Givaudan Reviews Natural Ingredients Unit to Revive Flavours Division Growth
Givaudan's Strategic Review and Market Performance
By Rafal Wojciech Nowak
Overview of the Flavours Division Challenges
Aug 27 (Reuters) - Givaudan is reviewing options for the underperforming natural ingredients unit within its flavours business, CEO Christian Stammkoetter said on Thursday, as part of a broader push to return the division to earlier growth levels.
Stock Market Reaction
Shares in the Swiss fragrance and flavours maker were down 3.4% by 0940 GMT, after Morgan Stanley lowered its recommendation for the stock to "underweight", citing recent sluggish growth in the flavours division due to its unfavourable mix of products.
Commoditised Natural Ingredients as a Headwind
Stammkoetter told an investor conference that commoditised natural ingredients, such as vegetable powders, were creating significant headwinds for the division, particularly in North America.
Impact on Sales and Growth Comparison
The underperforming portfolio accounts for roughly 7% of the flavours division's sales, which grew only 0.5% on a like-for-like basis in the first half of 2026, lagging the 6.5% growth seen in the fragrance business.
The flavours business averaged 5.4% annual like-for-like growth between 2021 and 2025, the company said in a presentation.
Revival Strategies and Future Outlook
To revive the division, Givaudan will also sharpen commercial execution in the Americas and accelerate its high-growth natural colours business, Stammkoetter added.
(Editing by Milla Nissi-Prussak)
