Gilles Andrier

CEO of Givaudan, a global leader in the flavor and fragrance industry.

Claims

As speaker

Mentioned in

Key positions and views

Givaudan's focused strategy on flavors and fragrances is superior to the diversified ingredient conglomerate model pursued by key competitors.

Taste and smell are the most critical drivers of consumer repurchase decisions, making Givaudan's products essential to its clients' success despite their low cost.

Retaining the intellectual property for all developed formulas is a cornerstone of the business model, justified by providing the initial, high-risk creative work for free.

Sustained growth is achieved by driving a high rate of innovation ('newness') that consistently outpaces the natural rate of product erosion in the market.

Long-term, disciplined execution against five-year strategic cycles is a key element of Givaudan's operational success and reliability.

Podcast consensus on Andrier

Points of consensus

▶Givaudan's fine fragrance business is experiencing a period of high growth, specifically double-digit growth over the last five years, fueled by demand from younger consumers (Gen Z and Gen Alpha).Apr 2026

▶The company's success is built on a high rate of innovation and new product introductions, which is necessary to outpace the significant natural erosion rate in the fragrance market.Apr 2026

▶Givaudan operates with a long-term strategic vision, using five-year cycles to guide its business, and has a consistent track record of delivering on its commitments over the last two decades.Apr 2026

▶The company's business model involves retaining the intellectual property for the formulas it develops, justifying this by providing the initial creative work to clients for free.Apr 2026

Points of debate

▶Gilles Andrier advocates for a focused strategy on core flavor and fragrance creation, which contrasts with the diversification strategy of competitors like Firmenich and IFF, who have merged to become broad ingredient conglomerates.Apr 2026

▶There is a tension between the high failure rate for individual perfumers (losing a brief 8-9 times out of 10) and the institutional success of Givaudan, which leverages proprietary molecules and a highly trained talent pool to achieve market leadership.Apr 2026

▶Andrier highlights a significant value disconnect in the market: Givaudan's products constitute a very small percentage of a client's cost of goods (0.5-5%), yet are positioned as the single most important driver of consumer repurchase decisions.Apr 2026

▶While Givaudan has a substantial and long-standing presence in China (30 years, 1,200 employees), Andrier asserts that significant new competitors from the region have not emerged in the core creative business, suggesting a durable competitive moat.Apr 2026

Key themes

▶Focused Growth and Market LeadershipApr 2026

Andrier emphasizes Givaudan's strategy of deep specialization in flavors and fragrances, which has yielded significant growth. This is exemplified by the double-digit boom in fine fragrances, the successful expansion into the 'Active Beauty' segment, and a consistent track record of meeting strategic goals over 20 years.

Givaudan's focused strategy, as described by Andrier, represents a deliberate choice against the diversification trend in the industry, suggesting a conviction that deep expertise in the complex sensory space provides a more durable competitive advantage than scale across adjacent chemical markets.

▶Innovation as a Commercial EngineApr 2026

The company's growth is directly tied to its ability to innovate at a pace that outstrips market churn. Andrier points to a 25% 'newness' rate in fine fragrances, the creation of market-defining proprietary molecules like Aki Gala Wood, and the development of taste modulators for healthier food products as evidence of this R&D-led approach.

For Givaudan, innovation is not just about creating new products but about shaping consumer trends and owning the underlying intellectual property, which transforms R&D from a cost center into a primary source of long-term, defensible revenue streams.

▶The High-Impact, Low-Cost Value PropositionApr 2026

A core tenet of Andrier's narrative is that Givaudan's products are the key differentiator driving consumer loyalty, despite representing a tiny fraction of the client's total cost of goods. He asserts that taste and smell are more critical for repurchase decisions than packaging, advertising, or price.

This value proposition creates immense pricing power and client stickiness; by positioning its products as essential for brand success and retaining the formula's IP, Givaudan embeds itself as a strategic partner rather than a replaceable commodity supplier.

▶Talent and Operational SupremacyApr 2026

Andrier highlights the institutional infrastructure that underpins Givaudan's creative and commercial success. This includes the outsized influence of the Givaudan Perfumery School, which trained perfumers responsible for an estimated 40% of global perfume sales, and the consolidation of global processes into efficient shared services centers.

Andrier's focus on both elite talent cultivation and back-end efficiency demonstrates a belief that industry leadership requires mastering both the 'art' of creation and the 'science' of scalable, profitable operations.

Source episodes

Sentiment over time

Not enough data for timeline

Changes over time

Approx. 30 years ago

Givaudan establishes its presence in China, which has since grown to five large sites and 1,200 employees.

During Andrier's CEO tenure

Presides over a period of massive expansion, with Givaudan's employee count growing from 4,000 to 17,000.

Approx. 8-10 years ago

Givaudan strategically enters the Active Beauty market, which has since become a 300 million business unit.

Last 20 years

Andrier states that Givaudan has consistently delivered on all commitments across four consecutive five-year strategic cycles.

Last 5 years

The fine fragrance division experiences a boom, achieving double-digit growth fueled by demand from Gen Z and Gen Alpha consumers.

Current

Andrier reports that Givaudan is growing at an average of 15% in fine fragrances, with a 25% newness rate offsetting a 10% erosion rate.

Suggested prompts

How does Givaudan's strategy of retaining intellectual property on client formulas affect its long-term competitive moat and client retention? &nearr;What are the primary risks to Givaudan's ability to consistently maintain a 'newness rate' that outpaces the high natural erosion in the fine fragrance market? &nearr;How does Givaudan's focused F&F strategy compare in terms of long-term profitability and risk to the diversified ingredient conglomerate model pursued by competitors IFF and Firmenich? &nearr;What are the implications of the Givaudan Perfumery School's dominance for industry-wide creativity, talent acquisition, and competitive dynamics? &nearr;

Key concepts

Fine Fragrance Growth 5 ep Givaudan Business Model 4 ep Innovation & IP 4 ep Market Dynamics 3 ep Competition & Strategy 2 ep Talent & Training 2 ep China Operations 2 ep Active Beauty Division 1 ep Operational Efficiency 1 ep Cost of Goods Sold 1 ep

Notable quotes

“40% of the perfumes sold in the world were created by perfumers coming from the School of Givaudan.”

Gilles Andrier · Gilles Andrier - CEO of Givaudan | Podcast | In Good Company | Norges Bank Investment Management

“it's roughly on average 4 to 5% of the cost of goods sold on fragrances. And it's 0.5%, 0.6% on flavors.”

Gilles Andrier · Gilles Andrier - CEO of Givaudan | Podcast | In Good Company | Norges Bank Investment Management

“Today, because Givetan, we are growing more like 15% on average in fine fragrances, we are more at a pace of, let's say, 10% erosion, but 25% newness.”

Gilles Andrier · Gilles Andrier - CEO of Givaudan | Podcast | In Good Company | Norges Bank Investment Management

“our fine finance business has been booming for the last five years, double digit. It's been very much fueled by the Gen Z, the Gen Alpha.”

Gilles Andrier · Gilles Andrier - CEO of Givaudan | Podcast | In Good Company | Norges Bank Investment Management

Report last updated: Apr 21, 2026

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