Ajinomoto and Hasegawa Form Natural Flavors Research Alliance
19 Aug 2015 --- Ajinomoto Co., Inc. and T.HASEGAWA CO., LTD. have reached an agreement on a business alliance regarding research, development and commercialization of natural flavors using biotechnologies and fermentation technologies and entered into a contract today.
For more than a century, Ajinomoto Co. has been pursuing “deliciousness” through taste and food texture technologies. The “deliciousness” of food is determined not by its taste and texture alone, but also by the flavors that enhance these characteristics. Through a business alliance with T.HASEGAWA, a flavor company with world-class materials and technologies, Ajinomoto Co. will develop more substantive technologies to freely control “deliciousness” with the aim of providing the comprehensive value of “deliciousness” to meet the needs of customers in every country.
The global flavors market is worth approximately JPY 1.4 trillion ($11.2 billion), and continues to grow steadily. Within this market, the natural flavors category has grown notably in recent years, backed by a consumer trend toward natural beverages and foods, and high growth is expected to continue. Legal regulations in Europe and the United States define natural flavors as products extracted from or created through fermentation of natural materials. Extraction is currently the most commonly used method, but it has issues of securing raw materials and cost. Consequently, methods using fermentation have been attracting attention in recent years.
With a declared commitment to building on a solid foundation of technology, T.HASEGAWA is using its detailed service, characteristic of a Japanese manufacturer, and its technological capabilities to expand its global operations. It focuses on solutions-oriented sales, in which its R&D and sales divisions act in coordination to resolve customer issues, primarily with high-quality, high-value-added compound flavors and fragrances based on its original technologies. On the other hand, Ajinomoto Co. has original, cutting-edge biotechnologies and fermentation technologies that it has accumulated through the development and production of amino acids. In addition, with bases in 26 countries and regions, it conducts various businesses including foods, amino acids and pharmaceuticals, and the Ajinomoto Group products are sold in more than 130 countries and regions.
The business domains of T.HASEGAWA and Ajinomoto Co. are mutually complementary. The companies will combine T.HASEGAWA’s flavor refining and formulation technologies with Ajinomoto Co.’s biotechnologies and fermentation technologies and utilize the business foundations of both companies to accelerate research, development and commercialization of fermentation-derived natural flavors, which are specialty materials. Through this business alliance, the companies aim to launch fermentation-derived natural flavors and develop business globally within the next several years. In addition, to increase the effectiveness of the business alliance, Ajinomoto Co. will acquire 900,000 shares (2.11%) of treasury stock of T.HASEGAWA at a cost of approximately JPY 1.6 billion through a third-party allocation.
The effect of this matter on fiscal 2015 results is immaterial.
To contact our editorial team please email us at editorial@cnsmedia.com
Subscribe now to receive the latest news directly into your inbox.