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Frutarom expands capabilities at New Jersey plant

By Hank Schultz , 06-Nov-2012
Last updated the 06-Nov-2012 at 14:53 GMT

Frutarom Health USA has announced it will begin deploying its proprietary filtration technology, called HyperPure, at its facility in North Bergen, New Jersey.

The technology was originally developed in Frutatom’s Swiss facility for the processing of botanical raw materials.

“This increases our production capacity, allows us to respond more quickly to our customers’ demands, and as with all of our New Jersey-produced ingredients, we now have kosher certified ELFA with a shorter time to market,” said Jeffrey Lind, health business vice president at Frutarom. 

The HyperPure technology has several goals. First, it was developed to ensure that contaminants is the raw materials are removed. Secondly, the system was designed to preserve the multi component nature the of the source plant’s medicinal compounds and thirdly, it was designed to do all this in an environmentally-friendly manner.

“The majority of Frutarom’s core products are produced using this technology, including: Benolea (olive leaf), Portusana (purslane) and Neuravena(avena/green oat), resulting in ingredients with superior safety and stability,” Lind said. “The addition of proprietary clinical studies behind these products ensures the best combination of high quality, safety and effective natural ingredients.”

Frutarom growing rapidly

Frutarom has been riding a growth streak of late. Earlier this year the company posted double digit sales growth for its second quarter, driven by acquisitions, organic growth, price increases and falling raw material costs.

Frutarom reported pre-tax profit growth of 28.3%, from $22.2 million in the three months to June 30 to $28.5 million on sales up 26%, from $130.6 million to $165 million, comparing the same periods.

The company’s growth strategy had contributed significantly to the results.  Frutarom CEI Ori Yehudai said: “...we expect it to lead us to achieve a further significant leap in Frutarom’s sales as well as profits and margins over the coming quarters, and especially in 2013.”

North America a key market

Yehudai identified North America as one of the key markets for the company.

Providing the new capabilities at the New Jersey plant is an expression of Frutarom’s overall strategy for the Health Division.  Customers today want more than just a price list, Holger Riemenspieger, the general manager business unit, Health, said at the recent Vitafoods Europe show in Geneva.

“What we can specifically learn is the concept selling approach,” Riemenspieger said. “So not offering just single ingredients, but total concepts, packages for the customer.”

In addition to the developments in New Jersey, the Israeli-headquartered supplier recently expanded its Negev desert algae polysaccharide production potential by 30% to 10 tons in response to growing demand for the skin health products it is used in.

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