In 2024, we worked closely with customers to positively impact the daily lives of millions of consumers worldwide by creating foods and beverages that are healthier, more delicious, and better for People and Planet.
Strategic priorities
In June 2024, during our Capital Markets Day, we presented our ‘TTH Strategic Priorities ‘28’ outlining our focus on high-growth, high-margin product groups and how we aim to outpace the market by growing our divisions and leveraging merger synergies. The divestment of our yeast extracts business, with annual sales of about €120 million, to Lesaffre was a direct result of our strategic review. The divestment was completed on 1 October 2024.
Investment in facilities
To maintain market leadership and grow with our customers, we continued to invest in our regional presence. Key 2024 updates include:
- Constructing new facilities in Karawang (Indonesia) to increase capacity and invest in the latest technologies to meet increasing demand for flavors. The facility is expected to be operational in 2026
- Expanding our VKL Seasoning plant In Kerala (India) to contribute to expected growth in the Indian food industry, by developing sustainable seasonal and flavor solutions. Completion is due in 2025
- Opening a new research center in San Diego (USA) equipped with receptor technologies to unravel taste perception, sensory characteristics and consumer preference
- Making great progress with the construction of our state-of-the-art TTH headquarters and application laboratories at the Biotech Campus Delft (Netherlands) which is expected to be operational by mid-2025
Merger synergies
We made significant progress to achieve €300 million in synergy sales through cross-selling, concept selling and joint capability sharing, per out mid-term strategic ambitions. Throughout the year, teams created new joint concepts and successfully launched several new products across multiple platforms and saw a lively collaboration with customers:
- In plant-based solutions for dairy applications, we developed a market-ready solution for oat and soy drinks that combines a gellan gum texturing agent to improve the mouthfeel and a new solution to achieve an authentic dairy taste
- In Savory, the business created a plant-based tuna sandwich filling. While many plant-based alternatives exist, there are few plant-based fish options at a time when overfishing is a consumer concern. We brought together our deep expertise in proteins, texture, taste and nutritional value: Vertis™ proteins to ensure the bite and texture of real fish. Color solutions for a natural appearance. Culinary top notes and yeast extracts to provide authentic tuna flavor. With omega-3 fatty acids, normally found in oily fish, using our algae-derived life’s®OMEGA
- In Beverages, marketing teams, flavorists and application specialists collaborated, leading to more wins at a leading Asian beverages company. From vitamin juice drinks to a new premium range with rich flavors and health benefits, the customer adopted new citrus flavors and mouthfeel enhancers, including a new orange flavor with a fresh, peely, juicy, sweet, green profile
- In Nigeria, the teams developed a new formula for the customer’s flagship energy drink combining flavors, colors, vitamin premixes, modulators, and sweeteners
- In Europe, teams helped a global coffee leader with solutions with Flexarome® Almond Vanilla flavor technology and NutriGEM® V (B6) vitamins to achieve a superior and consistent product taste
- In Dairy, a renowned US dairy company launched new fruit-flavored low-sugar yogurts in different formats that combine TasteGEM® and TastePRINT® flavor solutions together with stevia sweeteners and enzymes. Teams also developed the final formula featuring TasteGEM® and Gellaneer® for avocado and oat flavored yogurts for a leading Chinese dairy producer
Fine-tuning our organization
While we will retain our Taste and Ingredient Solutions divisions, we bring one voice to our customer through our regions led by newly appointed TTH regional heads. These heads are responsible for executing our Taste and Ingredient Solution strategy and will not only mean customers can utilize our combined capabilities, but also ensure we capture new synergies together. We will accelerate and prioritize incoming briefs and commercial opportunities – looking through the lens of our joint portfolio and application capabilities.
Having continued to invest in people in 2024, we are pleased that 80% of TTH employees reported high engagement in our Employee Engagement Survey, even during times of change. We are also happy that a majority of customers experienced a positive impact of the merger. Through the Net Promotor Score (NPS) survey, customers expressed a high interest in our integrated solutions, such as flavor and premix blends, as well as sugar reduction and plant-based solutions. Most customers indicated that doing business with dsm-firmenich was flawless after the merger.
Production
We saw increased demand thanks to our outstanding portfolio of food and beverage solutions, strong customer interest in synergies and new concepts, and positive developments in the market. We continuously improved our plants and carried out targeted investments. This resulted in production records in most plants around the world, while our safety and quality performance both improved.
Investing in the future of flavor and taste
In January 2024, we welcomed the inaugural class to our revamped Flavorist school. Drawing on more than 100 years of history, school is dedicated to improving both the art and the science of flavor development. dsm-firmenich’s commitment to sustainability helps to ensure that graduates will not only innovate in taste but also promote eco-friendly solutions.
