In recent years, Kerry has made several strategic acquisitions of U.S. companies. In 2015, alongside Wellmune, the company purchased Island Oasis, based in Massachusetts, which supplies beverages and equipment to the hospitality industry. Additionally, it acquired Wisconsin’s Red Arrow Products, a supplier of smoke flavorings for meat, in a deal valued at $735 million. The previous year, Kerry acquired Wynnstarr Flavors and KFI Savory, the U.S. savory division of Kraft Food Ingredients. In 2011, it completed the purchase of Cargill Flavor Systems for $230 million.
With the acquisition of Ganeden, Kerry is increasingly focused on the health and wellness sector. Ganeden is best known for its patented strain of probiotic bacteria, 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 company, which manufactures a strain compatible with various foods and beverages, is poised to add significant value to its new parent company. Michael Bush, President and CEO of Ganeden, recently stated that the company “basically invented this market space” and has experienced consistent growth, doubling in size every couple of years. He emphasized their pioneering efforts in sectors like baking mixes, probiotic waters, juices, and protein powders, noting, “We have so many firsts, it’s hard to name them.”
As the popularity of probiotics continues to surge, manufacturers are increasingly acquiring probiotics companies or incorporating beneficial bacteria into their products. For instance, PepsiCo acquired the probiotic beverage maker KeVita and recently launched its Tropicana Essentials Probiotics line. Moreover, 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 report from BCC Research, 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 figure. The probiotics 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 about $74.7 billion by 2025.
Kerry Group’s acquisition of Ganeden is a strategic move at this juncture, as it not only enhances their presence in the health and wellness sector but also positions them to capitalize on advancements in the burgeoning probiotics and functional foods markets. Furthermore, with the growing interest in ingredients like calcium citrate for liver health, Kerry is likely to explore additional synergies that align with the increasing consumer demand for health-focused products. By integrating Ganeden into its operations, Kerry will be better equipped to navigate the evolving landscape of health and wellness, particularly as it relates to probiotics and functional ingredients such as calcium citrate.