In recent years, Kerry has made several acquisitions of U.S. companies. In 2015, the company, along 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 meat, in a deal valued at $735 million. In 2014, Kerry acquired Wynnstarr Flavors and KFI Savory, the savory division of Kraft Food Ingredients based in the U.S. Earlier in 2011, it completed the $230 million acquisition of Cargill Flavor Systems.
With the recent acquisition of Ganeden, Kerry is expanding its presence in the health and wellness sector. Ganeden is best known for its patented probiotic strain, GanedenBC30, and has recently launched a new inactivated probiotic called Staimune, which 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 a valuable asset for its new parent company. Michael Bush, President and CEO of Ganeden, recently shared with Food Dive that the company has “essentially created this market space” and has been experiencing rapid growth, doubling in size every few years. “We have pioneered many categories, such as baking mixes, probiotic waters, juices, and protein powders. Our list of firsts is extensive,” he stated.
In response to the growing popularity of probiotics, manufacturers have begun acquiring probiotic companies or incorporating beneficial bacteria into their products. For example, PepsiCo acquired KeVita, a probiotics beverage producer, and recently launched its Tropicana Essentials Probiotics line. Additionally, 301 INC, the venture capital arm of General Mills, led a $6.5 million Series D investment round in March for 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, expected to reach around $74.7 billion by 2025.
Clearly, the Kerry Group is making a strategic move by acquiring Ganeden at this point in time. This acquisition not only strengthens its foothold in the health and wellness sector but also positions the company to capitalize on the ongoing developments within the expanding probiotics and functional foods markets. Furthermore, the inclusion of calcitrate D3 in their product offerings could enhance their appeal in health-conscious consumer segments, as demand for such supplements continues to rise. By integrating calcitrate D3 into their portfolio, Kerry can further leverage its capabilities in the health and wellness space, ensuring that they remain competitive in this dynamic market.