Strategy and Business Model

Business Model

Brenntag’s growth opportunities along with its resilient business model are based on complete geographic coverage, a wide product portfolio and a comprehensive offering of value-added services as well as high diversity across suppliers, customers and industries.
Connecting chemical manufacturers (our suppliers) and chemical users (our customers), Brenntag provides complete distribution solutions rather than just chemical products. Brenntag purchases large-scale quantities of industrial and specialty chemicals and ingredients from a large number of suppliers, enabling the company to achieve economies of scale and offer a full-line range of products and value-added services. Brenntag is the strategic partner and service provider for manufacturers of industrial and specialty chemicals and ingredients at the one end and chemical and ingredients users at the other end of the value chain. Brenntag stores the products it purchases in its distribution facilities, packs them into quantities the customers require and delivers them, typically in less-than-truckloads. Overall, Brenntag offers a broad product range comprising more than 20,000 chemicals and ingredients as well as extensive value-added services such as just-in-time delivery, product mixing, blending, repackaging, inventory management, drum return handling. Among other things, Brenntag also offers tailor-made application, marketing and supply chain solutions, technical and formulation support, comprehensive regulatory know-how and digital solutions such as digital sales channels and product platforms.
To enable us to best respond to its customers’ and suppliers’ diverse and changing requirements, Brenntag manages its business through two global segments: Brenntag Essentials and Brenntag Specialties.
As an agile, lean and efficient distribution partner at local level, Brenntag Essentials markets a broad portfolio of process chemicals across a wide range of industries and applications. In this segment, we benefit in particular from our local market knowledge and our reach. This allows us to make targeted use of our economies of scale.
Brenntag Specialties is geared to expanding our market position as the leading supplier of specialty chemicals in six selected focus industries worldwide: Nutrition, Pharma, Personal Care/HI&I (Home, Industrial & Institutional), Material Science (Coatings & Constructions, Polymers, Rubber), Water Treatment and Lubricants. These focus industries are large, globally relevant sectors that offer significant potential for end-to-end solutions as well as our excellent technical and application-related expertise and are subject to high regulatory requirements.
In this operational set-up, we aim to serve our business partners faster, better and more comprehensively by concentrating even more closely on their changed requirements. Under the Brenntag umbrella, both segments work equally towards strengthening and expanding our position as global market leader in the distribution of industrial and specialty chemicals.
Brenntag is the global market leader in chemical and ingredients distribution. We define market leader not just by business volume but also associate it with our philosophy of continually improving the safety standards at our sites. As a responsible service provider, we continually strive to achieve further improvements in the supply chain as a whole.

Strategy

Our goal is to further strengthen and expand our position as global market leader in an agilely changing global market environment and lead our industry as the preferred partner for customers and suppliers.
We strive to extend our market leadership through sustainable organic growth and by continuously and systematically increasing profitability.
Brenntag works systematically to drive the execution of its “Strategy to Win” with its four pillars presented in November 2022. Firstly, the core elements comprise the differentiated strategies for the two divisions Brenntag Specialties and Brenntag Essentials. Secondly, in addition to the dedicated strategies, Brenntag is pursuing a sustainability agenda with the aim of assuming a leading role in the responsible distribution of sustainable chemicals and ingredients. Thirdly, Brenntag aims to drive market consolidation through value-creating M&A activity. Its focus here is on expanding its position in emerging markets in both divisions, improving strategic capabilities and market positions, adding to the existing portfolio and improving technical capabilities. Fourthly, it is transforming itself into a data- and technology driven company.