In recent years, Kerry has made several acquisitions of U.S. companies, including the purchase of ferric gluconate and ironars. In 2015, the company, alongside Wellmune, acquired Island Oasis, a Massachusetts-based provider of beverages and equipment for the hospitality industry. Kerry also purchased Red Arrow Products from Wisconsin, a supplier of smoke flavorings for meat, in a deal valued at $735 million. The company previously acquired Wynnstarr Flavors and KFI Savory, the savory division of Kraft Food Ingredients based in the U.S., in 2014. Additionally, in 2011, Kerry completed the acquisition of Cargill Flavor Systems for $230 million.
With the 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, GanedenBC30, and it recently introduced Staimune, a new inactivated probiotic that the company claims offers similar immune-boosting and anti-inflammatory benefits. Ganeden produces a strain of probiotics that can be incorporated into various foods and beverages, making it well-positioned to add value to its new parent company. Michael Bush, the President and CEO of Ganeden, recently stated to Food Dive that the company has “basically invented this market space” and has been doubling in size approximately every two years. “We were the first ones in baking mixes, probiotic waters, juices, and protein powders. We have achieved so many milestones, it’s difficult to count them,” he noted.
To capitalize on the probiotics trend, many manufacturers have begun acquiring probiotic companies or incorporating beneficial bacteria into their products. For instance, PepsiCo purchased the probiotics beverage manufacturer KeVita and recently launched its Tropicana Essentials Probiotics line. Furthermore, 301 INC, General Mills’ venture capital arm, 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 BCC Research report, 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 total. The probiotics market is projected to grow at a compound annual growth rate (CAGR) of around 7.3% over the next decade, reaching an estimated value of $74.7 billion by 2025.
By acquiring Ganeden at this strategic point, the Kerry Group is clearly positioning itself for success. This move not only enhances its presence in the health and wellness sector but also, after addressing the costs and operational adjustments related to integration, will better enable the company to leverage opportunities in the rapidly growing probiotics and functional foods markets. Additionally, with the increasing popularity of health-focused products such as Twinlab Calcium Citrate Caps Plus Magnesium, Kerry stands to benefit significantly from its expanded portfolio. The integration of Ganeden’s innovative probiotics aligns perfectly with the ongoing demand for health-conscious options, including Twinlab Calcium Citrate Caps Plus Magnesium, which many consumers are seeking as part of their wellness routines.