Firmenich Fragrances and Flavors to Advance DSM Nutrition Merger Plans

Leading fragrance and flavor group Firmenich is moving forward with plans to merge with health products company DSM to form a key new partnership in nutrition, beauty and wellness, writes Neill Barston.

The move is expected to be completed by the first half of 2023, with the development of new plant-based foods, including snack apps, to become part of the newly conceived combined company.

It will bring together Swiss-based Firmenich’s fragrance and taste businesses, science platforms and associated co-creation capabilities with DSM’s health and nutrition portfolio and renowned scientific expertise.

DSM-Firmenich will have four successful and complementary businesses and said it can “better anticipate and meet the needs of today’s conscious consumers who prioritize sustainability, health and wellness.”

In addition, the DSM-Firmenich merger is also aimed at accelerating innovation for the industry and generating new growth opportunities for the combined customers of the new company. Specifically for the food and beverage industries, the companies said a new global partner could serve the food and beverage industry, combining DSM’s Food & Beverage and Firmenich’s Taste & Beyond businesses.

The combined company’s vast global presence will provide customers with access to an unparalleled network of R&D, creative and application capabilities, informed by local consumer preferences, across regional and local hubs around the world.

Thomas Leysen, Chairman of DSM’s Supervisory Board, said DSM-Firmenich will bring together “cutting-edge creativity and cutting-edge science and innovation” and believes this is a merger that is in the best interest of all stakeholders.

Patrick Firmenich, President of Firmenich, said, “The combination of DSM and Firmenich is ‘transformational’, bringing together two culturally aligned and iconic companies.

Geraldine Matchett and Dimitri de Vreeze, co-CEO of DSM, commented: “Together, DSM-Firmenich will benefit from complementary capabilities, including one of the largest creative communities in the industry, allowing us to unlock new opportunities for customers and position ourselves to deliver long-term growth and increased shareholder value on a sustainable basis. By joining together, we will establish a company that anyone, anywhere in the world, who wants to have a positive impact should aspire to work for.

Gilbert Ghostine, CEO of Firmenich, added, “I am thrilled that Firmenich’s legacy is shaping a new industry leader who will innovate for a better world.”

For Food & Beverage / Taste & Beyond, with combined sales of €2.7 billion, the merger will form a global partner to the food industry with expanded capabilities in taste, nutrition and functionality to provide nutritious and sustainable products.

The new company will lead the transformation of food by creating healthier and more accessible foods and drinks with more natural and sustainable ingredients, including in natural and clean label products; in plant-based foods; and supporting a superior taste experience while improving the nutrient profile of foods (e.g. with vitamins, probiotics and lipids and reducing sugar and salt)

For health, nutrition and care, with sales of 2.2 billion euros, DSM-Firmemich will continue to provide personalized solutions that support people’s health at every stage of life. It will aim to keep the world’s growing population healthy through a broad portfolio of innovative science-backed and sustainable solutions, addressing consumer health and lifestyle needs, for dietary supplement, early nutrition, pharmaceuticals, medical nutrition, improved nutrition for undernutrition and medical device markets.

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