Givaudan's 5-year blueprint is released: China is the top priority

Givaudan announced its roadmap and performance targets for the next five years: average organic growth will increase 4-5% after excluding changes, and average free cash flow will increase at least 12%. In addition, the company also renamed its two core departments, daily chemicals and edible flavors.
 
Swiss flavors and fragrance giant Givaudan announced on its official website the roadmap for the next five years on August 27. The content includes three growth drivers and four growth factors.

 
Three growth drivers
 
1. Expansion of product portfolio: deep cultivating nutrition, food raw materials and beauty industry
 
Expanding the product portfolio ranks first among the three growth drivers. This driving force combines the value of Givaudan’s main business and subsidiaries acquired since 2014. In the future, the company will continue to expand its products, break through the existing edible and daily chemical flavors and fragrances, natural raw materials and delivery systems, and penetrate into the nutrition, food raw materials and beauty industries.
 
2. Expand customer base: work with small local brands that are constantly emerging
 
Givaudan's downstream industry is changing rapidly and becoming increasingly divided. The current trend is that the emergence of small local brands will promote the growth of Givaudan’s local and regional customer base. At the same time, large multinational and global customer bases still have potential. To become the cooperation choice of all customers, it means to provide a more personalized way to meet the broader needs of different customers.
 
3. Key market strategy: China is the top priority
 
It is necessary to formulate a more focused market strategy based on the growth forecast of global consumption. In the last five-year strategic cycle, Givaudan has invested in a number of projects in high-growth markets, with the goal of getting closer to customers and enhancing understanding of local customer preferences. In the next five years, Givaudan plans to maximize opportunities in mature markets while enhancing its leadership in high-growth markets, especially in China.

 
Four growth factors
 
In the newly released roadmap, Givaudan believes that innovation, nature, talent and community are the four factors to achieve the aforementioned growth goals.
 
In terms of innovation, Givaudan plans to expand and deepen strategic relationships with suppliers, startups and partners, strengthen collaboration and co-innovation with customers, and develop new solutions.
 
On the natural side, the company will further develop natural products and alternative solutions to protect precious natural resources; strengthen responsible procurement and traceability programs, and promote suppliers to participate in environmental protection actions.
 
In terms of talents, we must attach importance to, inspire talents, and embrace diversity.
 
In terms of the community, it is necessary to give back to the place where the procurement and operation are located, and promote responsible procurement in depth to protect local people and the environment.
 
The two core departments have been renamed to show the new direction of development
 
Givaudan's flavors and fragrances division will be renamed "taste & wellbeing". The new name indicates that the company is committed to reshaping the future of food. It is no longer limited to food tastes, but to create food experiences that benefit people's physical and mental health and the planet.
 
Its fragrance division will be renamed "fragrance & beauty", highlighting the division’s new vision: to become a highly sought after partner for personal, clothing, hygiene and home care, and Perfume and beauty industries.