GVDBF - Givaudan: Sticky Player In A Niche Industry
Investment Thesis
It is quite exciting to find a niche market with several secular tailwinds and top players' rational behavior. In my opinion, Flavors & Fragrances (F&F) is such a type of niche industry. Top 4 players consist of more than half of the market share with trends of continuing consolidation. In addition to that, the sector has substantial barriers to entry that keep protecting incumbents.
Leading player in the industry is Givaudan (GVDBF) (GVDNY), along with International Flavors & Fragrances (IFF), Symrise (SYIEF), and Firmenich (private company). In my view, Givaudan is