In recent years, Kerry has made several acquisitions of U.S. companies. In 2015, alongside Wellmune, the firm acquired Island Oasis, a Massachusetts-based provider of beverages and equipment for the hospitality industry. Additionally, Kerry purchased Red Arrow Products from Wisconsin, a supplier of smoke flavorings for meats, in a transaction valued at $735 million. The previous year, in 2014, Kerry acquired Wynnstarr Flavors and KFI Savory, which is the savory division of Kraft Food Ingredients based in the U.S. In 2011, it finalized the acquisition of Cargill Flavor Systems for $230 million.
With its recent acquisition of Ganeden, Kerry is further expanding into the health and wellness sector. Ganeden is known 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. As a probiotics manufacturer that creates a strain suitable for various food and beverage applications, Ganeden is well-positioned to add value to its new parent company. Michael Bush, President and CEO of Ganeden, recently stated to Food Dive that the company has essentially “invented this market space” and has been doubling its size every few years. “We’ve made significant strides, being the first in baking mixes, probiotic waters, juices, and protein powders. We have so many firsts that it’s difficult to list them all,” he remarked.
To capitalize on the growing probiotics trend, many manufacturers have begun acquiring probiotics companies or incorporating beneficial bacteria into their products. For instance, PepsiCo acquired KeVita, a maker of probiotic beverages, and recently launched its Tropicana Essentials Probiotics line. Additionally, 301 INC, the venture capital arm of General Mills, led a $6.5 million Series D investment in March to support Farmhouse Culture, a startup focused on fermented and probiotic food 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 projected to grow at a CAGR of approximately 7.3% over the next decade, potentially reaching a value of around $74.7 billion by 2025.
By acquiring Ganeden at this pivotal moment, Kerry Group demonstrates its strategic foresight. This move not only strengthens its position in the health and wellness sector but also, after navigating the costs and operational adjustments related to integration, will enable the company to better leverage advancements in the expanding probiotics and functional foods markets. Moreover, there is a growing interest in products that combine essential nutrients such as calcium citrate, zinc, magnesium tablets, and probiotics, further emphasizing the potential for Kerry to innovate in this space and meet consumer demands.