Robertet (RBT): 170 years of sustainable growth
Robertet is a French family business with a rich history. Founded in 1850, the company is still based in Grasse, the cradle of perfumery worldwide, where everything started. The company is led by the fourth generation of the Maubert family. From 1850 to 1984, the company was a private business that developed innovative ways to create flavors and fragrances from natural ingredients. The listing as a public company in Paris marks the beginning of the international expansion and growth story. The company enters the USA and other key markets through organic investments and strategic acquisitions.
Today, Robertet operates globally, with 39% of its over 700 million euros in sales coming from Europe, followed by 35% in North America. 36% of sales are in fragrances, 35% in flavors, and 26% in ingredients.
Robertet has an interesting ownership structure (slide 127): The Maubert family owns around 37% of the capital and 62% of the votes. Two competitors (Firmenich holds 21.8% and Givaudan 4.7% of the capital) own large stakes in the business. The F&F industry is constantly being consolidated, but due to the majority family ownership, Robertet has no pressure to sell. Even though Robertet is 170 years old, the company is far from the largest player in their industry. Let’s dive into the industry and competitive advantages.
The fragrance and flavors industry
The fragrance and flavor industry was valued at $30 billion in 2022 and is expected to grow at 4.9% through 2032 to a size of $48.4 billion. The market is oligopolistic in nature, with a lot of the market concentrated around a few key players:
International Flavors and Fragrances (IFF) ($11.6 billion in sales), Givaudan ($7.8 billion), Firmenich (around $5 billion) and Mane (around $2 billion) represent the majority of the industry. At just $780 million, Robertet is a smaller player in the industry, representing just 2.6%. Flavors, in particular, are increasingly used in food to substitute salt, sugar, and fats, which is one of the examples of growth trends in the industry.
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