engage your senses

Achieving our 2020 strategy

Our three-pillar strategy – growing with our customers, delivering with excellence, and partnering for shared success – together with ambitious financial targets, guide the business in transforming resources into value for our stakeholders through sustainable and responsible growth.

 

 

In 2018, we remain on track to achieve our financial targets and continue to make strong progress in each of the three pillars.

Read below about our strategic achievements for each pillar

3
3
2
Growing with our customers
Delivering with excellence
Partnering for shared success

Growing with our customers

Growing with our customers

With sales of CHF 5,527 million in 2018, an increase of 5.6% on a like-for-like basis, we are well on track to achieving our ambitious financial target of 4-5% average organic sales growth over the five-year period by 2020.

High growth markets

High growth markets represent the largest growth opportunity and we focus our resources on further building our presence where we see high growth opportunities and can accompany our customers in growing their business.

Key achievements in 2018

  • China fragrance production hub on track for opening in 2020. The new facility in Changzhou, Jiangsu province will substantially increase Givaudan’s manufacturing capacity in China while maintaining best-in-class service levels.
  • New Flavour and Fragrance commercial and development centre opens in Jakarta. The CHF 2.9 million investment creates a closer partnership with customers and demonstrates Givaudan’s continued commitment to Indonesia.

Health and well-being

There are many opportunities for us to provide customers with solutions to help them meet the increased demands of consumers around nutrition and healthier lifestyles.

Key achievements in 2018

  • Centroflora Nutra and Naturex acquisitions completed. With increasing demand for more natural and organic products, these acquisitions enable us to expand our offering to deliver natural products to our customers.
  • Vetivyne™ launched by Active Beauty. This new patent-pending powerful active ingredient has both anti-ageing benefits and long-lasting properties to enhance fragrance wear. Upcycled vetiver roots from fragrance raw materials were used to create a fully natural and sustainable ingredient.
  • Givaudan Active Beauty reverses hair ageing with Darkenyl™. An advanced hair pigmentation recovery ingredient that offers an effective solution to regenerate hair colour and is inspired by the latest stem cell research.
  • A new approach to sugar reduction. Our differentiated approach helps customers create less-sweet products: up to 50% sugar reduction with no added sweeteners while remaining fully satisfying.

Consumer preferred products

We put customers at the heart of what we do, making them feel valued, confident and understood. We are a true partner at each step of the creation and value chain.

Key achievements in 2018

  • Introduced next generation of VAS technology, providing a competitive advantage to understand consumer preferences, speed up the process of flavour and fragrance creation and engage customers by overcoming the sensory language barrier.
  • New interactive tool supports plant protein creation. We launched a new interactive tool Compendium 1.0 which helps to design cost-competitive and consumer preferred flavours for meat analogues.
  • Innovative protein masking technology increases authenticity of flavours in meat analogues and enhances flavour in high protein drinks. Our expertise helps solve challenges customers face in developing nutritional food and drink products.
  • We completed our acquisition of Expressions Parfumées, a pioneer of natural fragrance compounds and they offer their NATCO® range of perfumes designed to adapt to any production labelled ‘organic’.
  • PrimalHyal™ Ultrafiller wins gold at in-cosmetics LATAM. The award was for ‘Best Innovation Ingredients’ and the new product adds to our range of materials to help customers in the dynamic anti-ageing market.
  • Creation of strategic partnership with Synthite. This partnership will enrich our palette with exclusive innovative floral and spicy natural fragrance ingredients for our fragrance business.
  • We entered into exclusive negotiations to acquire Albert Vieille SAS, a French company specialised in natural ingredients used in the fragrance and aromatherapy markets.
  • Launch of 2018 FlavourVision® edition. This novel digital platform allows Givaudan to conduct virtual TrendTreks with customers so they can find out about the latest trends in each market.
  • Commercialisation of Mechadry, an innovative Mechacap format. Revolutionising the laundry detergent market, Mechacap offers superior performance in all stages of the washing process.

Integrated solutions

We look at opportunities to grow our business through ways that go beyond our core flavour and fragrance capabilities, enhancing the Company’s value proposition to customers and creating new avenues for growth.

Key achievements in 2018

  • Expanding beyond flavours. Our Kitchen Ingredients portfolio now includes ingredients and capabilities from our newly acquired companies, providing recognisable, great tasting natural ingredients for our customers.
  • Our delivery systems assure that flavours perform correctly in foods and beverages. Our new, fully natural delivery system provides both great taste and a clean label.
  • Designing the future of cheese and dairy together with Vika. We are now equipped with a consolidated, cost-efficient and versatile toolbox which allows us to generate dairy and cheese blocks using locally sourced starting materials.
  • Integrated solutions succeeds in Mexico. The creation team in Mexico developed an integrated solution for a beverage product with savoury, spice components that helped our customer bring a winner to the market.

1 average over five years

Delivering with excellence

Delivering with excellence

Givaudan Business Solutions

The foundation of our commitment to deliver with excellence is Givaudan Business Solutions (GBS), which is about delivering value to our customers through innovative and efficient solutions and services. The following achievements underline our success in improving internal efficiencies, leveraging best practices from across the organisation and increasing our agility.

Key achievements in 2018

  • GBS implementation progressing according to plan. GBS is well on track with previously announced transition timeline, processes enhancement and deliverables. Cost and benefits outlook fully confirmed.
  • GBS delivered first financial benefits in 2018 of CHF 20 million.
  • GBS regional delivery centres established. The three centres, in Budapest, Buenos Aires and Kuala Lumpur, have teams that embrace the Givaudan DNA and work in partnership with site teams to deliver excellence for our customers.
  • Global functions transitioned to GBS. Continuous Improvement, EHS and Sustainability and Controlling have successfully transitioned, improving internal efficiencies.
  • GBS implementation complete in Europe. In addition to the global functions, GBS Demand to Cash, Source to Pay and HR have been fully implemented and stabilised in Europe.
  • First wave of GBS complete in APAC. Transition of finance and indirect materials and services completed and activities centralised in our newly opened GBS Kuala Lumpur centre.
  • Expanding the scope of GBS. A Centre of Excellence for Engineering within GBS is to be established to leverage best practices from both business divisions and to define a common way forward with respect to capital expenditures, maintenance, utilities and technical services.
  • Bringing innovative solutions to the forefront. Our GBS solutions continue to leverage continuous improvement (CI), big data, mobile technology, and robotics process automation (RPA) to simplify our processes and improve user experience.

Excellence in operations

As the cornerstone of our commitment to our customers, we are committed to excellence at all our production sites and to take action for the environment across our operations and beyond.

Key achievements in 2018

  • LEAN Silver-Gold certification at Japan plant. Operations in Japan continues to deliver excellence at its Fukuroi plant, which has celebrated the achievement of its LEAN Silver-Gold certification.
  • GPS and LEAN Silver certification at Indonesia’s Cimanggis sites. The site benchmarked itself against key global standards and successfully attained both Global Productivity Solutions (GPS) and LEAN Silver certifications, a testament to strong teamwork and a passion for continuous improvement.
  • ISO accreditation. The quality department at Cuernavaca site in Mexico received the ISO 17025 accreditation for its microbiology laboratory, becoming the first site in Latin America to achieve this important goal.
  • 20 sites are working with renewable electricity. We are well on track to achieve our target of 100% of our operations in 2025.
  • HyCool consortium of 16 partners. We have joined this partnership, giving us a unique opportunity to work with leading innovation and technology experts to develop cost-effective solutions using solar heat for industrial purposes. Our site in Sant Celoni, Spain was selected as the HyCool project test site for the chemical industry.

Information Management & Technology (IM&T)

By optimally leveraging digital trends and technology, our IM&T teams develop differentiating services and new ways of working with our customers, partners and employees. This is achieved by delivering state-of-the-art solutions in processes such as flavour and fragrance creation, supply chain and procurement to make them faster and smarter.

Key achievements in 2018

  • Upscaling critical IT infrastructure, including the move to a new data centre, bringing resilience and performance to accompany our business growth.
  • Building an ecosystem of digital partners and experimenting with digital opportunities. We continued our search for innovation partners, including from academia and start-ups, as we look to a digital future.
  • Continuously improving our flavours and fragrances creation and evaluation apps with new, differentiating and mobile features.
  • Enabling GBS transformation through the delivery of process automations in areas such as customer care, advanced planning, EHS, reporting and HR.
  • Completing the migration of Active Beauty to our global SAP platform, leveraging our integrated supply chain and manufacturing processes and tools to this business.

Superior customer experience (SCE)

Becoming a truly customer-centric organisation means driving initiatives hand-in-hand with our customers, creating value and responding to market demands faster and better to help them succeed.

Key achievements in 2018

  • SCE initiatives throughout the regions. While constantly improving end-to-end agility and reliability we have been able to create experiences at all touchpoints of the customer journey. We are in the process of general adoption across the Flavour Division to generate great experiences and build differentiation in a consistent and systematic way.

Partnering for shared success

Partnering for shared success

Our strong partnerships enable value creation for the Company and our key stakeholders. We have forged new partnerships with innovators, employees and suppliers, and with communities in which we operate, positioning ourselves as partner of choice.

Innovators

Driven by a culture of innovation we seek to go beyond our internal capabilities, increasing strategic innovation partnerships with external players such as academia, start-ups, technology providers and research institutions.

Key partnerships in 2018

  • MassChallenge Partnering initiative. We developed an inspiring programme including external speakers on disruptive innovation.
  • Collaboration with Bits x Bites, the first food tech accelerator based in China. Bits x Bites will accompany us on our journey to discover new disruptive technologies in food processing, digitalisation and artificial intelligence.
  • Collaboration agreement with Mixfit. We have signed an agreement with this personalised nutrition start-up to provide taste and flavour solutions for its innovative Intelligent Nutrition Assistant drinks system.
  • Launch of MISTA, a new innovation platform for the food industry. More encompassing than an incubator or accelerator, MISTA is an optimiser, enabling start-ups and established corporations to optimise ideas, products, people and investments.

Suppliers

Generating maximum value with suppliers is achieved through long-term and sustainable partnerships. These collaborations aim to create mutual value in supply continuity, quality, cost, innovation, responsibility and our ability to deliver the best ingredients. As a result, they enable us to differentiate our product offering to customers.

Key achievements in 2018

  • Strengthening sustainable patchouli supply chain. A multi-year project in cooperation with international NGO Swisscontact is improving patchouli oil sourcing and conditions for smallholder producers in our collection network on the Indonesian island of Sulawesi.
  • Safeguarding our supply of high quality citrus raw materials. In our continued efforts to safeguard best quality and stability in supply, we have increased the number of long-term partnerships in our portfolio of lemon and lime oils.
  • Supplier-enabled innovation. Enhanced collaboration between procurement teams and our business divisions has led to solid and open partnerships with suppliers to address our current and future business challenges.
  • Raw material procurement supported through upgraded contract management tool. Providing a central point for information with better usability, this tool improves the links between our procurement category managers of raw materials, the local requesters and GBS operational buyers.
  • Collaboration with packaging suppliers for improved quality and cost reduction. Through this collaboration we have reduced the number of different specifications used for Intermediate Bulk Containers within Europe, resulting in a reduction of 45% in the number of Stock Keeping Units. While opting for lighter packaging, we also improved quality and reduced our own costs as well as those of the supplier.
  • Innovative collaboration drives down costs. After more than 10 years of successful collaboration, Givaudan has confirmed its partner of choice for Global Network Services. The fruitful collaboration brings innovative technologies to drive down network costs while responding to the increasing bandwidth and security needs of our growing organisation.

People

We are committed to fostering a great place to work where our people are motivated to perform at their best, impact their world and contribute to the Company’s success. This success is achieved by developing the skills of our people and nurturing a pipeline of industry experts and future leaders. It is also necessary to promote a diverse workforce that performs in an agile and collaborative way, bringing our values to life and achieving the full potential for Givaudan.

Key achievements in 2018

  • Continued success of global onboarding programme. 567 people attended the ONE Givaudan onboarding events; eight were conducted in the regions and 12 were organised in the GBS hubs.
  • Equipping our people with leadership skills for today and the future. 304 participants followed our Leadership Senses programmes across all regions in 2018, bringing the total number of leaders trained to 1,001 since the launch of the programme. In addition, we further evolved our Leadership Senses programmes by piloting ‘Discover’, a new programme targeting our first-line managers and supervisors.
  • Hiring initiatives to support business growth. To further develop the skills of our recruiting managers, more than 500 managers were trained in ‘Selecting the best’, a one-day training session to familiarise them with the Company’s recruiting process and develop their interview skills to help them make better hiring decisions.
  • Talent acquisition teams meet the challenges of an unprecedented year. Our talent acquisition teams not only managed to hire a large number of people in 2018, but also maintained and even increased some of the key measures of talent acquisition performance, notably candidate satisfaction, hiring on time and manager satisfaction.
  • Continued focus on strengthening positive and authentic conversations. 222 managers have undertaken our ‘Quality Conversations’ training to help them build trusting and productive relationships with their teams, and two new training ‘toolkits’ were introduced, focusing on feedback and developmental discussions.
  • Better Balance roadmap. We have started to implement this programme, which is aimed at aligning all of our senior leadership teams on the case for change.

Communities

We believe that each and every employee has the potential to make a change for the future of our planet and the well-being of the communities in which we work and live. The opportunity to make such contributions is available through our site Green Teams, which organise voluntary sustainability projects, and the Givaudan Foundation, which funds new projects around the world.

Key achievements in 2018

  • Marathon run to raise malnutrition awareness. Employees took part in the Mumbai Marathon to raise funds for a hunger charity and to increase awareness of malnutrition and hunger. Money raised by the employees was matched by Givaudan India.
  • East Hanover Green Team helps Volunteers of America’s Operation Backpack. Much-needed school supplies and extra Givaudan goodies were donated and packed in 40 bookbags for students aged 10-13 years as part of the annual school supply drive.
  • Healthy eye programmes. Employees at our Jigani site in India continued their support for healthy eye programmes, in partnership with the Vittala International Institute of Ophthalmology (VIIO) of Bangalore.
  • China shuttle buses go electric. Givaudan’s diesel shuttle buses are being replaced by electric vehicles in Shanghai, where air quality is a problem. The replacement programme has already resulted in significant cost savings and benefited the environment.
  • Rainwater harvesting in Mexico. With the target of using less water from municipal sources, our manufacturing site at Cuernavaca has installed a 1,000 square metre rooftop system to harvest rainfall for various uses at the site.
  • Replacing metal drums with cardboard fibre containers. Metal drums have been replaced by cardboard fibre containers for the packaging of certain products at our Vernier site in Switzerland. They are more environmentally friendly, reliable, easier to use, and also have cost benefits.
  • Givaudan hosted a three-day fragrance training programme for women at the Zaatari refugee camp in Jordan. As part of a joint project with the London College of Fashion, UNHCR, UN Women, the ICRC and other NGOs, this soap and fragrance workshop was the first in a series of initiatives that has provided women with the technical expertise to begin small-scale manufacturing, a voice in their community and the confidence to train others.