IIFFInternational Flavors & Fragrances, Inc.

International Flavors & Fragrances devises the tastes and smells in other people's products — from yoghurt to laundry powder.

A fragrance costs pennies in the price of a product but decides whether it is bought again: the smell of a detergent and the taste of a drink are recognised by the consumer and changing them is risky. A formulation therefore stays with its supplier for years, and switching requires reformulating the product entirely.

The company grew substantially through acquisitions, including a large biotechnology business in enzymes and cultures, and along with the scale it took on heavy debt. Reducing that by selling divisions is the central story of recent years. Risks: demand from consumer goods makers, natural raw material prices and the cost of servicing debt. A dividend is paid.