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<FONT size=-1><A href="http://www.fairchildpub.com/breport.cfm"><STRONG>Subcribe</STRONG></A><STRONG> to WWD Beauty Report International</STRONG></FONT><BR><BR>The Top 10 ranking presents the largest fragrance suppliers worldwide according to their...

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The Top 10 ranking presents the largest fragrance suppliers worldwide according to their 2004 fragrance volume, which comprises sales generated from oils and raw materials destined for fragrance products.*

These companies weigh in at $5.05 billion. Switzerland has the most firms on the list with three, followed by Germany and France with two each. The U.S., U.K. and Japan have one apiece. Switzerland is the leader in volume terms with sales of $2.37 billion, or 47% of the Top 10 total. Sales figures and estimates for 2004 or the closest fiscal year by press time were obtained directly from the companies or calculated with the help of industry sources. Structural changes in a firm since September 2004—resulting from mergers or acquisitions—are reflected in the recent history column.

1. FIRMENICH & CIE
Geneva, Switzerland
$1.204 billion (Est.)
CHF 1.495 billion (Est.)
+5% v. Fiscal ’03-’04

Recently Developed Fragrances

  • Always, Avon
  • Aqua pour Homme, Bulgari
  • Baldessarini del Mar Basic Instinct, Victoria’s Secret
  • Black XS pour Homme, Paco Rabanne
  • City Glam, Emporio Armani
  • Goddess, Baby Phat
  • Happy to Be, Clinique
  • Hypnôse, Lancôme
  • Jette for women, Joop!
  • L’Eau Bleue d’Issey, Issey Miyake
  • Miss Me, Stella Cadente
  • Pure Turquoise, Ralph Lauren
  • True Star Men, Tommy Hilfiger

Recent History

In April 2007, Firmenich is to open a development center in France that will focus primarily on its fine-fragrance activities. For the fiscal year ended June 30, 2004, Firmenich’s global turnover reached CHF 1.976 billion, up 4.1% versus the prior year. The firm said its body-and home-care divisions reported double-digit sales gains, and that its fine-fragrance division registered “moderate growth.” While the weak U.S. dollar negatively affected the company’s consolidated results in Swiss Francs, the euro’s strength helped partially offset the impact. Despite lower unit sales in fine fragrances in its major retail markets of Europe and North America, Firmenich achieved growth last year, since its business in Latin America and the Asia- Pacific region posted high-double digit increases. This February, the company announced its acquisition of Noville Inc., a South Hackensack, New Jersey-based fragrance and flavors supplier specializing in home- and body-care products. In April, Firmenich inaugurated its Princeton, New Jersey-based fragrance facility and also invested further in the automation of production and warehousing processes at its site in Cotia, Brazil. In 2004, the company invested more than 10% of sales into research and development.

2. INTERNATIONAL FLAVORS & FRAGRANCES INC.
New York
$1.123 billion
+4% v. ’03

Recently Developed Fragrances

  • Alien, Thierry Mugler
  • Chloé; Collection 2005
  • Euphoria, Calvin Klein
  • Fever, Céline
  • Flowerbomb, Viktor & Rolf
  • Herrera Aqua, Carolina Herrera
  • Incanto Dream, Salvatore Ferragamo
  • Island, Michael Kors
  • Joop Jump! Lovely Sarah Jessica Parker My Queen, Alexander McQueen
  • Very Irresistible for Men, Givenchy
  • Wonderful, American Beauty

Recent History

IFF posted second-quarter 2005 fragrance sales up 2% in local currency. The gains were led by its fine-fragrance division, which benefited from numerous wins. By region, its European fragrance sales increased 2% versus the second-quarter 2004. In the period in North America, revenues were flat; in the Asia-Pacific region, sales decreased 8%; in Latin America, they increased 13%, and in India, they rose 16%. This year, IFF is stepping up its presence in China, where it began building a specialty ingredients manufacturing plant in Hangzhou. The $29 million unit will serve the firm’s Asian market. Last year, IFF functional fragrances rang up 26% of its overall sales; fine fragrance and toiletries, 17%; ingredients, 12%, and fruit preparations, 3%. The firm’s flavors division generated 42%. For 2005, IFF expects sales in local currency to decrease in the low single digits and sales in reported dollars to decrease in the low single digits versus 2004. On a like-for-like structural basis, local currency sales are expected to rise in the low single digits. This April, IFF appointed Joe Faranda to the newly created role of chief marketing officer. Last year, James Dunsdon become chief operating officer, another new post.

3. GIVAUDAN
Vernier, Switzerland
$865 million
CHF 1.073 billion
-3% v. ’03
Recently Developed Fragrances

  • Be Delicious, Donna Karan
  • Bermuda Tonic, Aramis
  • Bond #9 Chinatown
  • Boss Soul, Hugo Boss
  • Burberry Brit Red
  • Crystal Noir, Versace
  • Elizabeth Arden After Five
  • Fantasy Britney Spears
  • Les Belles de Ricci, Nina Ricci
  • Miami Glow, Jennifer Lopez
  • Pierre de Lune, Giorgio Armani
  • Polo Black, Ralph Lauren
  • Z Zegna, Ermenegildo Zegna

Recent History

In April, Gilles Andrier, former head of Givaudan’s global fine-fragrance division, succeeded Juerg Witmer as company ceo. Givaudan reported first-half 2005 fragrance sales of CHF 555 million, flat versus the prior-year period on a like-for-like basis. The company said its fragrancecompounds sales grew above market rate, but that its fragrance-ingredients sales declined. Its consumer-products revenues continued to outgrow the market substantially, yet the number of its fine-fragrance wins was unable to compensate for the erosion of business due to fragrances’ shorter life cycles. In fine-fragrance, strong sales in Latin America in first-half 2005 were not matched in North America and Europe, where consumer demand was weak. Earnings before interest and taxes dipped 1.7% to CHF 282 million year-on-year. This year, Givaudan developed two fragrance molecules: pomarose and cosmone. In 2004, excluding its discontinued commodity ingredients, revenues from Givaudan’s fragrance-ingredients division rose 4.8% in local currency and 1.4% in Swiss francs over 2003. Last year, fine fragrances represented around 20% of Givaudan’s total scent sales and its fragrance business generated 40% of its total revenues of CHF 2.68 billion. Givaudan targets overall sales growth of 2% to 3% for 2005.

4. SYMRISE
Holzminden, Germany
$608 million (Est.)
?489 million (Est.)
-4% v. ’03
Recently Developed Fragrances

  • Belong, Céline Dion
  • Blu Mediterraneo, Acqua di Parma
  • Flora Bella, Lalique
  • GF Ferré Lei, Gianfranco Ferré
  • Guess
  • Pleasures Intense for men, Estée Lauder
  • Reaction, Kenneth Cole
  • Roberto Cavalli Oro

Recent History

This March, Gerold Linzbach succeeded James Forman as ceo. In November 2004, Symrise executives announced a three-year, ?46 million investment to expand production facilities in Holzminden and the closure of its Hamburg-based fragrance unit. The firm is merging its fine-fragrance and personalcare divisions into a beauty-care branch. In 2004, the company posted total sales of ?1.1381 billion. Flavors generated 48%; fragrances, 33%; cosmetics, 10%, and aroma chemicals, 9%. Symrise made 56% of its 2004 sales in Europe, Africa and the Middle East, 20% in North America, 19% in the Asia-Pacific region and 5% in South America. The firm invests about 7% of its revenues in research and development. It is bolstering investment in its existing sites in China and India.

5. QUEST INTERNATIONAL
Ashford, England
$524 million (Est.)
£286 million (Est.)
+3% v. ’03
Recently Developed Fragrances

  • Angel Garden of Stars, Thierry Mugler
  • Cerruti 1881 Collection
  • Hugo Energise, Hugo Boss
  • Jean Paul Gaultier to the Power of Two
  • Liquid Magnetism, Jack Black
  • Miss Dior Chèrie, Christian Dior
  • Silver Black/Onyx, Parfums Azzaro
  • Silver Shadow, Davidoff
  • Tumulte, Christian Lacroix

Recent History

Quest posted total first-half 2005 sales of £279 million, down 11% versus the same period in 2004. On a like-for-like basis, its revenues grew 5%. For the second quarter, the company’s fragrance division’s sales rose 9%. During 2004, fragrance revenues increased 8% versus 2003 to represent 49% of Quest’s total sales during 2004. In 2003, they comprised 40%. Revenues for last year were spurred by double-digit growth in the fourth quarter, led by business in North America, Asia and Latin America. This August, its North American subsidiary appointed two vice presidents, Filippo Evangelista and Arnaud Roche, to head up Quest U.S. Last November, the firm opened a fine-fragrance and creative center in Paris.

6. TAKASAGO INTERNATIONAL CORP.
Tokyo
$261 million
¥28.2 billion
+8% v. Fiscal ’03-’04
Recently Developed Fragrances

  • Chopard Pink Wish
  • Curve Wave for Men, Liz Claiborne
  • Emotion, Pierre Cardin
  • Love By Ulric de Varens
  • Maria Sharapova, Parlux
  • Samourai Light and Silver, Alain Delon
  • Shania by Stetson

Recent History

Fragrance sales accounted for approximately 27% of Takasago’s overall turnover of ¥101.2 billion in fiscal 2004. The company’s total sales rose 5% over 2003. Last year, Takasago reported sustained growth, particularly in Southeast Asia and in China. Takasago now has two subsidiaries and three joint-venture companies in China, including Takasago International (Shanghai) Co. Ltd., which aims to generate sales of $5 million in 2005 and $10 million yearly by 2010. Takasago executives said the firm’s fine-fragrance wins last year were limited, due to difficult market conditions. The company has expanded its creative teams in Europe and America. It also launched an advertising campaign in the professional press that is designed to show its approach to fine fragrance as young, lively yet sophisticated, company executives said.

7. MANE
Le Bar-sur-Loup, France
$129 million
?104 million
+7% v. ’03
Recently Developed Fragrances

  • Antonio Banderas Spirit for her
  • Pivoine Magnifica, Guerlain
  • Summer for her, Mexx
  • Thé Vert/Thé Vert Menthe, L’Occitane

Recent History

In 2004, Mane generated total sales of ?257 million, up 5% versus the prior year. Its fragrance division grew revenues 8% in the U.S., 7% in Europe, the Middle East and Africa together, and 6% in Asia. Last year, Mane focused on emerging markets. It established a sales office in Dubai to further its expansion in the Middle East. This April, the company doubled its Indonesian research-and-development facilities for flavors and fragrances, which serve Southeast Asia. Mane is also expanding its center in Thailand and opening a unit in China within two years. The company said its fine-fragrance growth last year was largely driven by business consolidation. For 2005, Mane forecasts 3% gains in fragrance and about 3% for the total company. Its consumer-products division has been impacted by the pressures facing its customers to compete with hard discounters.

8. ROBERTET
Grasse, France
$126 million
?101 million
-3% v. ’03
Recently Developed Fragrances

  • Addict 2, Christian Dior
  • Baby Guerlain
  • Eau de la Récolte Bleue, L’Occitane
  • Je T’M:-), Lulu Castagnette
  • L’Eau de Rubylips, Salvatore Dali
  • Magnetism for men, Escada
  • Puma Red & White Man
  • Secret Wish, Anna Sui
  • Starwalker, Montblanc

Recent History

Robertet attributed its slight sales decline in 2004 to an unfavorable euro-dollar exchange, a difficult fragrance market and a tough year-on comparison. The firm’s fine-fragrance division generated 33% of its overall scent sales last year, which rang up 34% of the company’s total 2004 revenues of ?203.9 million. France generated 16% of Robertet’s business last year, while international sales made up 84%. Its business in the U.S. rose 28%. Robertet said its “slim” sales decline in Europe was partly due to some of its clients’ focus on reducing costs in order to achieve their financial targets. The company aims to more than double its business in Asia to 15% in 2005. Also last year, Robertet continued developing scents for its aroma-cosmetics program. The company is researching possible developments in the slimming category. For 2005, Robertet forecasts flat sales versus last year.

9. DROM FRAGRANCES
Baierbrunn, Germany
$114 million
?92 million
+4% v. ’03
Recently Developed Fragrances

  • 360 Red for men, Perry Ellis
  • Cumbia for man, Benetton
  • Et+Si Affinités for woman, Chantal Thomass
  • L’Or Rouge, Torrente
  • Olivier Strelli for woman
  • Rock ‘n’ Roll for men, Samba
  • Rockin Rio, Escada
  • Sheer Summer, Ghost

Recent History

Fragrance sales growth at Drom last year was driven by double-digit increases in Asia, led by China. The firm’s Guangzhou city production center, opened in 2004, helped bump sales up by 15% in that region. The 53,820-sq.-ft. facility, with an annual capacity of 5,000 tons, serves the Asian market and will provide fragrances to Russia and the Middle East. To strengthen its business across Asia, the company established Drom Asia Pacific Ltd., an affiliate in Hong Kong. In 2004, Drom generated 30% of its total turnover in Asia, the Pacific Rim and the Middle East combined, compared to 26% in 2003. The company said its sales in Western Europe were stagnant last year, due to continued economic doldrums there, although its revenues improved in the first half of this year. Drom’s fine-fragrance division rang up 33% of total company sales in 2004, up one percentage point versus 2003.

10. FRAGRANCE RESOURCES
La Tour-de-Peilz, Switzerland
$93 million (Est.)
?75 million (Est.)
Flat v. ’03
Recently Developed Fragrances

  • Canali Homme, Eurocosmesi
  • Ferré, Gianfranco Ferré
  • Fleurs d’Ombre, Jean-Charles Brosseau
  • Lulu Guinness
  • Mary-Kate and Ashley Coast to Coast
  • N.Y.C./Coast to Coast L.A.
  • Paris Hilton
  • Tom Tailor Man

Recent History

Last year, Fragrance Resources generated the majority of its business (56%) in Europe; 36.5% in the U.S.; 6.25% in the Middle East and Africa, and 6.25% in the Asia-Pacific region, which the firm entered two years ago. The company made 37% of its sales in cosmetics and toiletries, 34% in fine fragrance and 29% in household scents. Fragrance Resources has won 17 new scent projects since September 2004. The privately owned firm changed its company structure in France, from an SA (société anonyme) to an SAS (société par actions simplifié). Perfumer Pierre Bourdon became president of the French company’s executive committee, and Friedrich Gerberding, son of Fragrance Resources’ founder, was appointed president of the French company’s administrative board. Fragrance Resources also opened a second office in Paris.

This article originally appeared in WWD Beauty Report International. Download a PDF of the full issue.

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