AarhusKarlshamn restructures European cosmetics distribution

The changes mean that AAK start to run and manage the distribution network on a European-wide basis, which will see the existing contract with Univar Europe gradually phased out towards the end of the year to ensure continuity of supplies and service.

However, one exception will be the UK and Ireland market, where the agreement with Univar UK will be continued next year, meaning that the company will continue to distribute non-branded AAK ingredients on a non-exclusive basis.

The company says that the changes to its distribution network will help it to service its customers using a streamlined distribution network that meets the requirements for its ambition to become 'one single interface between us and the customer'.

The move follows the merger between Karlshamns and Aarhus, which was sealed in September 2005. Since then a new business structure is being developed to increase the company's presence in the oils and fats industry in a global basis.

Its cosmetics operations are being developed to build on its strong position in the market by broadening its current range of ingredients. During the course of the year this should mean additions to all areas, with a particular focus on developing its natural specialty oils portfolio.

The company, which has a SEK10bn (€1.1bn) turnover, has a significant presence in the Northern European and North American markets.

Both companies had developed their businesses supplying oils and fats to the food industry, but in recent years significant growth has been experienced for the supply of personal care ingredients.

Karlshamns had built up its personal care portfolio supplying Lipids to the industry, and in 2000 formed its Lipids for Care division.

Likewise Aarhus has built a significant portfolio of vegetable-based cosmetic ingredients in recent years, which had also generated significant growth for the company.