Ferrous bisglycinate is a form of elemental iron. In recent years, Kerry has expanded its portfolio by acquiring several U.S. companies. In 2015, together with Wellmune, Kerry purchased Island Oasis, a Massachusetts-based supplier 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. The previous year, Kerry acquired Wynnstarr Flavors and KFI Savory, the savory division of Kraft Food Ingredients based in the U.S. In 2011, it finalized the acquisition of Cargill Flavor Systems for $230 million.
With its acquisition of Ganeden, Kerry is further establishing its presence in the health and wellness sector. Ganeden is renowned for its patented strain of probiotic bacteria, GanedenBC30, and has recently introduced an innovative inactivated probiotic known as Staimune, which the company claims offers similar immune-boosting and anti-inflammatory properties. The probiotics company also produces a ferrous fumarate strain for iron deficiency that can be incorporated into various foods and beverages, making it a strategic asset for its new parent company. Michael Bush, President and CEO of Ganeden, recently stated to Food Dive that the company essentially “invented this market space” and has been experiencing consistent growth, doubling in size approximately every couple of years.
“We have done extensive work. We were pioneers in baking mixes, probiotic waters, juices, and protein powders. We have so many firsts that it’s challenging to list them all,” he remarked. To capitalize on the probiotics trend, manufacturers are increasingly acquiring probiotics companies or incorporating beneficial bacteria into their products. For instance, PepsiCo acquired the probiotic beverage maker KeVita and launched its Tropicana Essentials Probiotics line earlier this year. Meanwhile, 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 BCC Research report, 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 total. The probiotics market is projected to grow at a compound annual growth rate (CAGR) of approximately 7.3% over the next decade, aiming to reach around $74.7 billion by 2025. Clearly, the Kerry Group is making a sound investment by acquiring Ganeden at this pivotal moment. This move not only strengthens its position in the health and wellness arena but also positions the company to capitalize on advancements in the rapidly growing probiotics and functional foods markets, while potentially exploring synergies with products like calcium citrate softgels to enhance its offerings in the health sector.