THE NATURE OF OUR BUSINESS – STABLE GROWTH - Symrise

are increasingly strict and expensive regulations worldwide
regarding product quality, safety and environment. Symrise is one
of the few companies that fulfills all of these conditions. None of
the market leaders has it easy, but despite the economic uncertainties,
we have a certain stability because of this.
Do you expect the flavors and fragrances industry to
undergo changes in 2009?
The market is still very fragmented. There are more than 500 companies
in the F&F market. The top four manufacturers together
have a market share of more than 50%. The consolidation process
will continue. The big companies in the top tier will have better
growth opportunities than the small ones. I expect the top tier of
our industry to remain stable. I’m not afraid of new players, but I
expect competition between the market leaders to stiffen.
How does Symrise differ from its rivals?
In general terms, our strategy and the consistency with which we
pursue it. Less generally, the specific way we are positioned in the
market. This is often overlooked. We have a different self-image, a
different customer portfolio, and we are organized differently.
With our “AND” products we have laid the foundation for gaining
new market shares in established as well as new, rapidly growing
markets in the future. Unlike our main competitors, we are active
in the growing market for cosmetic active ingredients in addition
to the classic F&F market. We are putting our emphasis on
care and nutrition within the F&F context. We see additional
potential here.
Our customer portfolio is well balanced. We do 30% of our business
with international core customers. We achieve about 70% of
our sales with regional and local customers in emerging markets
where our size and experience are particularly important to young,
growing clients. Our organizational structure permits transdivisional
synergies, and at the same time each division has the independence
it needs to make quick and efficient operational
decisions.
How do you assess your chances for 2009?
Our chances to keep growing faster than the market and the competition,
and to improve our profit, are good. We have a stable or
growing presence in all the important markets worldwide. We have
access to the necessary raw materials and a supply chain that can
combine constantly improving flexibility with efficiency. We are in
Annual Report 2008 Symrise AG 33
“Our chances to
keep growing faster
than the market and
to improve our profit
are good. We have
a stable or growing
presence in all the
important markets
worldwide.”
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