Kerry talks Niacet acquisition: ‘We have created a global leadership position in the food preservation sector’

By Katy Askew

- Last updated on GMT

Kerry eyes growing market for food preservation / Pic: GettyImages-Yulia Gusterina
Kerry eyes growing market for food preservation / Pic: GettyImages-Yulia Gusterina

Related tags Food preservation Kerry

Kerry announced yesterday (14 September) that it has completed the acquisition of preservation specialist Niacet, in a deal worth €853m. What does this mean for the ingredient supplier? FoodNavigator caught up with Bert De Vegt, Vice President of Food Preservation and Protection, to find out.

Kerry has closed a deal to take control of US-headquartered Niacet, a company that specializes in preservative technologies. The combination of Kerry’s food protection portfolio and Niacet’s capabilities, expertise and knowledge carves out a leadership position for the business in the preservatives space, according to division chief De Vegt.

“Niacet is a global leader in preservation and their business complements Kerry’s existing extensive portfolio of clean label food protection and preservation technologies. Together, we have a clear leadership position in bakery, meat and plant-based food and can now support our customers with both cost effective conventional preservatives and clean label varieties, meeting their specific needs,”​ he explained.

“The combination of our two businesses have created a global leadership position in the food preservation sector.”

A growing market for freshness

According to Kerry, the global demand for technologies that preserve freshness, extend shelf life and combat food waste is rising.

“There is a growing awareness of burden of food waste and the need for the food industry to do more. Most of our customers would like to extend their current shelf life and in doing so, reduce waste, but food safety is a complex multi-faceted challenge,”​ De Vegt revealed.

The combination of Kerry’s existing food protection solutions and Niacet’s business will leave the company well-placed to meet this expanding need, delivering complementary technologies and – Kerry hopes – accelerating its growth.

Stepping up R&D

Sales synergies will be one part of this growth story, De Vegt predicted. “We will expand the commercial reach of Niacet’s market-leading brands globally, by leveraging the breadth and depth of our Kerry network, application centres of excellence and global sales teams,”​ he told this publication.

The other will be an acceleration in the group’s technical and R&D capabilities.

“This acquisition combines two talented technical teams, who share the same dedication to science and innovation and collectively, we are committed to developing even more innovative new food protection and preservation solutions,”​ the preservatives lead commented.

“By combining our collective technologies, capabilities, expertise and knowledge, and layering in Kerry’s broader Taste and Nutrition portfolio, we are able to develop solutions for even the most complex food safety challenges, while maintaining channel flexibility and acceptable organoleptic properties,”​ he claimed.

Kerry plans to build on Niacet’s proprietary technology and technical know-how to support growth, De Vegt noted. “We will build on Niacet’s proprietary granulation, drying and chemical synthesis capabilities, bringing new antimicrobial free flowing powders and crystals, with low sodium and other complex characteristics to market.”

The deal also expands Kerry’s presence in important sectors for preservation tech – pharma and animal feed.

“The acquisition expands Kerry capabilities for the pharmaceutical industry through the addition of Niacet’s leadership in the production of high-grade acetates, which are used to produce insulin, dialysate, phosphate binders, and many other important healthcare products. This complements Kerry’s existing portfolio of cell media and excipients for the pharmaceutical industry.

“The acquisition of Niacet also expands Kerry capabilities for the animal nutrition industry, by adding high quality preservation technologies for animal feed.”

Kerry talks Nicet deal / Pic: Kerry

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