Last Friday, Treatt hosted its first ever CMD to showcase the new UK site. Having visited the old site too, we can validate the significant upgrade the group has achieved with this c£40m (net) investment. It is the final piece in the transformation of Treatt from “analogue to digital”. However, outshining the facility, in our view, was the quality of the people we met below board level. This is likely the reason why Treatt has punched above its weight in the flavours industry and has succeeded, regardless of its previous “outdated” facility. With this workforce, all of which were tangibly excited to be in the new HQ, and the new site, which brings everyone together under one roof (from 6 separate buildings) as well as showcasing the science led nature of the business, Treatt looks set to continue on its growth trajectory. There will be operational benefits from the new site (lower waste, less downtime from cleaning, and faster processing) which can be measured, but the impact on the top line from a more collaborative environment and greater interaction/leverage with customers is harder to estimate. However, the facility is definitely fit for the future and provides ample capacity to continue to grow. This site can ultimately treble production. The group is committed to increasing its R&D spend from the current 2% to closer to c 5% (industry average) over the next 5 years. Some of this will be “blue sky” R&D but some will be directed at developing new emerging products/sectors, such as premium cold brew coffee. There was no further comment on current trading – but in the recent 1H results the group confirmed its confidence in the full year outlook, despite the quieter 1H. With a 25% increase in the order book, the group has good visibility over the mix and scale of business expected in 2H.