Haifa (Israel)-headquarted Frutarom has become one of the top five suppliers of natural colours worldwide following its acquisition of several natural colors companies, and major investments in building integrated supply chains. The company reports double-digit growth annually in the natural colorants segment.
“Frutarom has taken full control of the supply chain through reverse integration in order to ensure safe, natural colorants, with complete traceability,” says Ori Yehudai, president and CEO of Frutarom. “Placing the customer at the focal point of our business allowed us to effect true change in how the company engages with partners and farmers, while maintaining complete transparency.”
Frutarom initiated dozens of agriculture collaborations with local farmers in multiple locations and countries to ensure the supply of continuous and sustainable natural sourcing of pigments and food colorings. In addition, the company has increased the technical competencies for its already expansive extract capabilities. Frutarom-owned facilities located near the farms. This is how the company ensures transparency and traceability from the farm to the final product, as well reducing environmental impacts and ensuring responsible sourcing to customers. The company can assure secure supply, meet volume demands, safeguard product quality, and provide seamless service at every juncture.
“This strategic move to become a major player in natural colors globally took only three years but we put immense efforts and investments to do it right, and beneficial to the local farmers and our employees,” adds Yehudai.
Frutarom recently opened a natural color formulations center at its Etol plant in Celje, Slovenia, to provide its European customers full, customized service. The center will help clients with natural colors application, creating natural flavor combinations, and utilization of its advanced beverage compound technologies for creating innovative, sustainable food and beverage products with an eye on the competitive edge. Frutarom invested €5 million in advanced equipment and technology for the new facility.
The new formulation hub will serve 15,000 Frutarom’s customers in Europe—about 50% of the company’s global customers. The 90-year-old company was acquired by Frutarom in 2012.
“Etol has a solid reputation of successful cooperation with food and beverage customers in creating new flavor solutions,” says Yehudai. “Frutarom Etol is expanding its offerings to include a full range of natural colors manufactured with advanced technologies. Natural colors are much more challenging than synthetic colors in terms of their sensitivity, and if not incorporated correctly can be less stable in food and beverage applications.”