In its 2007 Annual Report the company states it will continue to invest around 10 per cent of its sales into its research and development programme focusing mainly on consumer sensory experience and perfume performance. Acquisitions and joint ventures strengthen R&D The company cite the acquisition of Quest International as significantly enhancing and expanding the research and development capabilities as well as the joint venture it entered into with ChemCom to create the company TecnoScent. TecnoScent will focus on research into olfactory receptors to better understand the mechanism behind the sense of smell. Givaudan's research and development sector will also concentrate on technologies that enhance the performance of fragrances such as encapsulation for controlled release. In addition, the company cited another area that has recently come under the spotlight in the industry, namely the effect fragrances have on the moods and emotions of the consumer. That consumers' subconscious reactions to fragrances can affect purchase decisions is becoming widely accepted within the industry, which has led Givaudan to focus on extending its research in this area, allowing it to offer the information to its clients. Sustainable projects on the horizon A further focus of the company in 2008 will be the continuation of a number of sustainable and environmental projects that aim to secure further ingredients supply and feed future innovation. In light of this, the company's 'The Scent of the Vanishing Flora' project is set to continue in 2008, collecting scent samples of rare plant flora from botanical institutes and natural habitats. It expects the project to continue to inspire the creative teams and the knowledge to be incorporated into increasing numbers of products. Furthermore, 2007 saw the creation of sustainable partnerships with suppliers of the tonka bean and sandalwood. The creation of long term, supportive partnerships with suppliers allows a level of quality control that the company believes gives it an advantage in the marketplace. In addition, it makes it easier for the company to address possible risks from ingredients shortages, a phenomenon that is not uncommon when dealing with natural ingredients.