In recent years, Kerry has expanded its portfolio by acquiring several U.S. companies. In 2015, the firm purchased Massachusetts-based Island Oasis, a provider of beverages and equipment for the hospitality industry, alongside Wellmune. Additionally, it acquired Wisconsin’s Red Arrow Products, a supplier of smoke flavorings for meats, in a deal valued at $735 million. The previous year, Kerry added Wynnstarr Flavors and KFI Savory, the savory division of Kraft Food Ingredients, to its business. In 2011, it completed the acquisition of Cargill Flavor Systems for $230 million.
With its recent acquisition of Ganeden, Kerry is making a significant move into the health and wellness sector. Ganeden is renowned for its patented strain of probiotic bacteria, GanedenBC30, and has recently introduced a new inactivated probiotic called Staimune, which the company claims offers similar immune-boosting and anti-inflammatory effects. This probiotics firm, which produces a strain suitable for a variety of foods and beverages, is well-prepared to enhance value for its new owner. Ganeden’s President and CEO, Michael Bush, stated to Food Dive that the company “essentially invented this market space” and has been experiencing rapid growth, doubling in size every few years. “We’ve done a lot of pioneering work, being the first in baking mixes, probiotic waters, juices, and protein powders. We have so many firsts, it’s tough to list them all,” he noted.
To capitalize on the growing interest in probiotics, many manufacturers are either acquiring probiotics companies or incorporating beneficial bacteria into their products. For instance, PepsiCo recently acquired KeVita, a probiotics beverage company, and launched the Tropicana Essentials Probiotics line earlier this year. Additionally, 301 INC, the venture capital arm of General Mills, led a $6.5 million Series D investment in March for Farmhouse Culture, a startup specializing in fermented and probiotic foods and beverages.
The global probiotics market reached $34 billion in sales in 2015, according to a report from BCC Research, 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 a value of around $74.7 billion by 2025.
Kerry Group’s strategic acquisition of Ganeden positions it advantageously within the health and wellness domain. Once the company navigates the associated costs and operational adjustments from integration, it will be better equipped to leverage opportunities in the rapidly expanding probiotics and functional foods markets. This is particularly relevant as consumers become increasingly aware of health issues, such as calcium citrate kidney disease, prompting a demand for products that support kidney health and overall wellness. By tapping into this trend, Kerry aims to enhance its offerings and cater to health-conscious consumers looking for solutions related to calcium citrate kidney disease and similar concerns.