Frutarom Group, the leading manu­facturer of food flavoring, is in the process of purchasing a 75-percent stake in Protein Technologies Ingre­dients Group (PTI Group), the com­pany reported on November 20, 2013 in Moscow. Both companies expect strategic advantages from the deal. The Frutarom Group was founded in 1933 and has its presence today in multiple markets, including phar­maceuticals, food additives, bever­ages, fragrances, and cosmetics. The company’s line of products con­sists of 30,000 items and its clien­tele numbers over 14,000 members in 140 countries of the world. The Frutarom Group employs more than 2,500 personnel in its 27 locations in North America, Europe, Middle East (Israel), and Asia. The stock of Fru­tarom Industries Ltd. is traded in Tel- Aviv and London, where the company surpassed the capitalization level of USD1 billion.

PTI Group specializes in processed meat and convenience foods. The company commenced operations in 1996 and currently is engaged in the production of non-sweet in­gredients based on proteins, as well as flavorings, seasonings, and raw materials for further processing in the food industry. PTI Group utilizes sophisticated technology in order to manufacture and market its products.

“The acquisition of PTI continues the implementation of the rapid growth strategy of the Frutarom Group, and its vision ‘to be the pre­ferred partner for tasty and healthy success’,” said Ori Yehudai, the president of the Frutarom Group.

PTI is one of the leading manufac­turers in the Russian market, and the combination of a local manufac­turer supported by a global company should create significant commercial advantages. According to analysts, the Russian ingredients market is expected to grow by up to 10 per­cent annually in the next few years. This expected growth is higher than the projected growth rates in Central Europe and the U.S. Frutarom, which is active in the Russian market, will become a global company with local production capacities. The company is strengthening its market leader­ship in Eastern European markets and can significantly benefit from the addition of research and devel­opment labs, resource management administrators, an excellent sales team, an efficient manufacturing process, as well as distribution and supply chain systems across the Russian regions.

This partnership is the first deal of its kind on the Russian ingredients market. “We are sure that close co­operation with Frutarom will reinforce our capabilities to create innovative products and provide even better service than before. We are con­fident in the unique synergies and benefits from joint development and see the advantages it should bring to our customers, partners, and em­ployees. Now we have an opportu­nity to set very ambitious goals and together with a worldwide leader and our partner achieve them in the nearest future,” said Mikael Aliev, marketing director at PTI Group.

PTI is now transforming its internal departmental structure in order to smooth the merger with Frutarom and increase business synergy by heightening innovative standards, the level of customer service, and product quality. Frutarom’s priorities now consist of increasing research investments in order to bring to the market innovative and sophisticat­ed products that consumers would crave for.