Frutarom hires GM to hone health focus

Frutarom has been snapping up healthy ingredient firms for the last couple of years due to an ambitious strategy to build presence in the high potential healthy market, back up claims with science and speed product development.

The Israeli company has appointed a new general manager to lead its healthy business unit – Salvatore Gargano. Gargano brings a career of experience in the healthy ingredients sector with him, as his most recent post was global director of Cognis’ Actives division, in its care Chemicals unit; for a decade prior to that marketing Indena.

His mission will be to usher in new strategies in the health market, by further leveraging and integrating the healthy ingredient businesses Frutarom has acquired in the last few years. These include plant extract and vitamin firm Adumim and RAD Natural Technologies, as well as a slate of flavour firms.

The aim is to align all processes globally, within the health business unit. Frutarom is also build its collaborations with commercial and scientific partners so it can bring innovative, scientifically backed up solutions to market faster.

“A successful consumer health product requires a precisely balanced combination of ingredients and formulae supported by science, marketing and regulatory back-up,” Gargano said.

President and CEO of Frutarom Ori Yehudai said the strategy for health has three underlying drivers.

The first is to retain business by focusing on the highly-qualified functional foods sector and pharma OTC sectors.

The second is to extend business by supporting the basis of scientifically-sound health claims, so that customers can penetrate new markets in Asia and Eastern Europe.

The third driver is to focus on new developments, by working on customised projects, such as taste improvements in formulations that include healthy ingredients.

In full year 2008 Frutarom reported sales growth of 28.5 per cent to US$ 473.3m. Gross profit increased by 34.8 per cent to $ 176.3 million, operating profit was up 64 per cent to $ 56.6m.