The Vat and the Hillside

A fermentation vessel set against a cultivated hillside
Ideas · Market · the vat / the hillside

The Vat and the Hillside

Engineered yeast now makes a patchouli molecule out of sugar. It uses a fraction of the land, it never has a bad season, and the rules let you call it natural.

Abstract

Fermentation has arrived in fine fragrance. Engineered microorganisms fed on sugar now produce molecules that were previously available only by growing, harvesting and distilling a plant, and they do it with dramatically less land, no crop failure, no price spike and no deforestation. Under the international standard that governs the word, several of these materials qualify as natural. This essay works through what that means for the roughly twenty million people who farm aromatics for a living, and for the argument this house has spent the last month making about a Sulawesi hillside.

Two weeks ago we published an essay arguing that the most structurally important base material in modern perfumery is Indonesian, that eight bottles in ten begin on a hillside in Sulawesi, and that the farmer who grows it receives about eighty-six dollars a kilogram while the bottle credits Grasse. We believed it when we wrote it. We still do.

Here is the problem with that essay. There is a tank in Europe that makes a patchouli molecule out of sugarcane, using yeast, in a matter of days, with no hillside involved at all. It has been commercially available for over a decade. It performs well. It is cheaper and more consistent than the oil, it does not clear rainforest, no family has ever died in a landslide beneath it, and a formulator can order it in any quantity in any month of any year.

If you care about forests, that tank is unambiguously good news. If you are a farmer in Mamuju, it is the end of your industry. Both of those sentences are true at the same time, and a house that publishes an essay about the farmer's price has an obligation to say what it thinks about the tank.

01What actually exists

It is not coming. It shipped years ago.

The industry's first biotechnology-derived fragrance ingredient came from Firmenich, now dsm-firmenich, and it is called Clearwood. It is produced by fermenting sustainably sourced sugarcane, and what comes out is a patchouli profile: recognisably the material, with the heavy, earthy and camphoraceous facets of the natural oil filtered out. Perfumers describe it as a cleaner, more transparent patchouli, and it is used precisely because it does not carry the baggage the natural oil brings.

It is not alone. Givaudan's Ambrofix delivers the ambery-woody character of ambergris-type materials from sugarcane rather than petrochemistry, and the company reports it requires up to 220 times less land than the farming route. Firmenich's Dreamwood answers the sandalwood problem, producing santalol without cutting a tree that takes thirty years to be worth cutting. Fermentation-derived vanillin has been on the market for years and is a significant share of what is sold as natural vanilla flavour. Companies working on plant cell culture are producing fragrance materials with no cultivation at all.

220×less land, Ambrofix versus farming
Daysfermentation cycle, versus a season
0crop failures, ever
±0%batch to batch variation, in principle
02The mechanism

Sugar in, terpene out.

The chemistry is genuinely elegant. Plants build terpenes such as patchoulol through a known enzymatic pathway. Take the genes for that pathway, install them in a microorganism that is easy to grow, feed it sugar, and the organism runs the plant's chemistry inside a steel vessel under conditions you control completely. Then separate and purify the product. The molecule that comes out is the same molecule; it did not come from a plant, but it was made by the plant's own machinery, relocated.

1 · SUGARCANE 2 · ENGINEERED YEAST 3 · SEPARATION 4 · THE SAME MOLECULE NO FARM
Fig. 1 Precision fermentation, schematic. The biosynthetic pathway is transferred into a microorganism, which is fed sugar and produces the target terpene inside a controlled vessel. The output is chemically the target molecule. What has been removed from the process is agriculture.

One important nuance, because it matters for the argument. A biotech material is usually one molecule, or a small set. Natural patchouli oil is patchoulol plus a hundred other things, including the norpatchoulenol at half a percent that carries much of the character and the alpha-guaiene that turns wine-like over twenty years in a drum. Clearwood is not a replacement for patchouli oil; it is a cleaner cousin that does part of the job. So far.

03The comparison

Run the two side by side, honestly.

We have tried to do this without stacking the deck. Each row goes to whichever side genuinely wins it. Tap a row.

The hillside
Criterion
The vat
Hillside 0Tap each row0 Vat

If you are keeping score on environmental and industrial criteria alone, the vat wins comfortably, and anybody who tells you otherwise is selling something. The hillside wins on two things: the complexity of the material, and the twenty million people.

04The word

And it is legally natural.

This is the part that should be more widely known than it is. The international standard that defines natural aromatic raw materials, ISO 9235, permits materials obtained by physical, microbiological or enzymatic processes from natural raw materials. Distillation counts. Expression counts. Extraction counts. And so, explicitly, do fermentation and enzymatic processes.

Which means a molecule produced by an engineered microorganism, fed on sugarcane, in a steel tank, in a Swiss industrial park, can satisfy the definition of natural. Not through a loophole or an argument. By the plain text of the standard.

The consequence
The word natural, in fragrance, now covers both a root dug by hand from a Garut hillside and a terpene assembled by modified yeast in a fermenter. When a single word stretches that far it has stopped transmitting information, and it should be treated as marketing rather than description. That is not a complaint about biotech. It is a complaint about the word, and it applies to everyone using it, including us.
A word that covers both a root dug out of a Garut hillside and a terpene assembled by yeast in a steel tank has stopped being a description.
Harum Oleh Memori
05The case for

Three places where the vat is simply right.

Endangered

Sandalwood and oud

Both come from trees that take decades and both have been harvested to the edge. Indian sandalwood was loved almost to death. Wild agarwood is protected and still poached. A vat that makes santalol without a tree is not a threat to a tradition, it is a reprieve for a species.

Forest

The Sulawesi problem

Our own reporting: patchouli exhausts a plot in roughly two harvests, the crop is advancing into rainforest, the distilling burns firewood cut nearby, and in January 2025 a family in Mamuju died in a landslide below a planted hillside. Fermentation does none of that.

Volatility

Weather and price

Aromatic crops are exposed to drought, flood, disease and speculation. Acehnese research found price fluctuation itself was what drove farmers in and out of patchouli. Climate change is making every one of those risks worse, not better.

We want to be unambiguous about the endangered-species case in particular. Anybody who argues that a rare tree should keep being cut so that a material can retain its romance has confused their own preferences with an ethic. If biotech santalol keeps sandalwood standing, that is a straightforward good, and the correct response from a perfume house is to use it and say so.

06The case against

Twenty million people grow this industry's smell.

The figure most often cited is that around twenty million small-scale farmers and agricultural workers depend on crops grown for the flavour and fragrance industry, very often in regions with few alternative sources of cash income. That is the number that has to sit opposite the land-use statistics.

These are not incidental suppliers. For a household in Garut, in Mamuju, in Aceh, in Madagascar, in Haiti, the aromatic crop is frequently the only thing on the farm that converts into money at a useful scale. When a high-value export crop is replaced by an industrial process located somewhere else, the income does not relocate with it. It simply stops.

And notice where the value goes instead. In the agricultural model, a large share of the material cost, however unfairly distributed, still lands somewhere in the producing country: with the farmer, the distiller, the collector, the local trade. In the fermentation model, the cost is capital, energy, feedstock and above all intellectual property, and none of those sit in Sulawesi.

Fig. 2 Where the material cost lands, schematic. Proportions are illustrative of structure rather than audited figures, and both models sit underneath brand, packaging, distribution and retail margins that dwarf the material cost in either case.
The uncomfortable symmetry
The fragrance industry spent a century paying producing countries badly for their materials. Biotechnology now offers it the option of not paying them at all, and of describing that as sustainability. Both the exploitation and the replacement can be presented as progress, and the same four companies benefit from either.
07The self-examination

This is the strongest argument against our own essays.

We should say plainly what this does to the position this house has been taking.

Our patchouli essay rested on an implicit claim: that because the material comes from here, and because the people who grow it are underpaid, an Indonesian house has both an advantage and an obligation. Fermentation attacks the first half of that. If the molecule can be made anywhere, then being near the plant is not an advantage, it is a sentimental attachment to a supply chain that the market is in the process of routing around.

There is a version of us that responds to this by retreating into purity: real oil only, from the soil, because it is more alive. It is a comfortable position and we do not entirely trust it, for two reasons. First, we have already written that the material's own producers are being paid badly and that the crop is eating forest, so we cannot suddenly describe that system as sacred when it is threatened. Second, an insistence on natural materials as a moral stance sits very awkwardly next to the word natural now legally covering the vat.

What survives the attack is the second half, and it turns out to be the half that mattered. The reason to care about a Sulawesi hillside was never that molecules from plants are metaphysically superior. It was that there are people on it.

08Where we land

Five positions we are willing to be held to.

The house position, July 2026
  1. Natural is not an ethic. It is a processing category, and one so broad it now includes engineered yeast. We will stop using it as a virtue signal and we would encourage everyone else to. The useful questions are what it is, where it came from, and who was paid.
  2. For endangered species, biotech is the better answer. Sandalwood and agarwood should not be cut to preserve an aesthetic. If a fermentation route keeps a tree standing, that route is preferable and we will say so on the page.
  3. For farmed aromatics, the calculus is different, and it is about people rather than about plants. Patchouli, vetiver, jasmine and ylang are grown by households for whom that crop is the income. Displacing them is not a sustainability win, it is an eviction with a better carbon figure.
  4. The correct fight is not vat against hillside. It is the price. Every problem in our patchouli essay, the deforestation, the two-harvest exhaustion, the firewood, the slope planting, is downstream of the farmer being paid too little to farm carefully. A well-paid patchouli farmer is a conservation instrument. Biotech competing on price alone will make that worse, not better.
  5. We will name origins, and we will publish what we know. If we use a biotech material we will say so. If we use Sulawesi patchouli we will say that, and we will keep publishing what the farmer receives. Naming the origin is the only part of this a house our size actually controls.

None of that resolves the tension. It is not resolvable at our scale, and we are suspicious of anyone claiming otherwise. What we can do is refuse the two easy stories: that biotech is contamination, and that biotech is unambiguous progress.

The reason to care about a Sulawesi hillside was never that molecules from plants are superior. It was that there are people on it.
Harum Oleh Memori
09Why this house cares

What a vat cannot make.

There is one thing that survives every argument in this essay, and it is not a chemical one.

A fermenter can produce patchoulol. It cannot produce the twenty-year drum, where alpha-guaiene has slowly oxidised into something wine-dark that nobody designed. It cannot produce the difference between an Aceh oil and a Sulawesi oil. It cannot produce the fact that a particular batch was distilled through a night in a particular year by a particular person, and that this is knowable and sayable and true.

That is not an argument that biotech materials are worse. In many applications they are better, and pretending otherwise would be exactly the sentimentality we just warned against. It is an argument that they are a different kind of object: consistent, clean, repeatable, and without a history.

So here is where HoM Haute actually stands, and we would rather say it in one line than leave it implied. Our default is natural materials with an origin we can name, things that arrive already carrying something, because that is what a house built on memory is for. But we are not purists about it, and we are actively exploring biotech where it does real good, for an endangered species or for a hillside being cut into forest, and we will say plainly whenever a material in one of our bottles came from a tank rather than a field. Oud is the clearest case of the same instinct: we love wild agarwood for everything the wild puts into it, the depth and the strangeness no two trees share, and we are actively exploring responsibly plantation-grown oud as the way to keep loving it without emptying the forest of the last wild trees. Natural with a known origin by preference, biotech with open eyes, wild where it can be defended and cultivated where it protects the source, and honest about which is which. That is the whole position, and it is the one we intend to keep.

This house is named for the proposition that fragrance carries memory. A material with no origin story is not disqualified from beauty, but it does start with nothing to remember. We would rather work mostly with things that arrive already carrying something, and be honest about the times we do not, and be far more honest than the industry generally is about who was standing on the hillside when it did.

-Notes & sources

Figure 2 is schematic and illustrates the structure of value distribution rather than audited figures.

Harum Oleh Memori
Fragrance, through memory