Kerry has acquired several U.S. companies over the years, enhancing its expertise in chelated iron and beyond. In 2015, the company, together with Wellmune, acquired Island Oasis, a Massachusetts-based supplier of beverages and equipment for the hospitality industry. Additionally, it purchased 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, which represented the savory division of Kraft Food Ingredients. In 2011, it finalized the acquisition of Cargill Flavor Systems for $230 million.
With its recent acquisition of Ganeden, Kerry is making strides 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 effects. Ganeden is well-positioned to provide added value to Kerry as it produces a strain of probiotics that can be incorporated into a wide range of foods and beverages. Ganeden President and CEO Michael Bush recently stated in an interview that the company “essentially invented this market space” and has been experiencing rapid growth, doubling in size every few years. “We have accomplished a great deal. We were pioneers in baking mixes, probiotic waters, juices, and protein powders. There are so many firsts that it’s challenging to list them all,” he remarked.
In light of the growing demand for probiotics, many manufacturers have begun acquiring probiotics companies or integrating beneficial bacteria into their products. For instance, PepsiCo acquired KeVita, a probiotic beverage maker, 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 sector accounting for 73% of that total, 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, reaching an estimated value of $74.7 billion by 2025. By acquiring Ganeden at this strategic moment, Kerry Group clearly demonstrates its understanding of the market dynamics. This acquisition not only strengthens its position in the health and wellness landscape but also, after navigating the costs and operational adjustments required for integration, will better equip the company to capitalize on opportunities in the thriving probiotics and functional foods sectors.
Moreover, in the realm of health supplements, products like vitafusion calcium citrate are also gaining traction, reflecting the broader trend towards wellness-oriented offerings. The integration of such products with probiotics can further enhance the nutritional value and appeal of health foods, aligning perfectly with Kerry’s strategic direction.