Harnessing knowledge

Keeping up with a rapidly evolving industry, Borgwaldt establishes its Vapor Competence Center.

By Stephanie Banfield

Founded in 1867, the Borgwaldt Group has spent nearly 150 years becoming a primary player in the research, development and production of flavorings for the tobacco industry. In addition to flavorings, the company is also well-known as a leading vendor for quality-control devices and machines used by the tobacco industry and its subsuppliers. Following its acquisition by Hauni Maschinenbau in August 2013, Borgwaldt Group, which consists of Borgwaldt Flavor and Borgwaldt KC, recognized the opportunities presented by the ever-evolving vapor industry, and before year’s end the Borgwaldt Vapor Competence Center was born.

“We decided to establish the Vapor Competence Center at the end of 2013, when we realized that all units are involved in the vapor business, even when in different segments,” says Thomas Schmidt, director of scientific and technical affairs. “The positive experience was in the beginning—and still is—that it was very beneficial to have competent discussion partners within our own company to reflect specific technical aspects. We wanted to give this advantage to our customers to support them in all fields of their activities.”

Located at Borgwaldt’s headquarters in Hamburg, Germany, the Vapor Competence Center brings together the entire Hauni network’s knowledge and experience with instrument technology, flavor development and analysis. Experts from the Borgwaldt Group’s subsidiaries, Borgwaldt Flavor and Borgwaldt KC, have teamed up to develop innovative technologies and processes and to provide specific solutions to customers within the vapor industry.

“We are working in a team of in-house experts from our three units Borgwaldt KC GmbH, the manufacturer of QA/QC [quality-assurance and quality-control] instruments; Borgwaldt Flavor GmbH as provider of flavor solutions for the vapor industry; and finally ASL, our analytical service laboratory with the expertise in analytical testing of e-liquids and aerosols,” says Schmidt. “All the units are active in their field of expertise, which means developing instruments, creating flavors and aromas, and developing analytical test methods. The information exchange within the Vapor Competence Center during the process is our driver to enhance our service, products and solutions. In addition, we are working actively in international standardization work groups to ensure that our service and products are always state-of-the-art.”

In addition to having access to the expertise of both Borgwaldt subsidiaries, customers who come to the Vapor Competence Center for customized solutions will also benefit from having access to the know-how of the industry professionals employed by Hauni.

“Like the Vapor Competence Center as melting pot for all Borgwaldt expertise, the professionals of the Vapor Competence Center can connect to Hauni’s big source of know-how, which can be pulled together on project basis,” says Schmidt. “If a customer needs advice for manufacturing or design, Borgwaldt can rely on the experts from Hauni machine development or primary equipment.”

With more than a century of success in the tobacco industry, diving into the vapor industry was a logical next step for Borgwaldt.

“Coming from the cigarette flavor, analytics and instruments business, we applied our knowledge on the vapor industry,” says Schmidt. “Concerning flavors and liquids, we think that this gives us the needed edge to transfer smokers’ expectations in terms of taste and impact also to the new field of e-cigarettes. Adapted instruments for the vapor industry help our customer to apply and check new regulations and quality data.”

Although some in the vapor industry are under the impression that Borgwaldt’s Vapor Competence Center manufactures specific products, Schmidt stresses that this is merely a misconception.

“The Vapor Competence Center does not produce an instrument or a flavor concentrate,” he says. “Production or service is still provided by the related Borgwaldt units. The Vapor Competence Center coordinates activities and gives the strategic direction to the operating units. The main task is to support and consult our customers to work out the perfect solution for them. Some customers [might believe] the VCC is an independent member of the Borgwaldt Group, but that is not the case. The Vapor Competence Center is simply a business unit within the group.”

And while many of Borgwaldt’s employees are tasked with performing duties for the vapor side of the business, the work is not performed in a separate facility with a focus specifically on vapor solutions.

“Don’t understand our VCC as an independent unit in its own walls,” he says. “In fact, it is a dedicated joint-working unit which uses the whole facility in Hamburg. Depending on the face task, more or fewer colleagues are involved and active. Our whole service laboratory team is currently heavily involved in e-product testing, and due to the wide variability of e-products, our engineers and flavor experts are constantly delivering ideas and potential solutions to support our customers, especially regarding the required product registration within the European Union.”

Like many companies operating in the vapor industry today, recent changes in rules and regulations have posed challenges and concerns for Borgwaldt and its operations at the Vapor Competence Center.

“Vapor products are more and more in focus of regulatory authorities,” says Schmidt. “Different regulations and product requirements—e.g., the European Union’s latest tobacco directive, which covers also vapor products—are interpreted different in diverse member states, necessitating individual solutions. However, there is often a lack of understanding and a huge portion of uncertainty on our customer’s side.”

Despite the challenges that potentially lie ahead for the company with regard to regulations, Schmidt is determined not to let such hurdles overshadow the achievements that have been made so far—particularly the introduction of a brand-new product of which the company is particularly proud.

“We have successfully developed and launched test equipment to the market—e.g., the introduction of our LM4E, a four-channel aerosol collection unit,” says Schmidt. “The feedback of our customers is quite positive. In the same way we can evaluate the service laboratory activities positive. We have satisfied customers getting the needed results reported right on time. Also development and sale figures show us that the flavor business in that area is working well.”

With decades of experience in flavor development, analysis and quality control, Borgwaldt is well-positioned to develop unique and innovative solutions for the vapor industry—and according to Schmidt, the Vapor Competence Center’s ultimate goal is simple: “We want to become the market leader related to vapor quality testing, analysis and taste.”