The ratings on International Flavors&Fragrances Inc. (IFF) reflect the company's position as a leading global creator and manufacturer of flavors and fragrances and its geographic diversity, with almost 70% of revenues and more than 75% of operating profits generated outside North America. These factors are partially offset by IFF's lackluster sales growth as it operates in a highly competitive environment. The company is also subject to ongoing litigation relating to the use and handling of one of its products by the employees of customers at plants in Missouri and Ohio. The company has achieved a leadership position within the industry through its R&D investment (which is about 8% of revenue). R&D expertise is a significant barrier to entry
