Symrise targets Asian growth with research facility
needs of consumers in Asia with the 'dramatic' expansion of its
regional Sensory and Consumer Science Center in Singapore.
The flavours and fragrance firm views sensory and consumer research as one of its core competencies. It has a targeted growth strategy in place for Asia for its flavour and nutrition division, and there are strong indications that this is bearing fruit. In its first half 2007 results posted last week Symrise said that it experienced growth of 9.3 per cent in Asia, and the driving force behind this was the emerging economies of China and India. Growth in these markets was 30.7 and 15 per cent respectively. "Growth… was achieved primarily through regional key accounts," said the firm. CEO Dr Gerold Linzbach said: "Despite all the talk about the global times we live in, it is still incredibly important for companies in our business to have a well-founded understanding of local customs and habits." Symrise has parallel regional centres for Europe, Asia and the Middle East (EAME), North America and South America. But even within the Asia Pacific market there are numerous different cultures, and the interplay between these, global trends and consumer preferences is complex. Moreover tastes in Asia are changing as a result of economic factors that mean a higher proportion of consumers have disposable income to spend on premium products, or foods that do not fit with local dietary traditions. Linzback added that the centre provides "prime conditions for learning about people's preferences and turning this information into innovative, successful products". The company has not given an indication of the level of investment it made in the centre, but it did previously have a small centre that served a similar function there. The set-up of the new centre include statistics programs, rooms for conducting focus groups and for training taste panels, and individual sensory test booths. Symrise consumer research methods involve quantitative and qualitative approaches, both central-location and home-use tests, online surveys and focus groups. During the six month period ended June 30 overall sales rose from €632.3 to €660.9m. The flavour and nutrition division contributed €3111.2m to this figure. Symrise said that 40 per cent of overall sales were derived from emerging markets. EBITDA for the first half of the year was €142.8m, up from €123.5m in the same period of last year. Symrise made its initial public offering on December 11 2006.
