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Eurofragance: Tapping Into the Halal Market
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Reference: SM-1575-E
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Year: 2011
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Number of pages: 19
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Geographic Setting: España, Indonesia, Malasia
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Publication Date: Oct 20, 2011
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Source: IESE (España)
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Type of Document: Case
Description
Eurofragance is a family-owned company specializing in fragrances and flavors for perfumery, personal hygiene and food. About 80% of its production is exported, reaching customers in over 40 countries and leading to the opening of subsidiaries in seven emerging markets. This case study focuses on the flavors division. At the start of its activity in Indonesia and Malaysia, the company met with strict regulations on product certification requirements in relation to Islamic law regarding food: that is, making sure that products did not contain any food considered forbidden (haram) under the Islamic religion. From there, the case study describes the so-called "halal market" in different regions of the world and the operations of entities that certify the validity of "halal" products. This case study aims to open up a discussion of the strategic dilemma that Eurofragance faces regarding these markets and certification entities.