IRELAND – Kerry Group, one of the leading taste and nutrition companies in the world, has reported strong single-digit volume and value sales growth for the fiscal year 2021, driven by growth in its Taste & Nutrition and Consumer Foods channels.
During the year ended December 31, the taste and nutrition giant recorded a volume growth of 8.0% resulting in total revenues of €7.4 billion (US$8.4 billion).
The taste and nutrition category delivered a bulk of the revenue amounting to €6.3 billion (US$7.2 billion).
“In the Taste & Nutrition retail channel we continued to deliver strong growth, while we achieved excellent growth in foodservice with business volumes in all regions above 2019 levels in the fourth quarter,” details Edmond Scanlon, CEO of Kerry.
“This growth was well spread across our end-use markets, with Beverage, Bakery and Meat delivering particularly strong performance.”
Kerry notes that its overall growth was supported by an increased number of customer launches through the year, where it played an important role in improving the sustainability impact of its customers’ products.
In emerging markets it achieved strong growth across all regions, with overall volume growth of 14.4%.
Strategic acquisitions contribute to growth
Kerry’s impressive revenue growth was partly driven by a number of strategic acquisitions and disposal that were made during the year.
Company statement shows that contribution from acquisitions and disposals amounted to 2.1% of total revenue growth.
Some of its major acquisitions include the US$1 billion Niacet, a US-based producer of Food Protection and Preservation technologies
Kerry also completed the bolt-on acquisition of National Vinegar Co., adding further fermentation capacity and supporting the group’s growth strategy in natural preservation.
Under Health & Bio-Pharma – Kerry strengthened capabilities across its proactive health portfolio in the areas of probiotics, scientifically-backed innovative botanical extracts and nutritional lipids with the acquisition of Biosearch.
In this space, the company also reached an agreement for the acquisition of Natreon, which specializes in Ayurvedic and botanical extracts.
Kerry also expanded its presence within its emerging market, with the bolt-on acquisition of Afribon, which is a producer of flavors for a range of food and beverage applications in East Africa.
In other developments, Kerry moved to acquire Almer, which is a dairy taste business based in Johor Bahru, Malaysia.
The company also completed the offloading of its Consumer Foods Meats and Meals Business to Pilgrim’s Pride.
Resilience amid a pandemic
Kerry CEO reflects that business has remained resilient amid an economic climate weathering inflationary prices.
“The year was important for Kerry from a strategic perspective,” he details, referencing the company’s various portfolio developments throughout the year.
Scanlon recognized that current market environment and inflationary pressures continue to present challenges across industry, but noted that Kerry is “stronger positioned and more resilient than ever” as it enters a new strategic cycle.
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