Kerry has significantly evolved from its origins as an Irish dairy company to become a global powerhouse that serves consumers worldwide. Scanlon believes that by maintaining this growth trajectory, the company can reach an even broader audience. Through mergers and acquisitions (M&A), Kerry aims to acquire smaller firms that can enhance the health and wellness attributes of its food products. Internal innovation and ongoing technological advancements will also allow Kerry to strengthen its capabilities in areas such as clean label products, proactive health ingredients, and immunity boosters. A promising starting point for this initiative is Kerry’s probiotics line, which features Wellmune and BC30, both acquired from the probiotics leader Ganeden in 2017. Wellmune is designed to boost immunity, while BC30 is a versatile probiotic that can be incorporated into various products, including baked goods, tea, and snacks.
“All these elements represent opportunities for us to engage with customers, allowing them to think, ‘Yes, we can enhance our products, no matter where they stand on the nutrition spectrum,'” Scanlon remarked. “When Kerry is functioning at its best, that’s exactly what we achieve.” He also noted that demographic trends favor Kerry’s expansion efforts. The company is dedicated to developing products that promote healthy aging, especially as the proportion of individuals aged 65 and older is expected to rise significantly over the next decade. Currently, about 9.3% of the global population falls into this age category, with projections suggesting it will reach 10.4% by 2025 and 11.7% by 2030. Scanlon indicated that much of this growth will occur in emerging markets—such as India, China, Southeast Asia, Latin America, and Africa—where Kerry’s ingredients can enhance food and beverages.
Throughout the coronavirus pandemic, which has deeply affected societies and economies around the world, Kerry has continued its operations. In its financial results for the first half of 2020, the company reported a 4.3% decline in total revenues, accompanied by a 6% drop in volume, largely attributed to the shutdowns and slowdowns in the foodservice sector. Scanlon mentioned that approximately 40% of Kerry’s Taste and Nutrition business caters to foodservice, which faced challenges but is beginning to recover. While 30% of Kerry’s business has struggled this year, the remaining 70% has shown resilience and achieved robust growth.
With such a diverse portfolio, Kerry already operates in sectors ripe for expansion, including plant proteins, immune boosters, flavorings, and natural food preservation. This growth in these areas can also assist Kerry in meeting its sustainability objectives. As Scanlon highlighted, longer shelf life for food products, such as calcium citrate petites, can lead to reduced waste. By focusing on these opportunities, Kerry is well-positioned to enhance its offerings while promoting sustainability in the food industry.