Axxence Aromatic expands US market presence with Natural Advantage merger
Natural aroma ingredients supplier Axxence Aromatic and Natural Advantage, a US manufacturer of natural and kosher flavors, have signed an agreement to merge.
The move is expected to improve Axxence’s market reach and portfolio in the F&B and fragrance sectors. The German wholesaler aims to strengthen its presence in the US market by adding a local production site and an improved distribution network. This will allow it to gain access to new markets, including Latin America.
Axxence will take over some of Natural Advantage’s production assets in Louisiana, along with inventory and intellectual property rights.
“By combining our competencies and resources, we enhance our geographic reach and customer base and amplify our capability to produce complex natural aroma ingredients with guaranteed traceability, exceptional product quality and expedited delivery. Together, Axxence and Natural Advantage are positioned to meet the growing demand for natural and sustainable products in our industry,” states Ron Honing, CEO of Axxence.
Meanwhile, Carol Callahan, founder and CEO of Natural Advantage, expects the merger to help unlock “new heights.”
“This business combination not only provides exciting opportunities for our employees and customers but also ensures the continued success and growth of the business we have built.”
The deal is subject to customary closing conditions and financial details are not disclosed. The merger is expected to close in mid-October.
Flavors and fragrances
The flavor and fragrance market is in high demand across various industries, including F&B, personal care, cosmetics and household products.
The new group will offer a portfolio of over 475 products and compounds, high-quality service, faster lead times and improved local market expertise. With approximately €70 million (US$76.6 million) in combined revenues, the companies will operate three production sites with distribution across 45 countries.
In other industry news, Spate’s September Fragrance Trends Report indicated consumers are developing a stronger connection with fragrances and are seeking “innovative ways” to incorporate them into their routines.
