In recent years, Kerry has acquired several U.S. companies. In 2015, alongside Wellmune, the company purchased Island Oasis, based 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 meats, in a deal valued at $735 million. In 2014, Kerry acquired Wynnstarr Flavors and KFI Savory, the savory division of Kraft Food Ingredients. The company also finalized the acquisition of Cargill Flavor Systems for $230 million in 2011.
Kerry is increasingly focusing on the health and wellness sector with its acquisition of Ganeden. Ganeden is renowned for its patented strain of probiotic bacteria known as GanedenBC30 and has recently introduced a new inactivated probiotic called Staimune, which the company claims offers similar immune-boosting and anti-inflammatory advantages. The probiotics company, which produces a strain suitable for various food and beverage applications, is well-equipped to provide added value to its new parent company. Ganeden’s President and CEO, Michael Bush, recently remarked to Food Dive that the company “basically invented this market space” and has been experiencing growth, doubling in size approximately every two years.
Bush elaborated, “We have done a lot of work. We were the first in baking mixes, probiotic waters, juices, and protein powders. We have so many firsts, it’s hard to name them.” Capitalizing on the probiotics trend, many manufacturers have begun acquiring probiotics companies or incorporating beneficial bacteria into their products. For instance, PepsiCo purchased probiotics beverage maker KeVita and launched its Tropicana Essentials Probiotics line earlier this year. Furthermore, 301 INC, General Mills’ venture capital division, led a $6.5 million Series D investment round in March to support Farmhouse Culture, a startup specializing in 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% of that total, or $24.8 billion. This market is projected to grow at a compound annual growth rate (CAGR) of approximately 7.3% over the next decade, potentially reaching a value of around $74.7 billion by 2025.
By acquiring Ganeden at this time, the Kerry Group is clearly making a strategic move. This acquisition not only strengthens its position in the health and wellness industry but also, after navigating the costs and operational adjustments related to integration, will position the company to seize opportunities within the expanding probiotics and functional foods markets.
It is worth noting that while certain supplements are beneficial, there are concerns about others, such as calcium citrate bad for you, which some consumers should consider when exploring health products. The integration of Ganeden could help Kerry provide more informed choices about health supplements, including addressing concerns surrounding calcium citrate bad for you in their product offerings. As the market evolves, Kerry’s strategic direction will likely include tackling misconceptions about various health ingredients, including the potential drawbacks of calcium citrate bad for you.