- T. Hasegawa USA has acquired Mission Flavors & Fragrances for an undisclosed amount, according to a press release.
- Mission Flavors & Fragrances is a manufacturer of custom flavor solutions based in California. T. Hasegawa, one of the largest global flavor companies with headquarters in Tokyo and North American offices in Los Angeles, said this deal continues its expansion within the U.S. market.
- The company said that the acquisition fits into T. Hasegawa's strategy to broaden its flavors in dairy, bakery, plant-based alternatives, fruit filling and confectionary categories. Mission Flavors & Fragrances "expands our technical capabilities and overall flavor portfolio so we can better serve our customers," said Tom Damiano, CEO of T. Hasegawa USA.
This latest deal continues the recent M&A trend in the ingredients space. The acquisition allows T. Hasegawa to grow its presence in the U.S. and its experience in custom flavors, which could help it keep up with the rising competition from other ingredients companies that are also making deals.
Last year, Kerry Group grew its clean label food protection capabilities through the acquisitions of IsoAge Technologies and Biosecur Lab. Ingredion recently acquired the remaining portion of Verdient Foods, which produces pulse-based concentrates and flours from peas, lentils and fava bean. And in a mega-merger, International Flavors & Fragrances is buying DuPont's Nutrition & Biosciences business in a deal the companies valued at $26.2 billion.
Similar to other ingredients companies in the space, T. Hasegawa has been working to expand its flavor portfolio. Last August, it hired Jim Yang as vice president of research and development. Yang, who had overseen this area at Kerry Group, is focusing on flavor development for T. Hasegawa. And just a few months ago, the company announced the launch of its Japanese citrus portfolio with eight new flavors. This is at a time when citrus flavors have been in demand.
As customization has grown more important to food and beverage manufacturers, Mission Flavors & Fragrances custom flavor solutions in trendy categories like plant-based alternatives and confectionary would continue T. Hasegawa's ability to innovate in the space. The company has a staff of flavor chemists focused on developing innovative flavors for food and beverage products.
A recent 2021 trend report from T. Hasegawa found that plant-based proteins are trending as consumers seek to improve their overall health, and other reports have found that flavor companies are increasingly focused on functional ingredients and mixed flavor profiles.
Mission Flavors & Fragrances, which was founded in 1987, said it would benefit from T. Hasegawa’s expertise in advanced technology, thermal processing and supply chain management, allowing the company to grow its reach and capabilities. Mission's office and production will stay in California, expanding T. Hasegawa's presence in the country's most populous state.
"On a day-to-day, it's business as usual — only now we have new resources and capabilities to accelerate driving value for our customers around the world," Damiano told Food Navigator.