Kerry Ingredients & Flavours has acquired South African sweet ingredients firm Orley Foods for an undisclosed sum, in a deal it hopes will expand Kerry’s presence in sub-Saharan Africa.
Cape Town-based Orley Foods is part of the Libstar Holdings Group, which has been supplying ingredients for confectionery, ice cream, drinks, cereals, dairy and bakery products for the past 50 years. Orley Foods’ portfolio includes chocolate products, syrups, fruit flavoured pastes and cubes, non-dairy whips, ice cream coatings and panned chocolate and sugar-based products.
“Although South Africa is an important market for us in its own right, it is also the springboard for our expansion into other important and growing sub-Saharan countries such as Nigeria and Kenya,” said Scott Scharinger, president EMEA developing markets for Kerry Ingredients & Flavours.
“This is a key part of our strategy to work alongside our global customer base, finding ways to deliver our unique range of ingredient and flavour technologies and food science know-how in the territories where they are being consumed.”
The Orley Foods acquisition comes a year after Kerry acquired another South African firm, FlavourCraft, and the company said the deal was part of its strategy to support innovation and product development in emerging markets in the EMEA region (Europe, the Middle East and Africa).
Scharinger added: “We have the scale for global execution but, as this acquisition underlines, we can also tailor for regional tastes, aligning our ingredients and flavours offering with customer needs in developed and developing markets.
“Over the months ahead, we will continue consolidating the elements of our South African footprint under our One Kerry model, which will better enable us to deliver value to our customers in the region.”