Naturex: A Natural Ingredients
Success Story

When Jacques Dikansky founded France-based Naturex in 1992 he envisioned a world in which natural ingredients would someday be in high demand. Fifteen years later, it seems his wish has come true.

Naturex started out producing plant extracts with flavoring, coloring or preservative properties for the food industry. A few years after founding Naturex, however, Mr. Dikansky decided the company was ready to expand its act-ivities to new markets. The expertise acquired in the production of natural ingredients for the food industry, coupled with a series of tactical company acquisitions, helped propel Naturex into the nutraceuticals market.

To further this effort, in 1997 the company opened a subsidiary in Mamaroneck, NY. This location enabled it to handle the direct marketing of products in the U.S. and Canada, as well as extend its customer service reach.

In 2002, the company started out on the acquisition trail by acquiring Brucia Plant Extracts, allowing it to gain new assets and better position itself in the nutraceuticals market. It also provided Naturex with a strategic production facility and warehouse on the West Coast.

In 2004, the company bolstered its portfolio further by acquiring the rosemary business activity of Hauser. Through this purchase, Naturex gained trademarked and patented rosemary extracts, allowing it to become a world leader in natural preservatives designed for the food industry.

From a growth perspective, the last few years have been particularly important for Naturex, especially since it acquired Pure World in 2005. “Following our acquisition of U.S.-based Pure World, we virtually doubled in size and today rank amongst the world’s foremost leaders on the plant extract and natural ingredients market,” said Mr. Dikanksy.

Pure World’s products not only target two of Naturex’s main market segments, namely the food processing and nutrace-utical industries, but also the cosmetics sector. Moreover, Naturex and Pure World boast strong synergies as much in terms of their customers as their products.

Across the Atlantic, the company opened a U.K. subsidiary, Naturex Ltd., based in Oxford. According to the company, this new location will enable it to strengthen relationships with current clients and significantly expand its commercial position in Europe.

Most recently, Naturex acquired two Italian companies, Hammer Pharma and HP Botanicals. Hammer Pharma brings with it the additional benefit of being approved by the Italian Ministry of Health for the manufacture of pharmaceutical products, thereby being able to offer a wide range of botanicals with complete drug master files, allowing for their use in the production of pharmaceutical products. HP Botanicals, on the other hand, has a wealth of expertise in the formulation and sales of plant extracts for the nutraceuticals industry. Naturex is hoping to leverage this expertise as it pertains to the Italian market.

“Naturex is a botanical development leader,” said Antoine Dauby, marketing manager. “Through extensive and continuous R&D efforts, integrated with state-of-the-art technology, experience, and enhanced manufacturing capabilities, Naturex manufactures and sells more than 300 botanical extracts.”

Mr. Dauby also points out several instances where Naturex became a “first-mover” in the market. “Naturex took the lead with maca (MacaPure and MacaTonic), as well as with rosemary extracts for food preservation applications,” he said, adding, “And we are currently bringing new botanical extracts to the market from Morocco.”

For the future, Mr. Dauby said, “Everyone in the supply chain, as well as consumers, continue to call for safe and authentic products. Meanwhile, legislators worldwide are tightening regulations. The distributors will have to communicate more about the targeted benefits, the active compound content and the proven efficacy. This should be accompanied by an increase in the investment in science in order to provide the required proofs of documentation, from certificates of authenticity (C of As) to clinical studies.”

Companies that continue to formulate strategies to promote sales rather than advance the science and understanding of medicinal plants and their appropriate applications, Mr. Dauby warned, will be seriously compromised. “As the market is still in a consolidation phase, investments and size of manufacturing facilities will also play more prominent roles in this challenging environment,” he added. “The companies that do not adapt to these changes will disappear.”—R.W.

Naturex
375 Huyler Street
South Hackensack, NJ 07606
Telephone: 201-440-5000
Fax: 201-342-8000
E-mail: naturex@naturex.us
Website: www.naturex.com