Sozio acquires perfume composition specialist Synarome
15 Jul 2021 --- French fragrance composition specialist invests in organic synthesis and distillation specialist, Synarome. BPC Insights, caught up with Frederic Braud, general manager of Sozio to find out more about its latest deal in a busy year of purchases and developments.
Family-owned European company, Sozio, focuses on the development and production of fragrance compositions. With over 260 years in the marketplace, the long-standing French company’s latest acquisition of fine perfumery, functional perfumery and food aromatics producer, Synarome, marks its most recent strategic growth decision.
With its latest purchasing deal, made in June 2021, Sozio hopes to strengthen its position in the areas of organic synthesis, perfumery specialties and distillation in the fragrance space.
Following its partnership agreement, the two companies will vertically integrate. The move will see the duo combine production and innovation including ingredients, fragrance creation and manufacturing as well as share structural behind-the-scenes components such as IT resources and administration.
With an established history in the specialist field of organic synthesis and distillation that spans 90 years, Sozio chose to invest in Synarome to further its progress and growth in the fragrance market. The brand, Synarome, is anticipated to reach sales figures of €6m in 2021.
Expanding aromachemicals and specialties
Click to EnlargeSozio’s acquisition will add more than 200 aromachemicals to its portfolio.Detailing what stood out about the Synarome brand, Sozio’s General Manager, Frederic Braud, highlights: “Iconic ingredients such as Ambrarome and Animalis have made the reputation of Synarome for more than 90 years.” Synarome produces more than 200 aromachemicals and specialties for the global flavor and fragrance industry.
Based on its history to date and future strategic direction, Sozio’s ambition is to return to its historical roots with the creation and manufacture of natural and specialty perfumery ingredients, which the brand states have been at the heart of the company for more than 200 years.
Explaining why Sozio choose to acquire the aromachemicals and specialties producer now amid the uncertain and disrupted global marketplace due to the COVID-19 pandemic, Braud states: “Synarome is on the pathway to recapture their historical place in the industry, this was the perfect timing to process to this acquisition.”
The latest acquisition aligns and complements Sozio’s existing portfolio as Synarome’s ingredients are already largely used in its current fragrance portfolio. Following the acquisition, Sozio notes it will increase its use of Synarome ingredients in the future.
Following the formal announcement of the agreement between the two brands in June 2021, looking ahead, Sozio’s immediate strategy will be to focus on key Synarome ingredients. In addition, Braud also notes the company will: “Launch a vast investment plan in their research and development and production facility based in Chartres, France.”
Due to the company’s growth, Achille Riviello, General Manager of Synarome comments: “We felt we needed the support of a larger enterprise.” By investing in another company, the perfumery brand is able to increase its investments in its research and development center and production facility with a company that shares the same vision on the future of perfumery.
A big year for Sozio
Click to EnlargeThe company’s purchase of Synarome is the latest acquisition and strategic decision in a year that has seen Sozio invest in the UK with the purchase of Phoenix Fragrances; the build of its new factory in Jakarta, Indonesia, during the first quarter of 2021; the development of a laboratory in Dubai planned for summer 2021; as well as the launch of a new factory in China in 2022.
● Purchasing perfumery companies
In March 2021, Sozio announced its purchase of UK creative perfumery company, Phoenix Fragrances. The company made the acquisition in a bid to help strengthen the company’s natural fragrance expertise and reinforce its presence in the UK marketplace. With a clear view to grow its position in the UK market and appeal to fragrance consumers, the brand entered into the agreement with a plan to increase activities in the natural perfumery market and reduce costs through synergies in purchasing and IT activities. To support its growth and meet its aims, Sozio will also increase investment in Phoenix’s research and development laboratories and production site.
Another acquisition took place in February 2021, when Sozio bought fragrance producer, Scentessence, which is also based in its domestic marketplace. With expertise in natural fragrances, through the acquisition, the brand strives to enhance its natural ingredient expertise.
● Expanding with natural departments/divisions
Building on its purchases, Sozio is already developing its perfumery capabilities. In March 2021, the company also created Botanicals, its own division dedicated to natural ingredients. To overcome the current challenging climate, the brand launched its latest division to ensure the sourcing of its natural raw materials. Through its latest division, Sozio aims to grow its fragrance formulation expertise, particularly in the natural field as well as offer a selection of natural extracts like essential oils.
To appeal to growing sustainability needs in BPC, in April 2021, Sozio also rolled out its Biodegradable Fragrances Tool to help create more sustainable products. Discovering that standard biodegradability tests have traditionally been created for single substances, the brand recognizes: “Biodegradability testing of mixtures is very difficult from a technical perspective.” Sozio notes that different water solubilities and vapor pressures can provide false results, thus proving detrimental in securing a formulation’s biodegradability status.
Sozio adopted the method, advised by the International Fragrance Association’s (IFRA) guidance to develop its biodegradability tool.
By Natasha Spencer-Jolliffe, BPC Insights Senior Reporter
