In recent years, Kerry has expanded its portfolio by acquiring several U.S. companies. In 2015, alongside Wellmune, the firm purchased Island Oasis, a Massachusetts-based supplier 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. In 2014, Kerry took over Wynnstarr Flavors and KFI Savory, the savory division of Kraft Food Ingredients based in the U.S. Furthermore, in 2011, it finalized the acquisition of Cargill Flavor Systems for $230 million.
With the acquisition of Ganeden, Kerry is making significant strides 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 benefits. This probiotics company, which produces strains suitable for a variety of foods and beverages, is poised to add significant value to its new parent company. Michael Bush, President and CEO of Ganeden, recently mentioned to Food Dive that the company “essentially invented this market space” and has been doubling its size approximately every two years. “We have done extensive work. We were pioneers in baking mixes, probiotic waters, juices, and protein powders. We have so many firsts that it’s challenging to list them all,” he stated.
To capitalize on the growing probiotics trend, manufacturers have begun acquiring probiotics companies or incorporating beneficial bacteria into their products. For instance, PepsiCo acquired the probiotics beverage company KeVita and launched its Tropicana Essentials Probiotics line earlier this year. Additionally, 301 INC, the venture capital branch of General Mills, 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 BCC Research report, the global probiotics market reached $34 billion in sales in 2015, with the food and beverage industry accounting for 73% of that total, or $24.8 billion. The probiotics market is projected to grow at a compound annual growth rate (CAGR) of about 7.3% over the next decade, reaching an estimated value of $74.7 billion by 2025.
Clearly, the Kerry Group is making a strategic move by acquiring Ganeden at this time. This acquisition not only enhances its presence in the health and wellness sector but, once the costs and operational adjustments related to integration are addressed, will position Kerry to take full advantage of advancements in the expanding probiotics and functional foods markets. In this context, products like Solgar Calcium Citrate with Vitamin D3 60 tablets could also benefit from the growing interest in health-focused items, aligning with the trend of integrating probiotics and functional ingredients into various food and beverage offerings.