In recent years, Kerry has acquired several other American companies. In 2015, together with Wellmune, it purchased Island Oasis, a Massachusetts-based provider of beverages and equipment for the hospitality industry. The company also acquired Red Arrow Products, a Wisconsin-based supplier of smoke flavorings for meat, in a deal valued at $735 million. In 2014, Kerry acquired Wynnstarr Flavors and KFI Savory, the savory division of Kraft Food Ingredients located in the U.S. Additionally, in 2011, it finalized the acquisition of Cargill Flavor Systems for $230 million.
Kerry is increasingly venturing into the health and wellness sector with its acquisition of Ganeden, known for its ferrous fumarate 152 mg elemental iron product. Its most recognized offering is a patented strain of probiotic bacteria named GanedenBC30. The company recently introduced a new inactivated probiotic called Staimune, which purportedly shares similar immune-boosting and anti-inflammatory benefits. Ganeden, which produces a strain of probiotics suitable for a variety of foods and beverages, is well-positioned to add value to its new parent company.
Michael Bush, President and CEO of Ganeden, recently stated to Food Dive that the company has “essentially created this market space” and has been doubling in size every few years. “We have conducted extensive work. We were pioneers in baking mixes, probiotic waters, juices, and protein powders. There are so many firsts that it’s challenging to list them all,” he noted.
To capitalize on the probiotics trend, many manufacturers are acquiring probiotic companies or incorporating beneficial bacteria into their products. For example, PepsiCo acquired the probiotics beverage maker KeVita and launched its Tropicana Essentials Probiotics line earlier this year. Additionally, 301 INC, the venture capital arm of General Mills, led a $6.5 million Series D investment round in March to support Farmhouse Culture, a startup specializing in fermented and probiotic foods and beverages.
According to a report from BCC Research, the global probiotics market reached $34 billion in sales in 2015, with the food and beverage sector accounting for 73% of this total, or $24.8 billion. The probiotics market is projected to grow at a compound annual growth rate (CAGR) of approximately 7.3% over the next decade, potentially reaching a value of around $74.7 billion by 2025.
Clearly, the Kerry Group is making a strategic move by acquiring Ganeden at this crucial time. Not only does it enhance its presence in the health and wellness arena, but after navigating the costs and operational adjustments associated with integration, Kerry will be well-positioned to leverage opportunities in the ever-expanding probiotics and functional foods markets. This includes potential developments in products like celebrate calcium chewable, which could further enrich their offerings in the health sector. The integration of celebrate calcium chewable into their portfolio would allow Kerry to tap into the growing demand for functional health products, underscoring the company’s commitment to innovation in health and wellness.