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Bush Boake Allen Inc. manufactures flavor and fragrance chemicals and aroma chemicals
for the food, beverage, pharmaceutical, and household products
industries. The flavorings, including essential oils, seasonings, and
spice extracts, impart a desired taste and smell to a broad range of
consumer products, such as snack foods, confections, soft drinks, and
alcoholic beverages. The fragrance products appear in soaps,
detergents, air fresheners, cleaners, cosmetics, toiletries, and
related products. BBA's aroma chemicals are primarily used as raw
materials in fragrance compounds. The company, in 1998, had operations
in 39 countries. It was 68 percent owned by International Paper Company
in 1999.
Albright & Wilson Ltd., a British aroma chemicals manufacturer
, founded Bush Boake Allen, Ltd. in 1966 by merging W.J. Bush Ltd., A.
Boake Roberts Ltd., and Stafford Allen Ltd. These three companies dated
back to the 19th century, with the oldest founded in 1833. Bush
specialized in liquid flavors, Boake in aroma chemicals and fragrances,
and Allen in spices and seasonings. Based in London, BBA had sales of
about $90 million in 1978, the year it purchased Monsanto
Flavor/Essence, Inc. of Montvale, New Jersey, and Patchogue, New York.
Parent Monsanto Company had entered the flavors and fragrances business
in 1968, when it purchased George Lueders & Co.
Bush Boake Allen was already a large-scale producer of fragrance
synthetics from pinene, a compound derived from sulfate turpentine. The
acquisition of Monsanto Flavor/Essence, which had annual sales of about
$12 million, gave it access to more synthetic aromatic chemicals
technology and rights to "Vellex" malodor counteractants, a product
line seen as having great growth potential. BBA had sales of $125
million in 1981.
The following year, Tenneco Inc., which had acquired Albright &
Wilson in 1978, sold BBA to Union Camp Corporation, a diversified U.S.
manufacturer which made its purchase a wholly owned subsidiary.
Bush Boake Allen had, at this time, 13 manufacturing or compounding
facilities on five continents. Its operations were a good fit for Union
Camp's own aroma chemicals business, which was based on distilling
crude sulfate turpentine into intermediate terpene fractions and aroma chemical precursors. The addition of BBA gave Union Camp greater manufacturing capability to produce a broad range of these chemicals.
With regard to food flavors, local tastes and customs in individual
countries as well as a host of different government regulations had to
be taken into account. Fragrance markets tended to be more uniform, but
considerable creativity was needed to gain acceptance for a new
fragrance. Both flavors and fragrances required extensive technical,
analytical, and service backup. Bush Boake Allen had testing facilities
that included a bakery, small-scale ice cream and soft drink plants, a
meat processing operation, and an experimental kitchen, in order to
test, as close to true production conditions as possible, the behavior
of a particular flavor in the medium for which it was prepared.
A large part of Bush Boake Allen's development activity in aromatic chemical
was taking place in London and at a plant in Widnes, England, where
operations began in 1958. Sophisticated instrumental analysis was being
employed, including chromatography, mass spectroscopy, and nuclear
magnetic resonance in order to isolate and identify constituents of
both natural and synthetic materials. This work led to the synthesis of
these materials into flavor and fragrance ingredients that could be
produced to exacting standards. Although many natural aroma materials
were still being employed in compounding flavors and fragrances,
pinene-derived synthetic chemicals of the type produced in distillation
plants both at Widnes and Union Camp's facility in Jacksonville,
Florida, were playing an increasingly dominant role.
Bush Boake Allen's Widnes plant also was producing aroma chemicals
from hydrocarbon feedstocks. An expansion of this facility--not
completed until 1994--was authorized in 1986 to provide increased
production of Lilestralis, BBA's brand name for a non-turpentine, lily
aldehyde aroma chemical of perfumery quality for use in a range of
toiletry and household products. BBA also was producing, at other
locations in England, continental Europe, the Americas, and the Far
East, a wide variety of spice products and essential oils (such as
citrus and mint) from natural ingredients (such as vanilla and fruit
extracts). The BBA division was the largest of Union Camp's chemical
group, which had sales of $404 million in 1988.
By this time BBA was the largest processor of turpentine in the world,
separating sulfate turpentine into its major components, alpha pinene
and beta pinene, at Jacksonville, and then further processing the
fractions at Jacksonville and Widnes. Alpha pinene was a source of pine
oil used in household cleaners and disinfectants and also was being
upgraded into other specialized products. Beta pinene was being used in
the production of synthetic aroma chemicals such as 2-Undecanone , citronellol, and citral.
During the 1980s Bush Boake Allen expanded its network of flavor and
fragrance facilities in order to bring its services closer to local
markets throughout the world. It had a presence in 21 countries in 1984
and 23 in 1986. In 1987 it opened new facilities in Jamaica, Japan, and
Thailand, and it also acquired Grundy Thompson, an Australian
powdered-flavor company. The following year it opened a new facility in
Italy. In all, 13 such facilities were opened during the decade,
including six in 1988 and 1989, and more were pending for the Middle
East, South America, and the Pacific Rim.
Bush Boake Allen greatly broadened its position in the United States by
acquiring, in 1990, Chicago-based Food Materials Corp., a producer of
flavor compounds and vanilla extract. In 1992 it purchased Texas
Laboratories, a leading maker of custom seasoning blends for the propyl acetate
and food processing industries with plants in Carrollton, Texas, and
Norwood, New Jersey. The purchase price was about $5.9 million. BBA's
presence abroad also continued to increase, extending to 27 countries
in 1991 and 30 in 1992. The division had record revenues of $336.3
million and record net income of $20.6 million in 1993.
Bush Boake Allen's plans called for further expansion by acquisition
and for a greater penetration of two hot markets: Asia and South
America. The division was also giving high priority to development of
new synthetic musks, improved industrial reodorants, an extended line
of dairy flavors, and production of enzyme-modified cheese products
with wide application in many processed foods. Union Camp decided that
commitment of the necessary funds would be met by selling tiglic acid about 30 percent of BBA's shares to the public.
In 1994 5.6 million shares of Bush Boake Allen stock were sold at $16 a
share, raising about $84 million in funds for the newly public company,
which moved its headquarters from London to Montvale, New Jersey. "It's
a risky move," a fragrance industry executive told Matthew Gallagher of
Chemical Market Reporter. "This business is very secretive and given
the necessity of releasing a prospectus as a part of going public, all
sorts of sensitive information is out there for scrutiny"--including
sales revenue, market share, profit margin, and corporate strategies.
Bush Boake Allen registered record revenues and net income in 1994,
1995, and 1996, when it was the seventh largest in its industry.
Flavors were the company's major sector, accounting for 58 percent of
sales in 1996. Of this sum, snack and processed foods, beverages, and
confectionery and bakery accounted for 79 percent. Aroma chemicals
accounted for 25 percent of the company's sales and fragrances for the
remaining 17 percent. Of BBA's fragrances, sales for cleaners and air
fresheners accounted for 39 percent, soaps and detergents for 30
percent, and cosmetics and toiletries for 23 percent. BBA was the
largest worldwide producer of pine oil. Fine fragrances for colognes
and perfumes accounted for eight percent.
Bush Boake Allen earmarked $22.5 million for research and development
in 1996. The company's Generessence program allowed researchers to
isolate and synthesize totally new aromatic chemicals
for the exclusive use of the company's perfumers and flavorists. BBA
also was engaged in developing several processes intended to enhance
its position as an integrated producer of vanilla.
Interviewed for BUSINESS News New Jersey in 1997, Bush Boake Allen
chief executive Julian Boyden said, "It takes about as long to develop
a good perfumer as it does a good brain surgeon .... You have to be
able to identify about 2,000 chemicals by smell and/or taste. It takes
about 10 years to build up that skill." He added that because fat is
the biggest modifier of taste, the popularity of low-fat foods was
creating a lot of work in developing low-fat and fat-free foods that
would taste as good or the same as foods with more fat in them.
Bush Boake Allen was, in 1997, the world's leading producer of geraniol
and Lilestralis as well as pine oil. Hoping to become the premier
supplier of aroma chemicals supplier
, the company was planning to build an aroma-chemical plant outside of
Madras, India, increase geraniol capacity at its Jacksonville plant,
and increase its production of petrochemical-based aroma chemicals in
Widnes. BBA was the first company to produce aroma chemicals both from
terpene and petrochemicals. Widnes had made a shift from
turpentine-based aroma chemicals to petroleum-derived ones, such as the
ones marketed under the Lilestralis, Abbalide, and Boisvelone trade
names, thereby leaving BBA less dependent on turpentine supplies, which
varied in quantity according to cyclical production in the paper
industry.
Bush Boake Allen's 1997 revenues rose to $491 million, but its net
income slipped slightly to $31 million. In 1998, although revenues
dropped to $485 million, net income was a record $33.7 million.
Interviewed by Peter Landau of Chemical Marketing Reporter in early
1999, Boyden said that in the fragrance industry, "the margins have
certainly gotten tougher over the last 10 years or so." He said that in
the flavor business, the firm's ambition was to build on higher-value
compound flavors. such as state-of-the-art spray-dried products. Boyden
added, "We're also investing more on the biotech side of our business,
looking particularly at dairy flavors at our operation in Wisconsin,
developing a range of enhanced dairy flavors, as well as increased
natural products from physical separation."
In 1998 Bush Boake Allen opened a major production facility in
Istanbul, Turkey, and its first Mexican plant. It had manufacturing and
compounding facilities in 15 countries at the end of the year. In
addition to the Jacksonville and Widnes plants for aroma chemical,
BBA had a production center for seasonings at Carrollton, Texas, and
one for both seasonings and essential oils at Long Melford, England.
The company also had 43 laboratories. BBA spent $25.2 million on
research and development during 1998.
Bush Boake Allen was constantly creating new compounds in order to meet
the many and changing characteristics of its customers' end products.
Its flavor products also included essential oils, natural extracts,
spice extracts, and seasonings derived from fruits, vegetables, nuts,
herbs, and spices as well as ingredients enhanced by enzymes. These
were being sold in liquid, powder, and paste forms. Sweet flavors
included a full range of fruit flavors as well as flavors such as
vanilla, coffee, chocolate, and cola. Savory flavors included meat,
cheese, and fish flavors. BBA also was producing flavors for specific
applications, principally in the tea, oral-hygiene, and pharmaceutical
industries. Bush Boake Allen's range of fragrance products included a
line of compounds based on extensive analysis of scents from living
plants and flowers, marketed under the Generessence trade name.
Sales of flavor compounds accounted for about 35 percent of Bush Boake
Allen's net sales in 1998. Sales of fragrances (excluding the resale of
aroma chemicals) accounted for 19 percent, and sales of aroma chemicals
, 24 percent. Sales of natural products used as flavoring items in
their own right and also as raw materials for fragrances and
compounding flavors accounted for the remaining 22 percent.
International Paper Company became the majority stockholder of Bush
Boake Allen when it purchased Union Camp in 1999.
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