UK – Irish multinational taste and nutrition company Kerry has completed its acquisition of US-based supplier of branded Ayurvedic botanical ingredients Natreon.
Natreon’s portfolio consists of functional ingredients targeting a range of areas, including diabetes management, cardiovascular support and healthy ageing.
Following the acquisition, the company’s Ayurvedic extracts – which are supplied to both the dietary supplement and the functional food and beverage industries -will be integrated into Kerry’s ProActive Health portfolio.
Headquartered in New Brunswick, Natreon has 34 employees and operates three facilities – its head office, an R&D facility in India and a manufacturing site in Nepal.
Gerry Behan, president and CEO Taste & Nutrition at Kerry Group, said: “Ayurveda is one of the world’s oldest holistic and alternative wellness practices with historical roots in India”.
“Today, we see growing use of Ayurvedic and botanical ingredients, which are trending in functional foods and beverages for their ability to deliver stress, cognitive and energy benefits, for example.
Globally, the demand for Ayurvedic products has been growing steadily driven by rise in consumer health consciousness and improved distribution network.
The global Ayurvedic herbs market size was valued at US$9.5 billion in 2020 and is anticipated to reach US$21.6 billion by 2028, with a CAGR of 10.8% during the forecast period, according to Allied Market Research.
Allied Market Research notes that the market is expected to exhibit an incremental revenue opportunity of US$12 billion from 2020 to 2028.
“Our acquisition of Natreon allows us to participate in this dynamic market with on-trend and science-backed Ayurvedic ingredients, including the well-known Sensoril Ashwagandha brand,” Behan added.
Earlier, Kerry Group expanded its reach in the US and Canada with the opening of a newly upgraded €125m (£105.2m) manufacturing facility in Rome, Georgia.
The upgrade to the 29,357m2 factory will double capacity for the manufacturer in order to meet growing consumer demand in the poultry, seafood and alternative protein markets in North America.
Upgrades to the site focused on sustainability, including 100% renewable electricity, zero waste to landfill, local sourcing where possible and investment into energy-efficient equipment.
Meanwhile, the Irish food giant has suspended operations in Russia and Belarus, becoming the latest major food company to do so.
The move follows pressure, including from Ireland South MEP Billy Kelleher, who wrote to Kerry’s chief executive Edmond Scanlon last week urging the company to exit even when not obliged to by the sanctions regime.
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