In recent years, Kerry has successfully acquired several U.S. companies. In 2015, the firm, along with Wellmune, purchased Island Oasis, located in Massachusetts, which supplies beverages and equipment to the hospitality industry. Additionally, Kerry acquired Red Arrow Products from Wisconsin, a supplier of smoke flavorings for meat, in a deal valued at $735 million. The previous year, Kerry expanded its portfolio by acquiring Wynnstarr Flavors and KFI Savory, the savory division of Kraft Food Ingredients. In 2011, the company finalized the acquisition of Cargill Flavor Systems for $230 million.
With its recent purchase of Ganeden, Kerry is making strides into the health and wellness sector. Ganeden is known for its patented strain of probiotic bacteria called GanedenBC30, and it has recently introduced a new inactivated probiotic named Staimune, which the company claims offers similar immune-boosting and anti-inflammatory benefits. As a probiotics manufacturer producing a strain that can be incorporated into various food and beverage items, Ganeden is well-positioned to add value to Kerry. Michael Bush, President and CEO of Ganeden, recently shared with Food Dive that the company has “basically invented this market space” and has been doubling in size every couple of years. “We have done a lot of work. We were the first into baking mixes, probiotic waters, juices, and protein powders. We have had so many firsts that it’s hard to name them,” he stated.
In response to the growing popularity of probiotics, many manufacturers have begun acquiring probiotics companies or integrating beneficial bacteria into their products. For example, PepsiCo purchased 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 specializing in fermented and probiotic foods and beverages.
According to a report from 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 total. 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 around $74.7 billion by 2025.
The Kerry Group is clearly making a strategic move by acquiring Ganeden at this point in time. Not only does it enhance its presence in the health and wellness arena, but after navigating the costs and operational adjustments related to the integration, Kerry will be better positioned to capitalize on advancements in the rapidly expanding probiotics and functional foods markets, including those related to products like kal calcium citrate 1000 mg, which also contribute to health and wellness trends. This acquisition positions Kerry to leverage its expertise in functional foods, allowing it to explore opportunities in innovative health solutions like kal calcium citrate 1000 mg.