CARIBBEAN Flavours & Fragrances (CFF) is investing in laboratory technology and technical expertise to help food and beverage manufacturers in the region transition from synthetic to naturally derived colours. The move comes as demand for natural alternatives grows in major international markets.

“As soon as there is a new trend, it is right here in Jamaica, and we are introducing it. That’s one of the areas I think we continuously excel in,” said Executive Director Ian Kelly at the company’s annual general meeting on Wednesday.

CFF has been appointed regional distributor for Sensient Technologies, one of the world’s largest colour companies. Sensient sources raw materials and supplies the colours, which CFF sells across Trinidad and Tobago, Suriname, St Vincent and the Grenadines, Barbados and Guyana. Kelly said CFF ranked fourth in Sensient’s regional sales last year, with Trinidad accounting for the largest share of its business.

The move into natural colours mirrors an earlier investment in sugar-reduction technology, which came before the local market was ready and ultimately resulted in the company writing off part of its investment when demand failed to materialise. But the situation changed after the Government introduced a tax on sweetened beverages, creating a financial incentive for manufacturers to reformulate. Manufacturers subsequently returned to CFF for the technology as they looked to reduce sugar without compromising the taste of their products.

“Unlike in previous times when it was just moral suasion, there’s now a tax that is imposed, and as a result of that many people are making changes to their formulation. Formulation changes are not an overnight thing, so many large companies are now doing their testing before going commercial,” Kelly said.

CFF is now applying a similar approach to colour reformulation as manufacturers respond to changing consumer preferences and regulatory developments in international markets. In the United States, the Food and Drug Administration (FDA) is working with manufacturers to phase out six petroleum-based synthetic food dyes — Red 40, Yellow 5, Yellow 6, Blue 1, Blue 2 and Green 3 — while accelerating the approval of naturally derived alternatives. Major food manufacturers have begun setting timelines to remove certified synthetic colours from some or all of their products.

KELLY…by the end of this financial year you will see what we have been doing to improve our top line, despite the toughness of the economy.

CFF is concentrating initially on popular colours, particularly red and yellow. Kelly told the Jamaica Observer that he could not say what the products are derived from because that information belongs to Sensient. Kelly added that the colour business has yet to make a material contribution to CFF’s revenue, but the company is continuing the work with an eye to next year.

The natural-colour investment comes alongside a year of stronger financial performance. CFF surpassed $1 billion in revenue for the first time in 2025, with revenue increasing 13.3 per cent. Exports grew 21 per cent during the year, driven by demand for flavours used in beverages, sweets and baking. Trinidad and Tobago remains the company’s largest export market. Net profit was $113.7 million in 2025, which Kelly described as a record performance on a comparable basis. He noted that the $132.8 million recorded in 2023 benefited from the tax incentives available to junior market-listed companies. Under the Junior Market concession, companies receive a 100 per cent remission of income tax for the first five years after listing, and a 50 per cent remission for the following five years. The company had been benefiting from the 50 per cent remission but paid the full applicable corporate tax in 2025. The company attributed the performance to disciplined cost management and the broader growth strategy.

“Providing that base in an economy that has not grown in the way it should have grown within a disaster year, I think this is a major accomplishment,” Kelly said.

CFF is looking to further expand its top line, despite the challenging economic environment.

“By the end of this financial year you will see what we have been doing to improve our top line, despite the toughness of the economy,” said Kelly.