaudan Parfums et Beauté, said: " We are delighted to announce the acquisition of Custom Essence, as it is fully in line with our 2025 strategy aimed at strengthening our presence with local and regional customers and developing our capabilities in the natural fragrances sector. Custom Essence will bring real expertise in managing a high-growth customer segment, as well as valuable know-how in the formulation of natural fragrances. I look forward to warmly welcoming all Custom Essence employees to the Givaudan family."

Prashun Patel, director of operations at Custom Essence, meanwhile, said: "We are very proud to join Givaudan and bring our knowledge of natural fragrance creation, as well as our local and regional customer base. Givaudan's technology, regulatory, supply chain and international manufacturing support will enable us to rapidly increase our capabilities to create even more value for our customers. We look forward to working together to create the beautiful fragrances that consumers love."

Terms of the transaction will not be disclosed, but it is estimated that the Custom Essence business would have represented around 40 M$ of additional sales to Givaudan's results in 2020, on a pro forma basis. Givaudan will finance the transaction, which it expects to complete in the fourth quarter of 2021, from existing resources.

In order to sustainably increase its capacity in natural products, boost production of upstream integrated ingredients and create new, larger capacities in Mediterranean flowers and materials, Symrise has created a joint venture - in which it becomes the majority shareholder - with the Neroli Group. This partnership benefits from Symrise's expertise in sustainable ingredients, such as Madagascan vanilla, and that of the Neroli Group, an independent perfume manufacturer in the region for over 35 years. Neroli will thus be able to carry out its plans to diversify into the cultivation and exploitation of perfume plants.

The two partners chose the Grasse region as the site for the new company because of the city's unique climate, its unique plant and flower culture, and its perfumery heritage, combined with Symrise's history and roots in Grasse. Symrise and the Neroli Group want to create the most technologically advanced and sustainable plant in the region, so that a center of expertise can emerge that will produce its own natural ingredients in an ecologically and socially responsible way. To achieve this, the joint venture will build a fully-equipped plant and R&D laboratories, while relying on the development of ingredients with local partners.

The company intends to establish long-term partnerships with local farmers and promote the richness of the region's most emblematic flowers, including rose, jasmine, orange blossom and mimosa. At the same time, the company will be working with exclusive materials grown in other parts of the world, including Madagascar, as well as with exceptional ingredients sourced from specialized farmers and producers. With this initiative, Symrise is also committed to improving the social conditions of these expert growers, which will result in 49 new natural ingredients, reinforcing Symrise's position as a key player in natural fragrance ingredients.

"Symrise has been purchasing sustainably integrated natural raw materials from Madagascar and elsewhere for many years. We are now in a position to considerably expand our activity around natural ingredients by working with the Neroli group. By moving to Grasse, with its centuries of heritage and know-how, Symrise finds itself at the center of perfumery. We begin this new venture with respect for the great tradition of craftsmanship, and we're just as excited about bringing forward true innovation and sustainable processes to honor the history of perfumery."explains Ricardo Omori, Senior Vice President Symrise Fine Fragrance.

"Our paths crossed with Symrise at just the right time when the Neroli Group was planning to expand and diversify its natural business. Our creativity and agility as a dynamic organization on a human scale will bring authenticity and spontaneity to the business. Our partnership with Symrise conveys a message of strength and vision to address sustainability in the future of perfumery.adds Christian Dussoulier, CEO of the Neroli Group.

Neroli, in a few words

The Neroli Group was born from the merger of the perfume houses Creations & Parfums and Floressence. Founded in the 1980s in the Grasse region, in Saint-Cézaire-sur-Siagne, in the south of France, the two brands were built on the know-how of fine raw materials, from the cultivation of natural ingredients to their transformation, offering their national and international customers high-quality fragrance compositions. An independent, family-owned group, Neroli brings together passionate perfumery experts in the pure tradition of the "Pays de Grasse", and promotes its craftsmanship worldwide.

Firmenich and MG International Fragrance Company today announced the construction of a new regional fragrance production hub on the MG International campus near Istanbul, Turkey. The 47 million Swiss franc investment will provide 20,000 tons of additional capacity to serve the dynamic markets of Turkey, the Middle East and Central Asian countries.

"This project is an important milestone in Firmenich's partnership with MG International Fragrance Company in 2019, demonstrating our shared commitment to providing a winning service to our customers and the strength of our engagement in this dynamic region, said Gilbert Ghostine, CEO of Firmenich. This state-of-the-art facility will be a true perfume production hub, meeting the rapidly growing demand of small and medium-sized customers across Turkey, the Middle East and Central Asian countries."

 "We are very proud that our legacy of 186 years of combined fragrance business experience will continue with the alliance we began only two years ago, said MG International Fragrance Company CEO Aslan Gülçiçek. With Firmenich's continued and unparalleled investments in our country and in our business, we are demonstrating that we are committed to being a key player in these important markets in the region."

The construction of the regional fragrance production center was officially launched at a groundbreaking ceremony at the MG International and Firmenich campus in Gebze Industrial Zone. MG International Fragrance Company's honorary chairman Mişel Gülçiçek, Firmenich's director of operations Eric Nicolas and senior executives from both companies were present. The new facility is expected to be operational before the end of 2023, joining Firmenich's global network of 46 fragrance, flavor and ingredient plants around the world.

With approximately 15,000 square meters of space spread over four floors, the facility will house some of the most advanced digital production technologies and quality assurance labs in the industry. The highly automated plant will provide agile, high-quality service to meet the specific needs of the region's growing small and medium-sized businesses.

Sustainability criteria were integrated into the design of the project from the outset, in line with Firmenich's approach and its 2030 environmental, social and governance (ESG) goals. The factory is planned as a Leed-certified green building (Leadership in Energy and Environmental Design), meeting the highest standards of energy efficiency, environmental protection and working environment.