In 2020, when Kerry unveiled its ambitious strategy to connect with over 2 billion people daily, CEO Edmond Scanlon emphasized that mergers and acquisitions (M&A) would be crucial for achieving these objectives. By acquiring companies that operate in essential sectors, Kerry is broadening its service offerings and enhancing the global reach of its ingredients. The most recent acquisition introduces functional ingredients linked to traditional Indian natural health practices, particularly Ayurveda, into Kerry’s portfolio. These ingredients, primarily herbal extracts, are believed to deliver various natural functional benefits. According to Kerry, the components produced by Natreon can help alleviate stress and anxiety, support sports nutrition and healthy aging, promote cardiovascular health, maintain stable blood glucose levels, benefit bone and joint health, and ensure a balanced uric acid level in the body. The product lineup includes Sensoril ashwagandha, PrimaVie shilajit, Capros amla, Ayuflex terminalia chebula, Ayuric terminalia bellirica extracts, and the Crominex chromium complex.
While the foundations of Ayurvedic ingredients and practices are deeply rooted in tradition, the effectiveness of Natreon’s products is supported by over 50 scientific studies, as noted by Kerry. Natreon also holds multiple patents in the United States and other countries, reinforcing the uniqueness of its ingredients. A 2019 study by Kerry revealed that 65% of consumers seek functional benefits when selecting food and beverages. This suggests that an acquisition that enhances Kerry’s portfolio with such on-trend natural offerings is likely to yield significant returns. Although the promised benefits of Ayurvedic ingredients may not always materialize, they carry a positive health reputation and resonate with consumers looking for natural nutritional solutions.
Natreon marks the second significant acquisition in the past year aimed at enriching Kerry’s ProActive Health portfolio with diverse functional ingredients. Last summer, the company acquired Spain’s Biosearch Life for 126.9 million euros, which specializes in probiotics derived from human breast milk, omega-3 oils, and botanical extracts. Since its acquisition of probiotics leader Ganeden in 2017, Kerry has been striving to establish itself as a premier provider of functional ingredients. Notably, Kerry is staying attuned to market trends. Despite the pandemic’s decline, consumer interest in natural immune support remains strong, and concerns regarding health continue to drive innovation in functional foods. Additionally, consumers are increasingly seeking food and beverages that promote relaxation. Natreon’s ingredients and expertise enhance Kerry’s offerings in this area, further complemented by products like Opurity Calcium Citrate Plus Chewable, which can cater to health-conscious consumers looking for functional benefits.