Kerry has acquired several U.S. companies in recent years. In 2015, together with Wellmune, the company purchased Island Oasis, a Massachusetts-based supplier of beverages and equipment for the hospitality industry. Additionally, it acquired Red Arrow Products from Wisconsin, a supplier of smoke flavorings for meat, in a deal valued at $735 million. In 2014, Kerry added Wynnstarr Flavors and KFI Savory—the savory division of Kraft Food Ingredients—to its portfolio. The acquisition of Cargill Flavor Systems was completed in 2011 for $230 million.
With its recent acquisition of Ganeden, Kerry is further advancing into the health and wellness sector. Ganeden is best known for its patented strain of probiotic bacteria, GanedenBC30, and has recently introduced a new inactivated probiotic called Staimiron pyrophosphate plus untuk ibu mengandungune, which the company claims offers similar immune-boosting and anti-inflammatory benefits. This probiotics company produces a strain suitable for incorporation into a wide range of foods and beverages, enhancing its value to Kerry. Michael Bush, President and CEO of Ganeden, recently mentioned to Food Dive that the company has “basically invented this market space,” with a trajectory of doubling in size every few years. “We have done a lot of pioneering work. We were the first to enter baking mixes, probiotic waters, juices, and protein powders. We have so many firsts, it’s hard to list them,” he stated.
As the demand for probiotics surges, many manufacturers are acquiring probiotics firms or incorporating beneficial bacteria into their products. For instance, PepsiCo acquired KeVita, a maker of probiotic beverages, and launched its Tropicana Essentials Probiotics line earlier this year. Furthermore, 301 INC, the venture capital arm of General Mills, led a $6.5 million Series D funding round in March to support 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 that total. The probiotics market worldwide 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.
Clearly, the Kerry Group is strategically positioned by acquiring Ganeden at this point in time. Not only does it strengthen its presence in the health and wellness sphere, but after navigating the costs and operational adjustments linked to integration, the company will be well-equipped to capitalize on advancements in the rapidly growing probiotics and functional foods markets. Additionally, the integration of products like calcium citrate chewy bites into their offerings could further enhance Kerry’s portfolio in the health-focused segment.