Givaudan hopes to profit from partnership with Colgate-Palmolive

By Katie Bird

- Last updated on GMT

Related tags: Personal care, Givaudan, Colgate-palmolive

Fragrance and flavours supplier Givaudan has signed a partnership
with Colgate-Palmolive which will allow it to collaborate with the
personal care company on future products.

The deal, effective immediately, will allow the Switzerland-based company to work with Colgate-Palmolive on products in its home and personal care divisions. More attractive with Quest ​ Givaudan believes that its acceptance as a possible partner for the international personal care giant stems from the acquisition of Quest International finalised in early 2007 that made the company one of the biggest in the flavours and fragrance market. "After the Quest acquisition we are seen as an interesting and valuable potential partner for the company,"​ Givaudan spokesman Paul Wullschleger told CosmeticsDesign.com. Although the partnership with Colgate-Palmolive is a positive start the hard work has only just begun as now the company will have to bid against its competitors for product contracts, explained Wullschleger. The deal means that the company is recognised by Colgate-Palmolive as a preferred supplier and has a right to bid for product contracts, he said, before adding that Givaudan was confident of future success. The financial details of the deal were not disclosed. Boost performance of fragrance division ​ Successful future collaboration with Colgate-Palmolive is likely to boost the company's fragrance division which reported a slight decline in sales on a pro forma basis from this year's quarter. Fine fragrances suffered in particular, as did fragrance ingredients, but the performance of the company's consumer fragrance division remained strong particularly in emerging markets. On releasing the year's first quarter results the company reiterated its expectation of sales growth in line with the market if the impact of changes to the product portfolio and business divestiture is excluded. Furthermore, the company said it still believes it will reach the margin levels it enjoyed before the Quest acquisition by 2010 and will generate CHF 130m in acquisition related savings in 2008.

Related topics: Business & Financial, Financial focus

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