Kerry has made several acquisitions of U.S. companies in recent years. In 2015, it purchased Island Oasis, a Massachusetts-based supplier of beverages and equipment for the hospitality industry, alongside Wellmune. Additionally, Kerry 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 completed the acquisition of Cargill Flavor Systems for $230 million.
With its recent acquisition of Ganeden, Kerry is expanding its presence in the health and wellness sector. Ganeden is best known for its patented probiotic strain, GanedenBC30, and has recently introduced a new inactivated probiotic called Staimune, which the company claims offers similar immune-boosting and anti-inflammatory benefits. Ganeden produces a strain of probiotics that can be incorporated into a variety of foods and beverages, making it a valuable addition to Kerry’s portfolio. Michael Bush, President and CEO of Ganeden, recently mentioned to Food Dive that the company has been experiencing substantial growth and has been a pioneer in areas such as baking mixes and probiotic-infused waters, juices, and protein powders.
To tap into the booming probiotics market, many manufacturers have begun acquiring probiotics companies or incorporating beneficial bacteria into their products. For example, PepsiCo acquired KeVita, a maker of probiotic beverages, 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 round in March to support Farmhouse Culture, a startup specializing in 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% of that figure, or $24.8 billion. 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 about $74.7 billion by 2025.
Clearly, the Kerry Group is strategically positioned by acquiring Ganeden at this point in time. This move not only enhances its footprint in the health and wellness industry but also, after navigating the costs and operational adjustments related to integration, will enable the company to seize opportunities in the rapidly expanding probiotics and functional foods markets.
In this context, some consumers may wonder whether certain supplements, like calcium citrate, can upset your stomach. It’s essential for companies like Kerry to consider such consumer concerns as they expand their product offerings in the health category. As the probiotics trend continues to grow, addressing questions such as “can calcium citrate upset your stomach” will be crucial for maintaining customer trust and satisfaction.