Flavoring Extracts and Flavoring Syrups Manufacturing flavoring extracts, syrups, powders, and related products, not elsewhere classified. The products are generally used at soda fountains or during the manufacture of soft drinks, as well as for adding color to baked products and confectioneries. While most foods have some flavor, certain agents can enhance the taste of these foods. These products encompass a wide range of materials that can be used alone or mixed into a blend. Flavorings and syrups saw steady growth throughout the last two decades. Flavoring manufacturers, sometimes called "flavor houses," create extracts, syrups, powders, and other forms of flavoring materials. These manufacturers work with natural base ingredients purchased from suppliers throughout the world. The manufacturers' dependence on natural sources leaves the flavor chemicals open to price fluctuation due to the availability and cost of the raw materials. Once processed, flavoring ingredients are sold to soft drink companies and other makers of processed foods. Flavor manufacturers and food producers cooperate increasingly in research and development efforts to create new food products. Flavor producers also provide technical support on flavor issues, especially with the beverage industry. Flavor houses custom tailor flavors, relying heavily on work in application laboratories. Flavor companies and product developers work in conjunction with flavor chemists to achieve desired results. Bottling of Water and Software Drinks Bottled water is drinking water packaged in plastic or glass containers. The dominant form is water packaged in new Polyethylene terephthalate bottles. Syrups and bases are combined with water in soft drink bottling. Sweeteners and/or carbonated water to produce the final product. Independent bottlers work under contract with various soft drink manufacturers and are allotted specific territories to serve. The manufacturers provide the bottlers with syrups and bases and with a variety of business services, including product quality control, marketing, advertising, engineering, and financial and personnel training. Distribution and Wholesale A distributor is any person who engages in the sale of beverages in beverage containers to a dealer in California, including any manufacturer who engages in these sales. Distributor also includes any person who imports beverages from outside of California for sale to dealers or consumers in California. Grocery wholesalers and distributors buy grocery items from manufacturers or other distributors and typically resell them to retail—including grocery and convenience stores—or other commercial enterprises—including food service establishments—that in turn sell the goods to users. Grocery wholesalers and distributors buy grocery items from manufacturers or other distributors and typically resell them to retail—including grocery and convenience stores—or other commercial enterprises—including food service establishments—that in turn sell the goods to users. The wholesaling industry also includes many firms that import foreign goods or export U.S. products. In practice, many wholesalers are integrated with manufacturing and retailing of grocery products as well. Retail Like all retail industries, the grocery industry at its most basic, functioned by obtaining goods from distributors and manufacturers, marking up the price to cover costs and to allow for profit, and reselling the merchandise to the public. Larger grocery chains typically manufactured or prepared a limited line of goods for exclusive sale in their stores. These goods included those prepackaged under a private label or store brand and those offered ready-to-eat through in-house bakeries and delicatessens. Also included in the food industry are convenience stores, and specialty food stores.
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