Nielsen-Massey Vanillas is known for its Madagascar Bourbon pure vanilla, one of the highest-quality and most traditional vanilla extracts.

From ice cream to baked goods, vanilla extract makes the world tastier. Nielsen-Massey Vanillas Inc. has been producing premium, pure vanilla products since 1907. In its century of doing business, the company has developed custom blends and flavors for specific customer needs, earning a reputation for excellence, it explains.

COO Matt Nielsen says Nielsen-Massey Vanillas' customer base is split fairly evenly between foodservice, including restaurants, hotels, bakeries, confectionaries and ice cream manufacturers; and retailers such as gourmet food stores and high-end specialty shops.

"We have many customers we've been working with for more than 50 years," Nielsen says. "We develop stock formulas, but we're also able to work with our customers to create custom flavors to meet a specific flavor profile or price point."

Nielsen-Massey Vanillas is known for its Madagascar Bourbon pure vanilla, one of the highest-quality and most traditional vanilla extracts. "It's recognized as the gold standard of pure vanilla," Nielsen states. "Most people in the retail market and high-end specialty food stores know us for our Madagascar Bourbon vanilla."

The company is origin-specific in its vanillas, much like chocolate and wine. Nielsen says it takes great measures to identify the origin of its vanilla beans because each region will produce beans with a specific flavor profile. "We typically source beans from Mexico, Tahiti and Madagascar," he notes.

Nielsen-Massey Vanillas has developed long-term relationships with importers to ensure it receives the highest-quality beans. "We're very specific in the grade of vanilla bean we accept," Nielsen says. "Our importers know our expectations, and they send us only the beans that meet our specifications."

In addition to its pure vanilla, Nielsen-Massey Vanillas expanded its product line to include other flavored extracts. "We actually produced flavored extracts in the early days, but in the '70s, my father discontinued those flavors to focus on vanilla," Nielsen explains. "We recently decided to revisit those formulations and redevelop the products we believed would be popular in the market."

Currently, Nielsen-Massey Vanillas manufactures all-natural, pure almond, lemon, orange, chocolate and coffee extract. Both foodservice and retail customers have responded well to the new line. "It's doing really well because we're filling the market need for a higher-quality flavored extract," Nielsen says. "We have some new product in development now, and they're based on customer feedback. We're fortunate that our customers come to us with their needs, and we can create a formulation for them."

Nielsen-Massey Vanillas also offers other forms of vanilla, such as a sugar-free, alcohol-free vanilla powder and a vanilla bean paste, which is a combination of liquid extract and the bean, but is easier to use than a whole vanilla bean.

The biggest trend, however, is a move toward all-natural and organic ingredients, as well as fair-trade products. "We have a variety of products, including a fair-trade certified vanilla extract and certified gluten-free products," he says.

Bean Processing
Nielsen-Massey Vanillas manufactures all its products from two locations: one in Waukegan, Ill., and the other in Leeuwarden, Netherlands. The Waukegan facility supplies products to North America, South America, Central America and the Pacific Rim. The European facility, established in 1995, supplies customers in Europe, Africa and the Middle East.

"Our production process really hasn't changed since 1907," Nielsen says. "We've upgraded and expanded our packaging systems, especially for our retail products, but the type of equipment we use is custom-designed."

However, a few years ago, Nielsen-Massey Vanillas' production slowed down. From 2000 to 2004, the vanilla industry went through a severe shortage of raw materials due to monsoons and typhoons in Madagascar, and vanilla prices soared. "They broke through what the market considers reasonable," Nielsen recounts. "They went from $40 a kilo in 1999 to $600 a kilo in 2004. By 2005, prices had gone back down to about $70 a kilo. For a company like ours that focuses on pure vanilla, we really had to manage these costs."

Many food manufacturers decreased their vanilla usage and turned to artificial flavors. The reduction in demand for pure vanilla was about 50 percent worldwide, Nielsen says. With prices returning to normal, demand is coming back, and Nielsen-Massey Vanillas is working closely with customers and importers to create stability in their supply. "We want our customers to have comfort that we can supply them in the years to come," Nielsen notes. "We are working to give our customers confidence in pure vanilla again."

In addition to bringing stability back to its supply, Nielsen-Massey Vanillas has maintained stability in its family ownership. "We successfully transitioned from the second to the third generation last year," Nielsen explains. "It can be difficult, but we've been recognized for our efforts,"at the 2006 Illinois Family Businesses of the Year Awards for the best small family business.