This week, Givaudan announced a major investment to expand fragrance manufacturing capacity in Mexico, adding to its production footprint in Latin America.
The investment follows Unilever’s confirmation that it has agreed to sell its Home Care business in Colombia and Ecuador, marking a portfolio change in a different part of the Latin American market.
Givaudan commits $110 million to new facility
The company characterized the move as a “significant strategic investment,“ with plans to build a new fragrances manufacturing facility in Pedro Escobedo with the goal of ”further strengthening its industrial footprint in Latin America and supporting its growth ambitions," as detailed in its press announcement.
The investment is part of Guivadan’s 2030 growth strategy to expand operations globally and shift production closer to its end markets, with the Pedro Escobedo facility supporting customers across Mexico, Central America, the Caribbean and the Andean region.
“Latin America continues to show strong market momentum,” said Maurizio Volpi, President of Givaudan Fragrance & Beauty in a press statement. “This new investment is a strong statement of our commitment to customers in the whole Latin America region...and will enable us to meet this increasing demand by offering faster, more flexible service to customers, thereby supporting our local and regional (L&R) ambitions.”
The new compounding facility has been designed to scale as customer demand grows, with capacity expected to reach between 20,000 and 25,000 tons, and Givaudan confirmed the site launch is scheduled for 2029.
“The Pedro Escobedo facility has been designed to combine automation, scalability, and efficiency,” added Andy Stedman, Global Head of Operations for Givaudan Fragrance & Beauty in the same statement, and will “allow us to optimize production flows while reducing our environmental footprint.”
The investment builds on Givaudan’s 2024 announcement to expand Fragrance & Beauty encapsulation technology production at the same location. At that time, Maurizio Volpi, Givaudan’s President of Fragrance & Beauty, characterized the expansion as a “pivotal step in our fragrance and beauty strategy, [which] successfully doubled our production capacity...[and] positions us as a leader in this market.”
Unilever sells Home Care business in Colombia and Ecuador
While Givaudan is expanding its manufacturing footprint, Unilever announced its agreement to sell its Home Care business in Colombia and Ecuador to Alicorp on January 28.
The sale includes a range of Equidorian and Colombian brands, including Fab, 3D, Aromatel and Deja, which “have a long-standing heritage and play a meaningful role in the daily lives of consumers” across the region, said Reginaldo Ecclissato, President of 1 Unilever Markets at Unilever.
Characterizing the sale as a “thoughtful decision,” Ecclissato stated that the transaction “aligns with our ambition to sharpen our portfolio and focus on the categories where we can lead, innovate and grow sustainably.”
Unilever said it expects the brands and operations to continue under Alicorp’s ownership.
“Alicorp is a respected regional player with strong capabilities in Home Care,” Ecclissato added, “and we are confident that under their stewardship these brands and operations will continue to thrive.”
