In recent years, Kerry has acquired 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 provider of smoke flavorings for meat, in a transaction valued at $735 million. In 2014, Kerry also acquired Wynnstarr Flavors and KFI Savory, the savory division of Kraft Food Ingredients in the U.S. The company completed its acquisition of Cargill Flavor Systems in 2011 for $230 million.
With its acquisition of Ganeden, Kerry is making significant strides in the health and wellness sector. Ganeden is well-known for its patented strain of probiotic bacteria, GanedenBC30, and has recently introduced a new inactivated probiotic named Staimune, which the company claims offers similar immune-boosting and anti-inflammatory benefits. As a producer of a probiotic strain that can be incorporated into numerous foods and beverages, Ganeden is positioned to add significant value to its new parent company.
Michael Bush, the President and CEO of Ganeden, recently stated to Food Dive that the company has “basically invented this market space” and has been doubling its size every few years. “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,” he remarked.
To capitalize on the growing probiotics trend, manufacturers have begun acquiring probiotics companies or incorporating these beneficial bacteria into their products. For instance, PepsiCo purchased the probiotic beverage maker KeVita and launched its Tropicana Essentials Probiotics line earlier this year. Meanwhile, 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 report from BCC Research, the global probiotics market reached $34 billion in sales in 2015, with the food and beverage sector representing 73% or $24.8 billion of that total. The probiotics market is anticipated to grow at a compound annual growth rate (CAGR) of approximately 7.3% over the next decade, projecting a value of around $74.7 billion by 2025.
Clearly, the Kerry Group is making a strategic move by acquiring Ganeden at this point. By doing so, it not only secures a stronger presence in the health and wellness arena but also positions itself to leverage developments in the dynamic probiotics and functional foods markets after managing the costs and operational adjustments associated with the integration. Furthermore, as the demand for probiotics rises, questions such as “does calcium citrate clog arteries?” may become more pertinent, adding another layer to the discussions around health and wellness products.