There’s good news for this season’s Florida orange crop. The USDA’s final citrus forecast offers an upwardly revised report for 2023-2024, increasing the agency’s volume predictions for the year’s end. Florida orange growers are ready to find the silver lining in any positive news, including a one percent production increase compared to last year.
The USDA Revises 2023-2024 Florida Orange Crop Numbers Up One Percent
Orange season in Florida starts in the fall and culminates with mid-summer harvests. The challenges facing the industry are year-round, however. Florida orange growers battle a combination of infectious diseases, natural disasters, and climate change. For an industry facing two decades of declining harvests, this year’s harvest was a positive outlier – by even conservative measures, it held steady to 2022-2023 numbers.
A recent revision from the USDA’s July citrus industry report, Florida’s orange harvest increased 1% to 18 million boxes. That’s a hard-earned (and rare) win for the nation’s number-two orange-producing state.
Florida’s Orange Production Challenges
No crop is perfectly reliable, but Florida’s orange crop was close, growing like clockwork for decades. Florida orange production enjoyed two long periods of rapid growth. From 1965 through 1975, production nearly doubled, only to face a series of freezes through the mid-1980s. Severe winters impacted production levels five times between 1975 and 2000, when the state reached an all-time high of 11 million tons.
Since 2000, crop yields have fallen year-over-year in 15 of the past 23 growing seasons, and the net decline has cut Florida’s yield production by 92%.
Orange Crops Impacted by Disease, Natural Disasters
Infectious diseases have replaced seasonal frost as the biggest threat to Florida’s orange crops. First, citrus canker disease spread from a relatively small number of groves to more parts of the state. Initially discovered in 1910 and thought to be eradicated in the 1930s, citrus canker returned in 1995. Two hurricanes spread the disease statewide, causing the USDA to abandon its second eradication attempt in 2006.
At nearly the same time, citrus greening disease was confirmed in Florida. The insect-spread disease is nearly impossible to contain and remains incurable, despite tens of millions of dollars invested in research and treatment.
Disease and severe weather have pushed Florida into a distant second behind California in US domestic organge production. With the USDA’s revision, Florida produced nearly 18 million boxes in the most recent growing season, compared to California’s 47.5 million boxes*.
Florachem Supports Florida’s Orange Growers
As a global leader in specialty citrus ingredients, Florachem is deeply invested in the long-term success of Florida’s orange crops. We actively monitor harvest tallies, weather-related hazards, and the quality of oranges to ensure the best input materials for our products. It’s a commitment we make on behalf of orange producers in Florida and our customers worldwide. See what an obsessive attention to quality can do for your organization; contact our team today.
* Florida orange boxes weigh 90 pounds. California measures boxes at 80 pounds.
Chris Hunt’s sixteen-year career in the flavor and fragrance industry has offered plenty of learning opportunities and lasting connections. We are thrilled that Chris’ continued commitment to growth and creativity has brought him halfway around the globe to Florachem.
Starting this month, Chris Hunt joins Florachem as our Business Development Director. He will play a vital role in expanding relationships with existing customers and introducing our products and services to new partners. Leading our new European sales office, Hunt will serve as an invaluable resource and partner for thriving businesses across the Eurozone. We’re excited to see his experience add real value to our organization from Day One.
At Home in the Citrus Flavors & Fragrance Ingredients Business
Chris’s first role saw him working as a chemist in his hometown of Bury St. Edmunds in the UK, focusing primarily on the analysis of essential oils. Company management convinced him to transition into a sales role after he led a presentation (in Florida, by coincidence). This move reshaped the next decade of his professional career, as he moved into aroma chemicals, brewery ingredient sales and expanded manufacturer relationships in Southeast Asia.
Hunt jumped the Channel to work with a German supplier, where he quickly assumed responsibility for Beer, Wine, and Spirits flavors, plus Citrus and Fruity flavors. After five years on the continent, it was home to the UK to assume a management role in charge of flavor and seasoning for a small UK company.
Before long, a previous connection recommended Chris check out Florachem; it was an immediate fit, and we couldn’t be happier to have him on board. Chris is the ideal leader to bring our growing citrus ingredients portfolio to flavor and fragrance manufacturers in Europe and Asia.
Organizations Grow with the Right People
Chris’s deep experience comes at an important time for Florachem. Early last year, Florachem celebrated the opening of a new citrus ingredients manufacturing site with state-of-the-art distillation capabilities. Chris will lead Florachem’s first European sales office and work to expand our presence in Asia. Adding industry leaders like Chris Hunt accelerates our team’s creativity, professionalism, and capabilities. We are invested in welcoming established leaders and creative thinkers to serve our customers. Florachem is committed to your success; contact us today to learn more.
The Florachem team is thrilled to confirm Chuck Kropp as our new chief financial officer. Chuck’s unique industry-specific experience has already made him an incredibly valuable part of our growing organization, and his arrival couldn’t have come at a better time. We’re excited to add his talents to our expanding operations and capabilities for years to come.
The Right Experience for the Job
Chuck joins Florachem with over 25 years of manufacturing finance experience in both the public and private sectors, always with a customer-focused approach. Recently, Chuck helped a specialty chemical company grow and ultimately go public on the NYSE, which is certainly no small feat. Before specialty ingredients, Chuck worked in smart-grid utility manufacturing, thermal components, and the automotive industry. That experience will be critical to serving our diverse customer base.
Making Moves – to Sunny Florida
After spending much of his professional life in the St. Louis area, Chuck is making the move to Jacksonville, home to the Florachem headquarters. We’re thrilled to have him as a resource for our leadership and management teams.
Chuck is an avid runner in his spare time and enjoys finding outstanding local cuisine.
“I’m very excited to join Florachem. The team here is very energetic and are industry experts for the products we provide our customers.”
– Chuck Kropp, Florachem CFO
Growth Starts at the Top
Florachem’s long-term success starts with bringing in smart, motivated leaders. Our ongoing commitment to finding great people augments our investments in new facilities and strategic partnerships. See what Florachem is all about; contact us today, and be sure to welcome Chuck to the Florachem team!
Citrus flavors have always been a consumer favorite in packaged food and beverages. Over the past year, however, citrus-flavored sports drinks have exploded in the Asia-Pacific (APAC) region, surprising manufacturers and creating a race to meet skyrocketing demand.
The sports drink market in APAC is growing faster than the broader food and beverage category, with a forecast compound annual growth rate (CAGR) of 7% through 2029.
The appeal of citrus drinks in the APAC market mirrors the value proposition attracting consumers in other markets: great flavor and health benefits.
What’s Driving the Citrus Flavor Trend?
The explosion in demand overseas represents an amplified version of similar trends worldwide and established North American and European markets.
A substantial component of that growth is the expansion of sports drink varieties. Once dominated by a few key players like Gatorade, sports drinks are now catering to a broader audience with new, natural flavors and specific health features.
For North American manufacturers, understanding beverage trends overseas cements sales numbers in more established markets.
Natural flavors like citrus fruits appeal to health-and wellness-focused consumers. The COVID-19 pandemic triggered a renewed interest in functional ingredients promising immunity support and antioxidants. Additionally, there’s a continued shift toward natural, sustainable ingredients that show no sign of slowing down.
Citrus-flavored sports drinks provide the “clean label” appeal many consumers are looking for while delivering critical nutrients like vitamin C, vitamin B6, and riboflavin.
Fresh Flavors for Changing Tastes
One of the appealing characteristics of citrus is variety. Manufacturers rely on diverse citrus fruits to create fresh, complex, and delightful flavors that adapt well across applications. Whether consumers are looking for sustained energy, vitamins and minerals, a carbonated citrus beverage, or a low-calorie alternative to other products, citrus-flavored drinks can deliver.
Sports drinks were historically a one-note offering centered on artificial flavors. While those products remain popular, market observers note a robust growth trend in multi-note offerings that blend one or more citrus fruits with other flavor pairings. It’s no surprise to find a citrus drink list with several blends, including new players like blood orange flavor, lemon, lime, passion fruit, dragon fruit, and more.
As APAC Surges, the North American Citrus Flavors Market Remains Strong
The well-established North American citrus flavors market, including sports drinks and other beverage categories, remains sound, with a forecasted 3.84% CAGR through 2027.
For many beverage manufacturers, emerging segments like hard seltzers, ready-to-drink (RTD) cocktails, and non-alcoholic beer and liquor beverages are top growth opportunities – and citrus flavors can play an important role in all of them.
Surveys show that American consumers are looking to citrus for punchy, tangy flavors. Manufacturers achieve excellent results by combining familiar staples (orange and lemon) with innovative newcomers like pink grapefruit and key lime headlining some of the newest domestic product debuts.
Develop Winning Citrus-Flavored Drinks with Florachem
There’s a domestic and international appreciation for that fresh, exciting citrus taste in consumer products.
No matter what market you’re targeting with your flavors, Florachem is committed to supplying you with the quality citrus ingredients you need to set your brand apart.
With world-class facilities and technical expertise, we’re ready to create and supply you with exactly the citrus ingredients you need to put the best possible product in the hands of your customers – no matter where they are. Let’s start the conversation!
Limonene is a naturally occurring compound sourced from orange peels and the peels of other citrus fruits. In today’s consumer-focused market, Limonene and its derivatives offer manufacturers the option to use a natural, biodegradable compound with nearly endless applications.
2022 is a transformational year at Florachem as the company celebrates the completion of a new natural citrus ingredients facility while also welcoming SK Capital Partners.
“The new partnership will further increase Florachem’s investments in new technologies and capabilities, expanding the company’s portfolio of new and innovative natural ingredients and product solutions for it’s clients.” – Jon Leonard, President and CEO
For the full press release see below
Jacksonville, Florida, May 2, 2022 — Funds advised by SK Capital Partners, LP (“SK Capital”), a private investment firm focused on the specialty materials, specialty chemicals, and pharmaceuticals sectors, today announced the acquisition of Florachem Holdings, LLC (“Florachem” or the “Company”) from an affiliate of Carmelina Capital, LLC.
Florachem is a leading manufacturer and supplier of natural plant-based ingredients including citrus, pine, and specialty rosin resins. The Company’s high quality natural products help their global customer base improve product performance with sustainable, clean-label ingredients. Florachem partners with industry- leading customers across diverse end markets including flavor and fragrance, personal care, industrial, and coatings and adhesives.
Florachem, led by President and CEO, Jon Leonard, is headquartered in Jacksonville, Florida, where it has world-class citrus and pine manufacturing and research and development capabilities. Additionally, the Company is in the process of completing the construction of a new state-of-the-art, food-grade manufacturing facility that will expand Florachem’s capacity, add new capabilities, and support the Company’s strategic expansion of its natural citrus ingredient product line.
“Jon Leonard and his team have built a tremendously successful platform with an industry-wide reputation for customer service, reliability, and quality,” said Mario Toukan, Managing Director of SK Capital. “We look forward to partnering with the Florachem team to continue to service its customer and supplier bases, expand the platform’s reach and capabilities, and accelerate growth.”
“We are extremely excited to partner with SK Capital, which shares our vision and strong set of values while bringing significant resources and relationships to the table,” said Jon Leonard. “SK Capital is committed to helping Florachem grow its business and capabilities, while protecting and enhancing our high-quality reputation in the industry.”
Jonathan Borell, a Managing Director of SK Capital added, “SK Capital has significant experience investing in ingredients businesses, and we believe we have found a great opportunity to partner with Jon Leonard and his team to build a leading natural ingredients platform. With nearly 30 years of experience, Jon is a respected leader in his industry. We feel privileged to play a part in this ongoing story and to work closely with Florachem’s employees to bring further opportunities for growth and success to fruition.”
Goodwin Procter LLP acted as legal counsel to SK Capital and committed debt financing was provided by Stellus Capital Management.
About SK Capital
SK Capital is a private investment firm with a disciplined focus on the specialty materials, specialty chemicals and pharmaceuticals sectors. The firm seeks to build strong and growing businesses that create substantial long-term economic value. SK Capital aims to utilize its industry, operating, and investment experience to identify opportunities to transform businesses into higher performing organizations with improved strategic positioning, growth, and profitability, as well as lower operating risk. SK Capital’s portfolio of businesses generates revenues of approximately $15 billion annually, employs more than 20,000 people globally and operates 191 plants in 32 countries. The firm currently has approximately $6.6 billion of assets under management. For more information, please visit www.skcapitalpartners.com.
About Florachem Holdings, LLC
Founded in 1988, Jacksonville, Florida-based Florachem is a leading manufacturer and supplier of natural plant-based ingredients, including citrus, pine, and specialty rosin resins. The Company serves a global customer base across the flavor and fragrance, personal care, industrial, and coatings and adhesives markets. Florachem currently operates two facilities in North America. For more information, please visit www.florachem.com.
About Carmelina Capital Partners
Carmelina Capital Partners is a Los Angeles-based private investment firm that partners with exceptional founder-led and family-owned businesses. Carmelina has extensive experience partnering with owner-operators across a broad range of industries to facilitate shareholder liquidity, support rapid growth, and drive accelerated value creation. For more information, please visit www.carmelina.com.
Florachem is proud to announce the purchase and development of its second manufacturing location supporting the company’s strategic expansion of its natural citrus ingredient product line.
Florachem is growing! We are expanding our team and capabilities with the addition of a second site located in Lakeland, FL while continuing to invest in our Jacksonville, FL headquarters. The new 10-acre campus in Lakeland will be built from the ground up in several phases. The new facility will ultimately add more than 80,000 sq. ft. of manufacturing capacity to Florachem’s existing footprint. The new facility is designed with the latest technology for the production of natural citrus flavor and fragrance ingredients. Additionally, it will significantly expand Florachem’s storage capacity by over 5,000 Tons.
“We are very focused on meeting our clients’ needs for exceptional natural, clean label ingredients and service. In order to meet those needs we are undergoing a major growth transformation as a company.” – Doug Burlen, Vice President – Commercial
“The new site gives us a blank canvas to build a completely new, modern, state of the art manufacturing facility with the latest separation technologies.” – Brandy Geiger, Director – Citrus Ingredients
Jon Leonard, Florachem President and CEO, commented, “We commissioned our Jacksonville headquarters as a brand-new facility in 2018 and we’ve been building a world-class team with many years of combined expertise in citrus and natural specialty ingredients. Now the addition of the Lakeland site builds on our capability as a leading independent citrus ingredients provider. Our expanded portfolio will include a broad range of high-quality citrus ingredients desired by our Flavor and Fragrance clients.”
The new Florachem campus is strategically located in Florida’s citrus belt with nearby access to major transportation lanes. Phase 1 of the project is expected to be complete with manufacturing to begin in Q4 of 2021. Along with the new site and capabilities, Florachem looks forward to adding approximately 20 new team members over several phases. “We care a lot about having a culture where our team enjoys coming to work and is proud of the products and the service we provide to our clients,” says Jon Leonard, CEO. “This is an opportunity to expand our team and build on that culture of providing world-class service to our customers.”
Florachem announces the appointment of Doug Burlen to the new role of Vice President – Commercial, where he will be leading all sales and procurement functions for the company.
Doug brings more than 25 years experience in commercial and strategic roles with particularly deep experience in the citrus flavor & fragrance industry. Prior to joining Florachem he was most recently with Firmenich where he held positions as Global Director – Citrus Procurement as well as Purchasing Director – Mergers & Acquisitions & Citrus Strategy. He also previously worked with Cargill where he was responsible for leading Cargill Flavors North America juice business.
“My entire career I have always been most motivated by building close relationships and identifying ways to create value for clients and suppliers. I’m super excited to have this opportunity to join the Florachem team and build on the company’s great legacy as a leader for more than 30 years in the manufacture and supply of natural & renewable citrus, pine and other plant–based ingredients.” – Doug Burlen, Vice President – Commercial
Florachem’s CEO, Jon Leonard commented: “The creation of this role and Doug’s addition is key to our future as we are executing on the next strategic growth cycle of our business. In partnership with Carmelina Capital Partners we will be significantly expanding our manufacturing capabilities and product portfolio to meet the growing demand for natural, clean label, sustainable ingredients.”
Florachem is pleased to announce the addition of Brandy Geiger to its senior management team as Director – Citrus Ingredients. Brandy has spent over 20 years in the creation and utilization of global flavor and fragrance ingredients with a specialty in citrus. She adds a well-rounded technical expertise to the expanding Florachem platform. Always willing to share her love of citrus, she has presented educational seminars both domestically and internationally.
“Presenting in China reinforced for me how universal citrus is for flavors and fragrances. I’m excited to be joining an innovative team focused on providing natural and sustainable ingredients for today’s evolving customer.” – Brandy Geiger, Director – Citrus Ingredients
“Having worked together before I knew she would be the right person to help guide our continued success and commercial growth.” – Jon Leonard, CEO
Brandy is a member of the WFFC and a University of Florida graduate in Chemistry. She has a strong technical background in product development, quality control and regulatory with previous experience at Kerry, Givaudan, Florida Chemical and Treatt.
Florachem is committed to keeping essential businesses operating. Our operations team will continue to manufacture and ship products during this critical time period.
Florachem produces products consumed by the Chemical Sector for cleaning, disinfecting and sanitizing.
Florachem produces products consumed by the Food and Beverage Sector. We are focused on keeping everyone safe and continuously monitoring governmental orders and
CDC guidelines. Thank you for being a valued partner.
