Givaudan looks to capitalise on ‘natural appeal’
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Givaudan looks to capitalise on ‘natural appeal’

Givaudan, the scent and flavour company behind a number of our favourite products, is pushing hard to own the “natural” trend in food ingredients. The natural trend describes a growing preference for things grown in nature, rather than man-made creations – and Givaudan is in a perfect spot to capitalise. With more than 250 years of experience, and the fact that more than 90% of its research is focused on natural ingredients, the company could well achieve its stated aim of becoming “your natural partner”.

You can learn more about Givaudan Naturals in the video below

According to Givaudan, embracing the natural trend is crucial for anyone in the space that wants to continue to see growth. Recent research highlights that 47% of consumers globally are motivated to buy food and beverages that advertise themselves as containing natural ingredients. The reason for this is an increasing focus on health and quality. Since these values are driven by the continuing growth of the global middle class, which can afford to spend extra for better produce, it’s likely to continue to have an impact.

Givaudan’s share price surged by 3% over the last five days

graph 0607 givaudan

SOURCE: Yahoo Finance

There’s also a sustainability angle to the focus on natural resources. Working with nature requires a careful touch, and Givaudan is eager to highlight its credentials in this area. The company made the following statement over its business ethics:

“It is no secret that there is a growing expectation in the food and beverage industry for companies to adhere to sustainability standards – something that Givaudan has been practising with their Sourcing for Shared Value commitment for many years. Where possible, materials are sourced directly from the producer, and the local communities are also supported through numerous social and environmental projects.”

Disclosure

Dominion holds Givaudan in its Global Trends Managed Fund.


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The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.