Nicola Tainen, CEO of the Norwegian Sovereign Wealth Fund, interviews Gilles Andrier, who has served as CEO of Givaudan for 21 years. Givaudan is the world's leading company in flavors and fragrances, operating from their R&D center in Switzerland.

The conversation explores how Givaudan creates the tastes and smells that define consumer products worldwide, from Tom Ford perfumes to Snapple beverages. Andrier explains their competitive briefing process, the role of their 200 perfumers globally, and how they've maintained market leadership while expanding into adjacent beauty and health markets.

The discussion covers the creative process behind fragrance development, the psychology of taste and smell, market dynamics with four major players, and Givaudan's corporate culture built around performance and humanity. Andrier also shares leadership insights from his two-decade tenure transforming the company from 4,000 to 17,000 employees.

The Science Behind Taste and Smell Dominance

Humans dedicate 500 out of 2,000 total receptors exclusively to taste and smell - 'it's basically the surviving kit' for detecting poison through bitterness and energy through sweetness

Taste and smell create the fastest pathway from senses to memory and emotions, making them the top differentiating factor for consumer repurchase decisions

Despite representing only 4-5% of costs for fragrances and 0.5% for flavors, these elements drive the biggest factor in whether consumers buy products again

The Competitive Briefing Process Behind Every Scent

Clients like Tom Ford issue competitive briefs to multiple fragrance houses, with Givaudan's 200 perfumers worldwide competing internally and externally for each project

Development involves perfumers writing formulas like musical compositions, supported by technicians with 500-1500 ingredient palettes and evaluators who bridge creativity with client needs

Projects can take three weeks to three years, with Givaudan working for free during development but owning the IP on winning formulas - 'we manufacture the fragrance or flavor and sell it with profit'

Every formula is exclusive to one client and brand, creating thousands of different products despite infinite possibilities for variation

When Consumer Testing Fails Spectacularly

Red Bull had 'one of the worst test results ever' with consumers hating the taste, yet became the second best-selling beverage globally by using small bottles and premium pricing

Angel by Mugler was 'really, really disruptive' and polarizing but became 'the mother of many, many fragrances' in the gourmand (sweet, chocolate, edible) category

'The more you test, the more you're going to lock yourself into something consumers already know' - breakthrough successes often weren't tested because they required unfamiliar experiences

Market Dynamics and the Four-Player Oligopoly

The industry consolidated into four major players, with recent mergers creating 'big conglomerates' as Firmenich joined DSM and IFF merged with DuPont

Givaudan chose a different strategy, expanding into adjacent spaces like Active Beauty (now $300 million business) and makeup solutions while staying focused on core F&F competencies

Chinese competitors emerged mainly as ingredient suppliers rather than full-service competitors, while Givaudan established deep local presence with 1,200 people across five Chinese sites

Fine fragrances market shows 15% growth with 25% newness but only 10% erosion, creating rapid turnover as brands compete for top 10-15 positions

The Brutal Reality of Perfumer Careers

Givaudan's perfumery school, established 80 years ago, trained creators of 40% of all perfumes sold globally, but selection focuses on resilience over just olfactory ability

'You're going to lose a brief nine times out of ten or eight times out of ten' - perfumers face constant rejection requiring exceptional persistence over 40-year careers

'Everybody has more or less a good nose' but success requires passion, creativity, and the mental strength to 'grab all your confidence to go on the next brief'

Leadership Philosophy After 21 Years at the Helm

Corporate culture balances 'performance-driven' execution with 'heart and soul' humanity - 'bullshit at Givaudan doesn't survive more than three seconds'

Growth from 4,000 to 17,000 employees while maintaining agility through three shared service centers instead of outsourcing across 130 sites

'Don't plan your career by saying I want to be a CEO - that's the best way not to become a CEO' - focus on enjoying each role and having impact over status

Career advice centers on experimentation and risk-taking: 'How do I know what I want to do? Because I've never done it' - discovery comes through trying new challenges