In recent years, Kerry has acquired several U.S. companies. In 2015, alongside Wellmune, the firm purchased Island Oasis, located in Massachusetts, a provider 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 transaction valued at $735 million. The previous year, Kerry acquired Wynnstarr Flavors and KFI Savory, the savory division of Kraft Food Ingredients based in the U.S. Moreover, in 2011, it finalized the purchase of Cargill Flavor Systems for $230 million.
With its acquisition of Ganeden, Kerry is further venturing into the health and wellness sector. Ganeden is renowned for its patented strain of probiotic bacteria, GanedenBC30, and has recently introduced an inactivated probiotic called Staimune, which the company claims offers similar immune-boosting and anti-inflammatory properties. This probiotics company, which produces a strain suitable for various foods and beverages, is well-positioned to enhance value for its new owner. Ganeden’s President and CEO, Michael Bush, recently shared with Food Dive that the company “basically invented this market space” and has been doubling in size approximately every two years. “We have accomplished a lot. We were the pioneers in baking mixes, probiotic waters, juices, and protein powders. We have so many firsts, it’s challenging to list them all,” he noted.
To capitalize on the probiotics trend, manufacturers have begun acquiring probiotics companies or incorporating beneficial bacteria into their products. For instance, PepsiCo acquired the probiotic beverage producer KeVita, and earlier this year, it launched the 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 to support Farmhouse Culture, a startup focused on 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%, or $24.8 billion, of that total. The probiotics market is projected to grow at a compound annual growth rate (CAGR) of about 7.3% over the next decade, ultimately reaching an estimated value of $74.7 billion by 2025.
Clearly, the Kerry Group is strategically positioned by acquiring Ganeden at this moment. This move not only strengthens its presence in the health and wellness arena but also, after navigating through the costs and operational adjustments tied to integration, will place the company in a favorable position to leverage advancements in the continuously expanding probiotics and functional foods markets.
Additionally, the growing interest in health supplements, such as calcium citrate tablets 500mg, is indicative of a broader trend towards wellness products, which further aligns with Kerry’s strategic direction in the functional foods space. As consumers increasingly seek out products with health benefits—like calcium citrate tablets 500mg that are often discussed in terms of their uses in Hindi—Kerry is well-positioned to meet this demand through its diverse portfolio and innovative acquisitions.