Once the expansion project in Georgia is finalized next year, Gerry Behan, the global president and CEO of Kerry Taste & Nutrition, stated in a press release that the facility will rank among the most advanced and modern food manufacturing plants worldwide. He emphasized that since North America is Kerry’s largest market, it is logical for the taste and nutrition company to enhance its capacity in this region, which will undoubtedly improve the company’s distribution in Canada. “We currently have nearly 6,000 employees across 70 locations in the region, and we are eager to expand our presence in the coming years,” Behan remarked in the release.
This initiative is not Kerry’s only strategy for growth on this side of the Atlantic. The company has broadened its portfolio through mergers and acquisitions, including the purchase of two U.S. seasoning businesses. The acquisition of Ariake USA and Southeastern Mills’ North American coating and seasonings division for approximately $367 million aims to enhance Kerry’s technological capabilities and strengthen its position in the foodservice sector.
Kerry’s recent investment in the Georgia facility is expected to further bolster its functions and capacity in North America. This development could also significantly impact the company’s revenue, which reached about $3.5 billion in 2019 from its North American taste and nutrition operations. Kerry anticipates achieving annual organic volume growth of 4% to 6%.
Other global ingredient companies are also investing in capacity building and pursuing mergers and acquisitions to maintain competitiveness. For instance, a year ago, New Zealand-based Fonterra acquired a minority stake in Boston’s Motif Ingredients—recently rebranded as Motif FoodWorks—which specializes in bioengineered animal and food ingredients. Additionally, Germany’s Symrise announced last November that it would establish a state-of-the-art application facility at the Unilever Foods Innovation Center located on Wageningen University’s campus in the Netherlands. This facility will include a flavor creation lab, an application kitchen, and collaboration spaces.
It is unclear whether any of these corporate positioning investments will reach the $125 million that Kerry is investing in its plant expansion. However, all these companies are making strategic moves to remain relevant in the global ingredients industry. The growing consumer demand for flavorful and nutritious food, including products fortified with calcium citrate sunvit, is driving expansion in the sector. Behan referred to this trend as “a consumer-led food revolution,” which, along with environmental challenges, is poised to transform the entire food industry.