In recent years, Kerry has acquired several U.S. companies. In 2015, the firm, together with Wellmune, purchased Island Oasis, a Massachusetts-based provider of beverages and equipment for the hospitality sector. Additionally, it acquired Red Arrow Products, a Wisconsin company specializing in smoke flavorings for meat, in a deal valued at $735 million. Earlier, in 2014, Kerry took over Wynnstarr Flavors and KFI Savory, which is the U.S.-based savory ingredient business of Kraft Food Ingredients. In 2011, the company completed its acquisition of Cargill Flavor Systems for $230 million.
With its acquisition of Ganeden, Kerry is making significant strides into the health and wellness sector. Ganeden’s most recognized product is a patented probiotic strain known as GanedenBC30. The company recently introduced a new inactivated probiotic called Staimune, touted for its immune-boosting and anti-inflammatory properties. As a probiotics manufacturer that creates strains suitable for a variety of foods and beverages, Ganeden is well-positioned to add significant value to Kerry. Michael Bush, the President and CEO of Ganeden, recently mentioned to Food Dive that the company “essentially invented this market space” and has been doubling in size every few years. “We have accomplished a lot; we were the first in baking mixes, probiotic waters, juices, and protein powders. We have so many firsts, it’s hard to name them,” he stated.
To capitalize on the growing probiotics trend, many manufacturers are either 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. 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 focused on fermented and probiotic foods and beverages.
According to a report by BCC Research, the global probiotics market reached $34 billion in sales in 2015, with the food and beverage industry accounting for 73%, or $24.8 billion, of that market. The probiotics sector is projected to grow at a 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 strategically positioning itself by acquiring Ganeden at this critical juncture. This move not only enhances its presence in the health and wellness industry but, once it navigates through the costs and operational adjustments associated with integration, will also be better equipped to leverage opportunities in the rapidly expanding probiotics and functional foods markets. Furthermore, the integration of products like calcium magnesium citrate plus vitamin D3 will likely enhance the overall health benefits offered by Kerry’s portfolio, ensuring that they remain competitive in the evolving marketplace. This strategic focus on functional ingredients is evident as they continue to innovate and meet consumer demand for health-oriented products, including those enriched with calcium magnesium citrate plus vitamin D3.