Dispatches from IFT

Frutarom drinks to functional beverages at IFT

By Shane Starling

- Last updated on GMT

Related tags: Coffee, Flavor, Drink

Frutarom is demonstrating the fruits of its latest acquisition by showcasing a range of functional beverage prototypes at the institute of Food Technologists (IFT) trade show in Anaheim, California.

Frutarom bought Californian firm, Flavor Specialties Incorporated, in March, a move it acknowledges is designed to increase its “presence and share in the US.

The IFT show is the first time the companies have displayed the potential of their new alliance with a series of prototypes such as sports and energy drinks featuring organic and botanical extracts and “new sweeteners”.

Crown jewels

The Israeli ingredients giant is also debuting a beauty drink prototype at IFT using an anti-wrinkle ingredient called Collactive which it is describing as the “crown jewel at the Frutarom booth”.

“We are proud to share our booth with the FSI team and to showcase functional and energy beverages based on FSI’s natural flavors and Frutarom’s healthy ingredients,”​ said Frutarom USA president, Rafi Friedman, in a statement.

“The integration of FSI was a strategic move that will strengthen our position in the US market, specifically in the beverage market. Frutarom will continue to seek opportunities to increase its presence and share in the US.

The prototypes include:

  • a pomegranate-açai two-oz “No-Crash energy shots”
  • an organic drink sweetened with stevia
  • a CoEnzyme Q10, omega-3 and vitamin-fortified sports drink
  • a Latin American-influenced drink with exotic flavors and pineapple-guava
  • iced coffee versions including Café Mocha and French Vanilla

Keen to buy

Israel-based Frutarom is one of the more aggressive players in the food ingredients space and has made a number of acquisitions in recent years. It has shown few signs of slowing down due to the economic recession, buying out UK flavour firm, Oxford, in the first week of January.

It made seven purchases in 2007 alone, a move that was accompanied by an increase in sales of 25 per cent to US$474.3m in 2008, and a 34.8 per cent jump in annual gross profit to bring home $176.3m.

Its acquisition of 20-year-old Flavor Specialities cost $17.2m; Oxford cost $12m.

Flavors Specialities has 38 employees, has operations in Central and South America and notched sales of $11.5m in 2008.

In regard to its foray into the US functional beverages market, Friedman added: “These prototypes are just a few examples to show our visitors how Frutarom can be a reliable partner for tasty and healthy success.”

Frutarom trades in 120 countries, has 1,500 employees worldwide and manufacturing facilities in Europe, North America, Israel and Asia.

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