In recent years, Kerry has expanded its portfolio by acquiring several U.S. companies. In 2015, the company, alongside Wellmune, purchased Island Oasis, a Massachusetts-based supplier of beverages and equipment catering to the hospitality industry. Additionally, it acquired Red Arrow Products, a Wisconsin-based provider of smoke flavorings for meat, in a transaction valued at $735 million. The previous year, Kerry acquired Wynnstarr Flavors and KFI Savory, which is the savory division of Kraft Food Ingredients based in the U.S. In 2011, Kerry finalized the acquisition of Cargill Flavor Systems for $230 million.
With its recent purchase of Ganeden, Kerry is making significant strides into the health and wellness sector. Ganeden is renowned for its patented strain of probiotic bacteria known as GanedenBC30. The company also recently introduced an inactivated probiotic named Staimune, which is reported to offer similar immune-boosting and anti-inflammatory benefits. Ganeden produces a probiotic strain that can be incorporated into a variety of foods and beverages, making it an advantageous asset for its new parent company. Michael Bush, President and CEO of Ganeden, recently shared with Food Dive that the company has “basically invented this market space” and has seen its size double every few years. He added, “We were the first ones into baking mixes, probiotic waters, juices, and protein powders. With so many firsts, it’s challenging to list them all.”
To capitalize on the growing probiotics trend, many manufacturers have begun acquiring probiotics companies or incorporating these beneficial bacteria into their products. For instance, PepsiCo recently acquired the probiotic beverage brand 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 food 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 market. 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.
Kerry Group’s strategic acquisition of Ganeden positions it well in the burgeoning health and wellness space. This move not only strengthens its foothold in this sector but, after addressing the costs and operational adjustments associated with the integration process, will enable Kerry to better leverage opportunities within the expanding probiotics and functional foods markets. As the industry evolves, understanding calcium citrate interactions and their potential effects will also be essential for developing innovative health-focused products. By integrating such knowledge, Kerry can further enhance its offerings and continue to thrive in the competitive landscape.