Site Visit: Advanced Biotech Relocates, Expands International Reach
Today’s flavor and fragrance customers demand sufficient and
stable supply of ingredients at a competitive price point, noted
Augustin Isernia, president of Advanced Biotech (ABT), during
P&F’s recent visit to the company’s new headquarters in Totowa,
N.J. This requires suppliers to control costs via improved processes
and supply chain, and identification of lower-cost alternatives to
cost-challenged ingredients, while also meeting regulatory and
In order to meet evolving market needs, Advanced Biotech
undertook a two-year relocation project, which included the new
facility, which sits on a 5-acre parcel in Totowa, not far from the
company’s;longtime;site;in;Paterson,;N.J.;Moving;to;a;neighbor-ing area allowed the company to maintain its experienced staff.
This new manufacturing site focuses on R&D and the production of ingredients for the flavor, fragrance and cosmetic
sectors, including isolates, extracts, fermentation products and
materials derived from reaction flavor technology. The new
85,000-sq-ft headquarters was retrofitted for their use. ABT
will implement a new computer system that integrates inventory, quality control, sales and accounting modules. This allows
greater transparency and efficiency throughout the company.
The facility has increased its production and storage capacity
to support domestic and international expansion.
ABT has grown at a double-digit pace every year, primarily
driven by organic growth, according to Isernia, with its business
comprising about 85% flavor and 15% fragrance. Looking forward, the company has identified several growth opportunities,
including new customers generated by the fallout of flavor and
fragrance industry consolidation. The migration of ingredient
palettes from synthetic/nature identical to natural is another
area for ongoing growth.
“The portfolio for natural ingredients right now is rather
small, compared to artificial,” says Isernia. “We still have a lot
more work to do in terms of bringing these products to market
and developing more tools for perfumers, flavorists and cosmet-
ics applications people.”
A growing number of customers are looking for flavoring
ingredients, oils and organic-compliant materials for cosmet-
ics in which natural claims have become increasingly desirable.
Natural fragrances are also growing the business. Meanwhile,
health and wellness surrounding fat, salt and sugar/sweetener
substitutes/replacers offers further business opportunities, par-
ticularly with modifiers for food ingredient systems that include
nutraceuticals and vitamin mixes. At the same time, regulatory
concerns regarding essential oils have boosted opportunities
for purified natural molecules. The demand for allergen-free
flavor and fragrance ingredients will continue to increase in
the coming decade.
From left: Robert De Simone, CEO; James Mulligan CFO; and Augustin Isernia,
President (all Advanced Biotech) in front of the company’s new Totowa, N.J.
The company produces its ingredients to Food Chemical
Codex (FCC) and the EU Union list of flavoring ingredients,
which allows ABT to sell into the European Union. Today, about
35% of Advanced Biotech’s business comprises exports.
To support overseas customers, the company has established
warehousing in Europe, the Far East and Latin America. This
distribution network allows the supplier to avoid expensive air
shipments of hazardous materials, cutting down transit times and
costs. In this way, pre-packed and pre-qualified increments of
5–25 kg can arrive to international customers in one or two days.
“We utilize local public warehousing to minimize costs and
expenses,” says Isernia. “The stocks are local and readily accessible. In today’s business environment, it’s not necessary to build
sites around the globe. Our customers have come to expect exceptional service and on-time deliveries. With this new expansion
ABT will continue to thrive and serve not only its current customer base, but an array of new clients throughout the globe.”