Specialist
Former general manager at International Flavors & Fragrances Inc
Agenda
- IFF's (NYSE: IFF) outlook based on recent M&A
- Trends and emerging technology in the flavour sector
- Alternative meat growth and opportunities
- Competitive landscape, differentiation and relationships with major CPGs
Questions
1.
How has IFF’s [International Flavors and Fragrances’] operating environment changed since the DuPont merger?
2.
Could you outline the process of getting customers on board and developing flavours as coronavirus restrictions are lifted and travel is once again permitted? Do you expect a significant increase in some operating costs?
3.
What do think are the difficulties for IFF in integrating DuPont, which is so dependent on its personnel?
4.
What do you think would define a successful vs unsuccessful merger?
5.
How would you describe the competitive landscape, with the trend of flavours and fragrances accelerating towards more sustainable and natural ingredients? How might competition evolve?
6.
Plant-based meats have experienced significant growth over the last couple of years, but are still very small compared to the entire meat industry, so what is the catalyst here for IFF? Do you expect it to make the segment a greater priority in the near term?
7.
What is your opinion on the opportunity IFF might be able to pursue in plant-based meat in the EU, given the various GMO regulations there?
8.
How does the Asian market differ from the US and EU? What trends, flavours and ingredients have started to take hold there?
9.
IFF recently announced a new platform called Science of Wellness. It intends this as an avenue to capture consumer demand, which is expected to grow by 5-10% by 2025. What are your thoughts on this venture? Do you think this is the best approach to capturing market share?
10.
What do you think will ultimately drive the 5-10% growth McKinsey & Co predicts? What do you think is the likelihood of IFF hitting the top end of this figure?
11.
Health and biosciences lost margin and sales in Q1 2021 and seems to have lagged IFF’s other segments. Is this due to the pandemic? What headwinds might persist in H2 2021?
12.
What are your expectations for IFF’s Q2 2021 results, based on Q1 2021 performance? Do you think the market situation has improved?
13.
Scent sales have grown by about 5% YoY. What product mix and initiatives are contributing to that growth?
14.
IFF has issued a higher guidance for FY21. It expects a 22% adjusted EBITDA and about USD 11.25bn in sales. Where do you think this optimism stems from, especially for the margins with material prices as high as they are?
15.
IFF announced an agreement with DSM to offer advanced yeast for first-generation ethanol. What is the opportunity to improve yield with this product, considering the historically high corn and soy prices?
16.
What do you make of IFF’s relationship with its large existing customers and the emergence of new brands in niche or localised markets? Do you think this is a challenging dynamic to manage? Will IFF be able to retain these smaller customers long term?
17.
What do you think are the primary threats to IFF over the near and medium term, as the transition to more sustainable natural ingredients begins to take effect?
18.
Which flavours, ingredients or textures do you think will be most challenging to substitute with natural equivalents?
19.
Where do you think natural substitution will have the biggest impact? Will it be with foodservice or food producers? What are the challenges in either sector?
20.
IFF recently announced two divestments. The first is the microbial control business, which it valued at USD 1bn-1.5bn. The second is its food preparation assets, for around USD 200m-300m. What do you think is the strategy here? Where should the company direct resources?
21.
What do you think is the likelihood of IFF meeting its guidance? What are the risks of it falling short? What are your long-term growth expectations for IFF compared to the rest of the industry?
22.
Is there anything else you want to highlight?
