Paris, July 16 - France's Robertet , which produces flavours and additives for the cosmetics and food industries, is betting on consumers' hunger for organic and natural products to make up for declining perfume sales.
The group, which also transforms plants and natural ingredients used for toiletries in its factory in Grasse, in the south of France, sees traceability and fair trade as a boon, and will seek to invest more in material-producing countries.
"Organic products are more than a growth engine, they will soon be the rule imposed to our clients by consumers. What is a niche now, will become normal very quickly," Chief Executive Philippe Maubert told Reuters in an interview on Thursday.
Robertet, which competes with Switzerland's Givaudan , the industry leader, American group IFF and Germany's Symrise , acquired French rival Charabot in 2007 as well as organic oils firm Plantes Aromatiques du Diois.
It now wants to controle the upstream production of raw materials like vanilla, precious woods or flowers by investing in countries like Madagascar or the Comoros, to supply clients such as Procter & Gamble with traceable products.
"There, we want to treat specific products like Ylang Ylang flowers from A to Z. We are also opening a unit in the Loyalty Islands in the Pacific for the production of sandalwood," Maubert said.
SECOND HALF SALES TO PICK UP
Robertet, which was founded in 1850 and has a market value of around 164 million euros, also supplies famous Paris perfume makers like Chanel, as well as multinational groups like LVMH , Hermes or Coty.
The group, which reported first-quarter sales down 2.8 percent to 74.6 million euros, saw sales fall 5.3 percent in its fragrance division, which accounts for about 30 percent of its sales, and some 10 percent in its raw material division.
But sales grew some 5.4 percent in its flavours division, which accounts for about 35 percent of its sales, and Maubert expects it to continue, as demand for new flavours in the American food industry is proving resilient.
"Europe suffered more, mainly because of high-range products. But since June, we can see a recovery in trade, maybe due to destocking but also to demand picking up in Europe and the United-States for everyday products," Maubert said.
Large agro-business groups, especially in the beverage industry, continue to launch ever more new products, and this is helping Robertet making up for the decline in perfume sales, Maubert said.
"I really believe that the second half of this year will be better than the first half of this year (...) and also the same period last year," he added.
Last year, Robertet made about 38 percent of its sales in North America, some 41 percent in Europe and 13 percent in Asia, but revenus from Asia should rise as it will open a new plant in China at the end of the year, to follow its main customers.
Shares in Robertet closed down 1.25 percent on Thursday, to 78 euros. The stock has risen about 9.71 percent so far this year, after losing more than 33 percent in 2008.
The Maubert family owns just over 50 percent of Robertet and American investment fund Arnhold Bleichroeder has around 19 percent.