Private label taste innovation: Symrise targets natural and sustainability platforms

30 May 2018 --- Flavor supplier Symrise is eyeing new opportunity in the rapidly diversifying private label sector as it looks to address consumer demands and evolve towards a taste rather than mere flavor approach under the “code of nature” platform. This strategy builds on four pillars: transparency, best natural, technology, and consumer value.

At the “World of Private Label” (PLMA) international trade show, which closes in Amsterdam today, Symrise presents its natural offerings for the private label business. Large, medium and small retailers’ brands are riding this trend and clearly, benefit from it. Visitors can discover how concepts such as naturally delicious, environmentally friendly packaging and reduced sugar and salt work in and for food. Applications for the new Grillicious concept were present, a solution that meets the new requirements in EC regulation around grill flavors.

Visitors could try on-trend beverages, snacks and fresh concepts for the BBQ season, all while learning more about the raw materials used. For example, a strawberry flavored popcorn that combines flavor from Symrise with a brushing of strawberry pieces from the Diana legacy business is being presented. Symrise entices visitors with an assortment of unique drinks and snacks to taste tests, like craft cola, alcohol-free beer, yogurt salad dressing and “homemade” potato crisps.

The branded sector has traditionally been perceived to have a far more developed image than a private label when it comes to innovation, but Alexander Lichter, Vice President Sales, Flavor Division EAME of Symrise sees an evolution.

“I see less and less difference between the private label and branded world. It is all about speed to market, consumer understanding and fulfilling consumer requirements at a granular level,” he tells FoodIngredientsFirst at this year’s event. “In the past, the private label sector took more of a one-size-fits-all approach, with cost and reasonable quality. There are some sectors where that it is still the case. But private label now has tier branding too; with a budget segment, medium quality and premium products all under private label. The differentiation of the value drivers for all private label as well as for branded is blurring and not that different anymore. One requirement is that of agility because the speed to market is really a key differentiator.”

Of course what was clear from walking the show floor at this year’s event is that a multi-prong approach is required to target the highly diverse private label arena. “Not every retailer is driving the same strategy. To be helpful, we need to understand what their strategy is. For some, it is all about reasonable price and quality, but we need to be fast in our actions. For others, it is about being all natural to drive the provenance point. We want to be sure that we provide products to consumers from a very specific region and we want to label what we have very authentically. So we have to be very differentiated in our support to private label companies to be successful with their retail customers,” says Lichter. 

The company is looking to understand further what current demands are in the market. “In the UK, for example, we had to help develop products that meet consumer expectations regarding taste, provenance and raw materials. We have been running a study to support the manufacturers of snacks in the UK, to see what kinds of tastes that these snacks have. We made sure that the insights developed there will be turned into compelling propositions driven by manufacturers to fulfill that. In other cases, it is all about productivity and helping our customers get into formulations and keeping the regulatory requirements of the product untouched.”

Recent consolidation in the flavors market as a whole has led several major players to expand their base beyond the classic flavor arena, to take this more holistic taste approach. Symrise acquired Diana and earlier this year Givaudan announced a swoop for Naturex and most recently IFF revealed plans to buy Frutarom. 

“This drive for naturalness and food versus flavor is one of the key drivers of our industry, for both brand and private label. We have been visionary in the forefront when acquiring Diana, as this is very much deeply rooted in the raw materials. It is almost a backward integration into nature. We were already doing this in the past and it is now becoming part of our DNA,” he says, noting the strawberry popcorn concept as an example of how this could work. 

Lichter notes how the flavors market as a whole is going more into this direction of looking to taste rather than mere flavor. “Competitors of ours are also in this now and discovering that this is an important step. Givaudan and Naturex is an example of going into more natural food systems. We are very well positioned. We already made the decision several years ago to highlight ‘best of nature, best of science’ because I think that food science is an essential component to drive value for the customer and the market,” says Lichter.

“This is about a clear understanding of the market, while making use of technology is, I think, the magic formula to be of the best support for our clients. Whatever we do we try to drive distinctive value for the market without having a second thought. It is about being a good thought partner for our customers,” he concludes.

A video interview with Alexander Lichter, where he discusses the PLMA concepts and trends in private label product development can be found here. 

By Robin Wyers