In recent years, Kerry has made several acquisitions of U.S. companies. In 2015, alongside Wellmune, the firm purchased Island Oasis, a Massachusetts-based provider of beverages and equipment for the hospitality industry. Additionally, it acquired Red Arrow Products, a Wisconsin-based supplier of smoke flavorings for meat, in a deal valued at $735 million. Earlier, in 2014, Kerry took over Wynnstarr Flavors and KFI Savory, the savory division of Kraft Food Ingredients. In 2011, the company completed the acquisition of Cargill Flavor Systems for $230 million.
Kerry is increasingly entering the health and wellness sector with its recent purchase of Ganeden. The company’s most recognized product is a patented strain of probiotic bacteria known as GanedenBC30. Recently, it unveiled a new inactivated probiotic named Staimune, which the company claims offers similar immune-boosting and anti-inflammatory properties. Ganeden, which produces a strain that can be incorporated into various food and beverage products, is well-positioned to enhance its new parent company’s offerings. Michael Bush, President and CEO of Ganeden, recently mentioned to Food Dive that the firm “essentially invented this market space” and has been doubling its size every few years.
“We have done extensive work. We were the pioneers in baking mixes, probiotic waters, juices, and protein powders. We have achieved so many milestones that it’s challenging to list them all,” he stated. To capitalize on the growing demand for probiotics, manufacturers are increasingly acquiring probiotic companies or integrating beneficial bacteria into their products. For instance, PepsiCo purchased the probiotics beverage maker KeVita and recently launched its Tropicana Essentials Probiotics line. Furthermore, 301 INC, the venture capital arm of General Mills, led a $6.5 million Series D investment in March to support Farmhouse Culture, a startup focused on 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%, or $24.8 billion, of that figure. 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. This acquisition not only strengthens its position in the health and wellness space but also positions the company to leverage opportunities in the expanding probiotics and functional foods markets after navigating the costs and operational adjustments associated with the integration. Moreover, as the demand for health-oriented products rises, the market for supplements like amazon calcium citrate 500 mg is also likely to benefit from this trend, illustrating the interconnectedness of health-focused initiatives in today’s consumer landscape.