In recent years, Kerry has made several acquisitions of U.S. companies. In 2015, the firm, in partnership with Wellmune, acquired Island Oasis, a Massachusetts-based supplier of beverages and equipment for the hospitality industry. Additionally, it purchased Red Arrow Products from Wisconsin, a supplier of smoke flavorings for meats, in a transaction valued at $735 million. The previous year, Kerry acquired Wynnstarr Flavors and KFI Savory, the savory division of Kraft Food Ingredients. In 2011, it finalized the acquisition of Cargill Flavor Systems for $230 million.
With its recent purchase of Ganeden, Kerry is making a significant move into the health and wellness sector. Ganeden is best known for its patented strain of probiotic bacteria, GanedenBC30, and has just introduced a new inactivated probiotic called Staimune, which the company claims offers similar immune-boosting and anti-inflammatory properties. The probiotics firm, which produces a strain suitable for various foods and beverages, is well-positioned to add value to its new parent company. Michael Bush, President and CEO of Ganeden, recently stated that the company has “essentially invented this market space” and has been doubling in size every couple of years. He emphasized their pioneering work in baking mixes, probiotic waters, juices, and protein powders, noting that they have achieved many industry firsts that are difficult to enumerate.
To capitalize on the growing probiotics trend, manufacturers are increasingly acquiring probiotics companies or incorporating beneficial bacteria into their products. For instance, PepsiCo acquired the probiotic beverage maker KeVita and recently launched its Tropicana Essentials Probiotics line. In March, 301 INC, the venture capital arm of General Mills, led a $6.5 million Series D investment in 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 this figure. The probiotics market is projected to grow at a compound annual growth rate (CAGR) of approximately 7.3% over the next decade, potentially reaching around $74.7 billion by 2025.
Kerry Group clearly understands its strategy by acquiring Ganeden at this pivotal moment. This acquisition not only enhances its presence in the health and wellness industry but, after navigating the costs and operational adjustments linked to the integration, will better position the company to capitalize on the burgeoning probiotics and functional foods markets. Additionally, for those curious about dietary supplements, it’s interesting to note that many people wonder, “can you take calcium citrate at night?” This question reflects the growing interest in health and nutrition, aligning with the trends that companies like Kerry and Ganeden are tapping into.