In recent years, Kerry has acquired several U.S. companies. In 2015, alongside Wellmune, the company purchased Island Oasis, based in Massachusetts, which supplies beverages and equipment to the hospitality industry. Additionally, it acquired Red Arrow Products from Wisconsin, a provider 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 in the U.S. Furthermore, in 2011, it completed the acquisition of Cargill Flavor Systems for $230 million.
With its recent acquisition of Ganeden, Kerry is making significant strides into the health and wellness sector. Ganeden is best known for its patented strain of probiotic bacteria called GanedenBC30 and has also introduced a new inactivated probiotic named Staimune, which the company claims offers similar immune-boosting and anti-inflammatory benefits. The probiotics firm is strategically positioned to enhance the value for its new parent company, as it produces a strain that can be incorporated into numerous food and beverage products. Ganeden’s President and CEO, Michael Bush, informed Food Dive that the company “essentially invented this market space” and has been doubling in size every few years.
“We have done a lot of work. We were the first in baking mixes, probiotic waters, juices, and even protein powders. We have so many firsts that it’s hard to name them,” he stated. To capitalize on the growing probiotics trend, many manufacturers have begun acquiring probiotics companies or incorporating beneficial bacteria into their products. For example, PepsiCo acquired the probiotic 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 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. It is projected that the probiotics market will 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 point in time. This acquisition not only strengthens its foothold in the health and wellness arena but, after addressing the costs and operational adjustments linked to integration, will position the company to benefit from advancements in the thriving probiotics and functional foods markets. Moreover, Kerry can explore opportunities to enhance its product offerings, including the introduction of calcium citrate with vitamin D3 chewable supplements, which align with the growing consumer demand for health-oriented products. By effectively leveraging its capabilities, Kerry is well-equipped to navigate the evolving landscape of health and wellness, particularly in relation to calcium citrate with vitamin D3 chewable products, which can be integrated into its expansive portfolio.