Synergy unites operations across UK and Ireland

By Jess Halliday

- Last updated on GMT

Related tags United kingdom

Synergy has adopted a new structure for its businesses in the UK
and Ireland, with closer coordination of operations and development
activities and the ultimate aim of providing a 'one touch' service
to clients.

Synergy is the flavour and value-added ingredients division of dairy firm Carbery, and was established in 2005 to bring together two acquisitions in the flavours and seasonings area, plus its own brewer's and lactic yeast-based flavour production.

Consequently, in the UK and Ireland there are three sites - in High Wycombe (top note flavours), in Corby (seasonings, sauces, bouillons and curry paste), and Ballineen, Ireland (yeast extracts).

But recently appointed commercial director for Synergy UK and Ireland (previously commercial director for flavours) Steve Morgan told that the three business each had their own technical and commercial teams "all filtering into the value-added business model".

Now, however, the company is aiming towards a more integrated approach, so that customers can request service at a single point of contact.

One of its key aims is to be "the best at service in the local market" , and having a management body sitting across all three businesses should strengthen its capabilities and deliver a faster response to customers.

Morgan said that the first two steps towards integration have already been taken, with its commercial and research & development teams now working across the whole portfolio.

The business is "evolving" , however, and other steps include streamlining operations such as purchasing.

Such streamlining is not driven by cost savings - but rather Morgan described the restructuring as a "high investment model" .

He was not able to give a figure for the investment, since it has been absorbed into the operational costs.

In the grand scheme he does not expect this streamlining to result in job losses, since the company has seen a huge increase in demand for natural flavours and ingredients - bringing an increase in work load.

Morgan said that around 50 per cent of the top note flavour sales are natural, and the ration of new briefs the company receives is 5:1 natural:nature identical.

He said that the trends towards premiumisation, natural and healthful indulgence are all wrapped up together.

Rightly or wrongly, in the consumer's mind , "premium goes with natural, and natural means better".

"This is pretty much unstoppable," Morgan said.

As for the end goals of the restructuring and expectations from the burgeoning naturals market, Morgan declined to give any financial projections.

As a small to medium sized company, Synergy now has sales of around £13 to £14m in the UK and Ireland.

While the increase, over time, is expected to be "significant" and it is certainly eyeing a bigger market share, in essence the aim is "to be bigger by being better".

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