Synergy Flavors acquires Innova Flavors from Griffith Foods

This strategic purchase expands the savory capabilities of Synergy Flavors in alignment with the innovative new product development happening in meat alternatives, sauces, side dishes and snacks.

“This acquisition offers significant benefits to Synergy customers by providing them access to a proven range of flavors to meet the growing demand for natural flavorings and savory ingredients. In addition, these products complement Synergy’s current offerings for rapidly growing plant based alternative food & beverages globally,” Rod Sowders, president and CEO of Synergy Flavors, said. “Synergy's global footprint and history of investment in acquisitions will allow Innova customers to benefit from the deep flavor expertise and global reach of the Synergy organization.”

Jason Hawkins, CEO of Carbery Group, commented, “We know acquiring Innova Flavors will make sense for our U.S. flavor customers, will enhance our global business in Asia and Central and South America, and bring opportunities right across our platforms of Dairy, Taste and Nutrition. This deal is a strategic opportunity to grow our business, to strengthen our offerings for our customers and maximize what we can deliver for our shareholders.”

Food & Beverage Insider Insights

The upward trajectory for natural flavors is expected to continue as consumers demand food and beverage products made natural, organic and clean label ingredients. In fact, data from Grand View Research estimates the U.S. flavors market size will reach $4.87 billion by 2025. The market research firm also predicts the global natural food colors market size will be worth an estimated $US2.5 billion by 2025 due to high demand in beverage, bakery and confectionery applications.

Artificial just won’t cut the mustard any longer, so formulators are turning to natural sources to color and flavor products that are attractive to consumers—because in the end, if a product doesn’t look or taste good, it won’t sell. In the world of colors, the natural palette is expanding and product developers are using plant-based ingredients such as turmeric, beetroot, annatto, red wine extracts, hibiscus, butterfly pea flower to replace artificial colors.

Consumer interest in flavors—particularly global cuisines—also is witnessing phenomenal growth for several reasons. First, popularity of cultural foods with U.S. consumers has been on the upswing for nearly a decade, with Americans moving out of their comfort zones to explore bolder flavors and more culturally diverse foods, opening the doors to endless flavor options for food product developers and brands. Second, the COVID-19 pandemic has forced people around the globe to retreat to their own kitchens to prepare meals. Many are experimenting with global flavors as a means to stamp their virtual passports with tasty virtual culinary destinations.

There’s also been a lot of mergers and acquisitions in the natural colors and flavors space. In April, Olam Food Ingredients announced it was paying US$950 million to acquire Olde Thompson, a leading U.S. private label spices, seasonings, baking ingredients and spice-related housewares. The acquisition is aligned with Olam’s vision and accelerates its growth strategy of delivering sustainable, natural, value-added food and beverage ingredients and solutions.

In January, McCormick & Co. Inc. acquired FONA International for $710 million in cash. The deal accelerated the company’s flavor growth and strengthens its leadership in clean and natural flavors. On Feb. 1, International Flavors & Fragrances (IFF) completed its $26 billion merger with DuPont’s Nutrition & Biosciences. The deal created global reach and enhanced capabilities that will enable the creation of innovative solutions to respond to customer demands and increasing consumer preferences for natural, healthier and “better for you” products in the food & beverage, home & personal care, and health & wellness markets. The deal follows its 2019 acquisition of Israel-based Frutarom for a US$7.1 billion cash and stock deal that accelerated its Vision 2020 strategy to create a global leader in taste, scent and nutrition.

In 2018, Givaudan acquired Naturex, a manufacturer and marketer of plant-based specialty ingredients for the food, health and cosmetic industries, in a two-part deal that amounted to approximately US$1.6 billion.