In recent years, Kerry has acquired several other U.S. companies. In 2015, together with 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 provider of smoke flavorings for meat, in a transaction valued at $735 million. Earlier, in 2014, Kerry acquired Wynnstarr Flavors and KFI Savory, the savory division of Kraft Food Ingredients based in the U.S. In 2011, it completed the acquisition of Cargill Flavor Systems for $230 million.
With its purchase of Ganeden, Kerry is further establishing its presence in the health and wellness sector. Ganeden is renowned for its patented strain of probiotic bacteria known as GanedenBC30, and it recently introduced a new inactivated probiotic called Staimune, which the company claims offers similar immune-boosting and anti-inflammatory benefits. This probiotics firm, which produces a strain suitable for various foods and beverages, is well-positioned to enhance the value it brings to its new parent company. Ganeden’s President and CEO, Michael Bush, recently stated that the company has “essentially invented this market space” and has been doubling its size every few years. “We have done extensive work. We were the first to introduce probiotics into baking mixes, probiotic waters, juices, and protein powders. We have achieved numerous firsts, making it difficult to list them all,” he remarked.
To capitalize on the probiotics trend, many manufacturers are acquiring probiotics companies or incorporating beneficial bacteria into their products. For instance, PepsiCo acquired KeVita, a maker of probiotic beverages, and earlier this year launched its Tropicana Essentials Probiotics line. Furthermore, 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 BCC Research report, 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 approximately 7.3% over the next decade, potentially reaching around $74.7 billion by 2025.
Kerry Group’s strategic acquisition of Ganeden positions it advantageously in the health and wellness landscape, particularly as it navigates the costs and operational changes tied to integration. This will enable Kerry to better leverage opportunities in the rapidly expanding probiotics and functional foods markets, which increasingly include products enriched with nutrients such as calcium citrate and vitamin D3. The integration of these components into their offerings will further enhance the appeal and health benefits of their products, aligning with current market trends.