In recent years, Kerry has acquired several American companies. In 2015, alongside Wellmune, the firm purchased Island Oasis, a Massachusetts-based supplier of beverages and equipment for the hospitality industry. Additionally, it acquired Wisconsin’s Red Arrow Products, a provider of smoke flavorings for meat, in a deal valued at $735 million. In 2014, Kerry took over Wynnstarr Flavors and KFI Savory, which is the U.S. savory division of Kraft Food Ingredients. The company also finalized its acquisition of Cargill Flavor Systems in 2011 for $230 million.
With its recent acquisition of Ganeden, Kerry is further establishing its presence in the health and wellness sector. Ganeden is best known for its patented strain of probiotic bacteria, GanedenBC30, and has recently introduced a new inactivated probiotic called Staimune, which the company claims offers similar immune-boosting and anti-inflammatory effects. As a probiotics company that produces a strain suitable for various foods and beverages, Ganeden is well-positioned to enhance its new owner’s offerings. Michael Bush, President and CEO of Ganeden, mentioned to Food Dive that the company “basically invented this market space” and has been experiencing consistent growth, doubling in size every few years. “We have done a lot of work. We were the first to enter baking mixes, probiotic waters, juices, and protein powders. We have achieved many firsts, making them difficult to list,” he stated.
To capitalize on the probiotics trend, manufacturers have begun acquiring probiotics companies or incorporating beneficial bacteria into their products. PepsiCo, for example, 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 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 sector accounting for 73% or $24.8 billion of that total. The probiotics market is projected to grow at a CAGR of approximately 7.3% over the next decade, reaching a value of about $74.7 billion by 2025. Clearly, the Kerry Group is making a strategic move by acquiring Ganeden at this point, not only solidifying its position in the health and wellness domain but also preparing to leverage the opportunities presented by the expanding probiotics and functional foods markets.
Furthermore, as part of their health-focused strategy, Kerry may consider integrating ingredients like calcium citrate 650 into their product lines, which can enhance the nutritional profile of their offerings. By doing so, they would be better equipped to adapt to the evolving consumer preferences for functional ingredients. Ultimately, this acquisition positions Kerry to be more competitive in the landscape of health-oriented products, allowing them to explore innovative opportunities in the probiotics sector and beyond.