KEY INTERVIEW: Faravelli Uses A Novel Approach to Customer Communication
28 Apr 2015 --- Use of innovative multi-media communication techniques on a business-to-business model is what has set Faravelli Group apart and led to it being shortlisted to the finals of the European Business Awards this May. Faravelli, which trades in and distributes food ingredients as well as supplying the pharmaceutical, cosmetic and biochemical industries with ingredients, uses a variety of media like Twitter, LinkedIn and Facebook to stay in touch with its customers. Dr Guido Rovati, Sales & Marketing Director of Faravelli Group spoke to FoodIngredientsFirst about how Faravelli has kept up with the times since its inception in 1926, including the opening of a new office in the US last year, and the launch of Faravelli Trading.
As the business has grown, from a small trading company supplying the photographic industry in the early part of the last century, to a global supplier of food and pharmaceutical ingredients, Italian company Faravelli has opened offices around the world, including in Germany, Czech Republic, Spain, China and the US.
The biggest proportion of its business is to the food and supplement industry, where Rovati says there is also a huge amount of innovation and activity.
“The area with the most activity is in China at the moment. Things are changing fast and that is leading to an increase in prices across the board as a result of the decentralization of many parts of the industry.”
“A good example is the preservatives used. Most ascorbic acid and potassium sorbate is sourced from China. These products are very important to food manufacturers as preservatives. European production stopped and moved to China as a result of the difficulties with processing and the waste and pollution that caused. As China was becoming more developed, it took on much of this processing but it faces a pollution and overcrowding problem of its own as industry has taken over in certain areas. The Chinese government is trying to reduce the impact on cities so it is giving companies incentives to move out of the heavily industrialized areas. This means new production facilities and in many cases increased costs, which of course, are being passed on to the customer,” explains Rovati.
While this has led to price increases, Rovati explained that with the whole industry facing this pressure, the impact on Faravelli is minimal. “We just have to work closely with our customers to protect them as much as we can,” he said.
Back in Europe, the food and supplements markets are booming, with a consumer desire for increased shelf-life and supplements to aid healthy aging, relaxation and slimming coming top of the list for supplements companies.
Rovati feels that while the supplements market is eager to move forward, the industry is being held back in Europe by regulatory issues. “Legislation is creating limits in the supplements market, specifically in relation to claims that can be made,” he says. “These legislative issues are there to protect the consumer, but can limit the industry. EFSA looks at an ingredient and whether it can be used. A better way may be to control the dose of an ingredient, not limit its use altogether. In the US, the FDA also has controls, but they don’t seem to be so tough on the food supplement market.”
Nevertheless, the demand for supplements, particularly those that make the aging process easier, is strong. The biggest emerging area is that of motility. Staying nimble, without sore joints or advanced muscle wasting is a big requirement. In many areas of the world the aging population is also an affluent one, so they may be more willing to invest in a more healthy aging process.
With an increase in the pace of life, many consumers are looking for something to help them de-stress, relax and sleep better. This is another area that Rovati highlights as one to watch in the future.
But in terms of ingredients, it is algae and its related products that continue to steal the show. Spirulina, the blue-green derivative has increased in popularity due to its many health benefits. It is rich in protein, vitamins, minerals, and carotenoids, antioxidants that can help protect cells from damage. It contains nutrients, including B complex vitamins, beta-carotene, vitamin E, manganese, zinc, copper, iron, selenium, and gamma linolenic acid (an essential fatty acid).
According to Rovati, as well as using the algae as a powder, some companies are looking into other applications, particularly in relation to extracting the carotenoids and to using algae’s properties to adapt the texture of foods.
Faravelli is, of course, always looking for ways to expand and reach as many customers as possible. As well as its novel communication with customers, it has launched Faravelli Trading, which aims to expand its presence in areas where there are no offices or Faravelli base.
Says Rovati of the Faravelli Trading website: “The trading company will work in strong synergy with the other sister companies of the group, and it will deal with international trading of food, feed, nutraceutical, and fine chemical commodities and raw materials.”
“With a broad and very comprehensive list of products, competitively sourced from world-renowned suppliers and delivered anywhere in the world, Faravelli Trading provides a high-level service, technical support and the best logistics solutions in order to reach customers anywhere in the world,” concludes Rovati.
By Kelly Worgan
