Lucta stands out in a business climatewhere medium-sized companies are notrenowned for devoting so much of their

resources to building up a strong interna-tional presence. As it turns out, internationalexpansion has been a reality for the Spanishmanufacturer since it first opened shop inColombia and subsequently in the US some35 years ago – at a time when this move wasunheard of for the mostly parochial Spanishbusiness community.

“There is no question that we haveachieved our objective of being a truly inter-national group,” declares managing directorCarlos Prada. “Our next challenge is tobecome global, something altogether dif-ferent. The contrast between the two ismuch more than word play. We want tostand for quality and value everywhere byintegrating and standardising our offeringand being present in countries that give usaccess to key markets.”

This, of course, is easier said than done.“We are facing tough competition fromlarger-sized household names,” he admits,“but we are far from deterred. We are bet-ting on specialisation coupled with a ‘goingglobal’ approach to see us through.” Andthis does not sound like a delusion ofgrandeur when one takes into account theorigins of this ‘fragrant’ manufacturer.

History and valuesBattling against the odds has never been aliento Lucta. “Our company grew in the dim yearsof post-civil war Spain where opportunities wereas limited as supplies. Yet by 1955 Lucta hadmoved to its 3000m2 plant in Barcelona’sNumancia Street. Production remainedthere until in 1975 we were rehoused to ourpresent location in Montornés del Valles –just outside Barcelona – where we have a60,000m2 manufacturing site and substan-tial office space at our disposal. That wewere able to grow and spread out to othercountries in that isolationist period of ourhistory is quite remarkable,” says Mr Prada.

Today, Lucta is a melting pot of culturesand languages brought together by anumber of core values that are very dear tothe company’s owners and managers.

“We have strived to make Lucta a placewhere people want to stay, where they feel athome as part of a community that stretchesout far beyond Spain,” he continues. “It isvery fashionable these days to claim thatpeople are your greatest resource: that hasbeen our business philosophy all along, as itis proven beyond doubt by the fact that thereare a surprisingly large number of workersstaying here for a significant proportion oftheir working lives. Like many others I havebeen at Lucta for 20-odd years.”

Furthermore, there is also a commitmentto openness and social responsibility. “Weare members of Responsible Care, thechemical industry’s association for theencouragement of sustainable developmentand the improvement of our health, safetyand environmental performance record atnational and global level. At a time when somany doubts are being raised about thechemical industry’s environmental impact,our belonging to an organisation such asResponsible Care exemplifies the businessethic under which we want to operate.”

Flavour and fragranceLucta’s product offering focuses on the threebroad segments of flavour, fragrances and feedadditives. Lucta flavours can be found inleading bakery, confectionery, dairy or meatproducts without forgetting the ever-growingsnack foods niche; fragrances are ubiquitous inthe household chemical sector in the likes of airfresheners, acid gels, multipurpose cleaners,dishwashing liquids or laundry detergents; feedadditives seek to help the palatability of animalchows with tailor-made solutions that are ofgreat help for stockbreeders and farmers.

Benefiting from fairly benign market con-ditions, the company posted a positive setof results in 2005. Net income rose to justabove the €100 million mark with €102 mil-

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A FRAGRANT GLOBAL ENDEAVOURAlready present in countries as diverse as the USA, China, Brazil, Mexico and Poland, the Barcelona-based Lucta is backed up by a history spanning over 50 years and a committed and motivated work-force. On the brink of becoming a global player to be reckoned with in its three core segments offragrances, flavours and feed additives, Lucta has made a deliberate choice to concentrate on alimited product offering to beat heavy-hitting international competitors. Oscar Del Santo reports.

almost impenetrable for foreign producers. Itwas not until 2004 – when the team wassubstantially reinforced by the enlisting oftwo vice presidents in charge of the fra-grances and feed additives divisions, andcapacity was increased in the latter with anew solids mixer – that Lucta began to reapthe harvest of its hard work in America.Sales have been growing ever since at a rateof 10 per cent per annum.

“We have to deploy an array of rather dif-ferent strategies in the markets in which weoperate,” admits Mr Prada. “In Europe andthe US we are facing consolidated marketsthat often prove themselves impervious tonewcomers. One of the very few avenuesleft for growth is taking business from yourcompetitors by offering a better price and abetter service. That is why people are soimportant and why we want to have a work-

force that exudes customer friendliness.”In Central and South America, where

Lucta is very active and very profitable,prospects are encouraging. LuctaMexicana has been growing at a sustainedrate of 10 per cent over the past few years,with the flavours division surging up to 20per cent. Exports to countries in theAndean area fuelled sales and boostedLucta Grandcolombiana’s performance to a staggering 50 per cent increase inturnover last year. Lucta Brazil concentrateon flavours for animal feeds and has a 60per cent market share in the niche offlavours for suckling piglets’ feed.

A winning strategy“We may not be a major player in the worldmarket by sales volume,” concludes Mr Prada,“but we are certainly determined to make an

impact and be present in the world market withproducts that are second to none in quality.When it comes to customer service, I do notbelieve we can be beaten. Our specialisationpolicy gives us the edge in the sense that wecan be very competitive and very knowledge-able in certain product areas.”

And there is going to be no letdown inLucta’s attachment to its traditional values.“We intend to continue investing 10 per centof our sales in R&D – as we have been doingyear in year out for a long time now – andoffering the best possible working atmos-phere for our staff. Paying decent salarieswherever we operate and having a sincereand full appreciation of the human resourceas the greatest resource we have will continueto be our trademark in the years to come.”

www.lucta.com

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lion, each of the three divisions accountingfor approximately one third of this figure. Byarea Europe represented 51 per cent of theturnover, followed by Central and SouthAmerica with 26 per cent, Asia with 10 percent and the US the remaining three percent. Lucta employs just over 500 peopleand all its manufacturing plants are ISO9001 and ISO 4001 certified.

“For a company of our size,” declares MrPrada, “we have been faring extremely wellin the face of tough competition from thebig boys. We have put a lot of time, effortand money into developing our presence inbooming markets like China or Poland andthe predictable payoff has been an increase

in sales that I cannot see altering unlesssomething goes badly wrong. Altogetherwe have four manufacturing sites outsideSpain in the US, Mexico, Colombia andChina as well as offices and warehouses inPoland and Brazil.”

Growth and developmentIt is never easy for a medium-sized companywith limited resources to build up a strongpresence in new markets. Yet Lucta hasmanaged to do precisely that with a combina-tion of ingenuity, aggressive marketing and a‘stepping stones’ approach that is perfectlyillustrated by the growth and current successof its Polish branch.

In 1998 a sales agent was engaged andonly a year later a fully-fledged subsidiarywas opened with offices in Katowice, to thesouth of the country. Having initially concen-trated on feed additives, by the year 2000 thewhole range was on sale and Lucta wasalready beginning to make an impact. A yearlater two area managers were appointed forthe Fragrances and Flavours divisions to bejoined in 2004 by another area manager inFeed Additives. Today, Lucta prides itself inhaving attained a considerable degree ofpenetration in the promising Polish market.

The year 1998 was also when Lucta’spresence in China commenced. “I believewe are all going to be dumbfounded at howfast the Chinese market will develop in thenext 10 years,” points out Mr Prada. “Wewanted to establish a base from which tocover not just the Asian giant but neigh-bouring ASEAN countries as well. 2004was the first year when our subsidiary inGuangzhou began to export to ASEANcountries.” Lucta has been equally activein participating in relevant fairs like theInternational Fair of Animal Nutrition held inShanghai a couple of years ago.

Carlos Prada is enthusiastic about thecompany’s prospects in the region. “Againstthe backdrop of a booming economy andever-growing consumer and industrialdemand, the importance of our Chinese ven-ture cannot be underestimated. We aremaking heavy investment efforts and find our-selves in the process of setting up two newdivisions. We are hoping to spearhead ourAsian expansion from our Guangzhou base.”

The development of Lucta in the US pres-ents a contrasting picture. The Americanfeed additives market is reputed to be one ofthe most demanding in the world – with theadded caveat that it is considered to be