"Givaudan understands that health and wellness is more than just a trend. Consumers are changing their diets in fundamental ways, and over time, products that contribute to healthier lifestyles will simply become mainstream," said Mike Davis, president of Givaudan Flavours.
According to Euromonitor, the US retail market for functional and fortified packaged foods grew 8 percent between 2002 and 2004, from $4.46 to a projected $5.22 billion. By 2009 it is expected to be worth $6.92 billion.
TasteSolutions for Health & Wellness consists of a range of ingredients, such as maskers, modifiers and enhancers, coupled with expertise to facilitate their use.
The company says the new program has been made possible by more than 15 years of research on taste receptors, and that the discovery of natural ingredients that can modify unpleasant tastes sometimes resulting from formulation of healthy foods and beverages, or those with reduced salt or fat, was an important aspect of this.
Euromonitor research analyst Virginia Lee told NutraIngredients-USA.com in February that manufacturers may set themselves up for a fall by loading products with functional ingredients without being fully aware of other factors besides price that will persuade consumers to buy them.
Taste, she said, is one of the most important factors.
The announcement of Givaudan's new program on Friday came on the day the Swiss firm released its financial results for first quarter 2005, showing a 6.5 percent slide in sales for its favors division.
Givaudan's sales figures were knocked by recent price declines for certain natural ingredients such as citrus and vanilla which, after several years of inflated prices, the company is obliged to pass on the savings to its customers.
The company has also dropped several product lines, such as coffee extracts and some culinary aromas.
But if the health foods boom continues at the current rate, as all indications suggest, perhaps TasteSolutions for Health and Wellness will contribute to a rosier second quarter for the division.