Kerry to purchase preservative company Niacet for $1B

16 Jul 2021

Irish ingredients giant Kerry Group has entered into an agreement to buy the clean-label preservatives manufacturer Niacet from the private equity group SK Capital for $1 billion. The transaction is expected to close in the third quarter of this year.

Following the acquisition, Niacet will be integrated into Kerry’s global food protection and preservation platform, which the company is diligently expanding to focus more acutely on clean-label alternatives.

Kerry to purchase preservative company Niacet for $1B

Kerry intends to double its reach by 2030 and have its products used by 2 billion people worldwide every day. To achieve this aim, the Irish company is steadily enhancing its capabilities in clean-label ingredients across a variety of categories. Now, its acquisition of Niacet helps further its objective in a big way.

Niacet says it has “clear leadership” position in preservatives in bakery and pharma. However, Food Dive reported that the company has the largest capacity in North America for the production of preservation solutions, including organic acid salts, including sodium acetate, sodium diacetate, and calcium propionate. Its clean-label preservation options extend further and the company offers several vinegar-based solutions to its clients that span 75 countries.

Even with its already global reach, Niacet CEO and significant minority owner Kelly Brannen said in a statement that this acquisition “will allow Niacet to grow at a much faster rate and sell in new markets around the world.” Ostensibly, this growth will include a significant amount of clean-label preservatives since Brannen said, “our constant focus on innovation has been key to the development and success of our new clean label products.”

Having an unwavering focus on clean-label ingredients is likely to play in Kerry’s favor. Consumers are becoming hyper-aware of the ingredients being used in their food and beverage products, and are consistently seeking out options that are better-for-you and have cleaner labels. In fact, the International Food Information Council revealed through research that preservatives are particularly important to consumers and that four in 10 consumers seek out natural preservative options.

In the U.S., the need for alternative natural preservative solutions has become even more urgent in recent months following a ruling by the USDA’s Food Safety and Inspection Service (FSIS) decision last December to require products processed using any source of nitrates or nitrites — either synthetic or natural – to not use “natural” claims. This coupled with the findings from the IFIC that natural preservatives are “far preferred” over artificial versions, indicates that Kerry has the stage set for a grand entrance into the natural preservatives space.

Niacet will bring a substantial portfolio to Kerry with which to begin the expansion into natural preservative alternatives. In 2021, Kerry said it anticipates the company to have sales of approximately $220 million. With this substantial slice of market share as the springboard from which it will begin, Kerry will undoubtedly have a head start when it comes to working toward dominance in the natural preservation ingredients space.

Related categories

Related tags

Market News

Related news

NutriScore algorithm update a ‘step in right direction’

NutriScore algorithm update a ‘step in right direction’

7 Sep 2022

Campaigning organisation Foodwatch International is hailing the update to the NutriScore algorithm as a “step in the right direction” but says there is still space for further improvement.

Read more 
Are new WHO sweeteners guidelines ‘a disservice’ to public health?

Are new WHO sweeteners guidelines ‘a disservice’ to public health?

6 Sep 2022

New draft recommendations from the World Health Organization (WHO) warn that zero-calorie sweeteners should not be used to help weight control or reduce the risk of noncommunicable diseases’ (NCDs) – sparking mixed reactions from industry groups.

Read more 
How the Ukraine crisis may affect the food chain transition

How the Ukraine crisis may affect the food chain transition

2 Sep 2022

From supply issues to price surges, the impacts of the Russo-Ukrainian war on the global food value chain are significant. What pain points has this crisis exposed, and what should the response be?

Read more 
Canadian authorities report titanium dioxide is safe in food, in the face of EU ban

Canadian authorities report titanium dioxide is safe in food, in the face of EU ban

1 Sep 2022

Health Canada joins the UK’s Food Standards Agency in concluding that titanium dioxide is ‘safe to consume’, putting it squarely at odds with recent safety assessments in Europe that led to a ban of the ingredient.

Read more 
Most food businesses are placing inflationary costs on consumers, survey finds

Most food businesses are placing inflationary costs on consumers, survey finds

31 Aug 2022

Consumers are being hit with product price increases as manufacturers pass on higher costs to the public. But with some major food manufacturers registering profits, is a public backlash on the cards?

Read more 
Hyperlocalisation promotes food system resilience and diversification

Hyperlocalisation promotes food system resilience and diversification

30 Aug 2022

Climate change action and new technologies are driving a rise in hyperlocalisation throughout the global food chain, improving the industry’s adaptability and ability to meet consumer demands for greater choice.

Read more 
Tackling the rise of antimicrobial resistance

Tackling the rise of antimicrobial resistance

29 Aug 2022

As the 2030 goal of halving antimicrobial use edges closer and a 2022 regulation is brought in to reduce antibiotic use on farm animals, the food industry is loudening its calls for action amid the increasing resistance to antimicrobials.

Read more 
WWF report slams Europe’s damning effect on the global food system

WWF report slams Europe’s damning effect on the global food system

26 Aug 2022

Europe may not be helping, but in fact hindering the global food system by inciting gross environmental, societal, and fiscal harm, a recent WWF report shows. Consumers however are hungry for change.

Read more 
Researchers develop automation method to isolate volatile food ingredients

Researchers develop automation method to isolate volatile food ingredients

25 Aug 2022

A research team in Germany has applied automation to a long-standing method to isolate volatile food compounds, creating advantages over the existing manual process, which include food manufacturers’ potential to increase yields and lower the contamina...

Read more 
New partnership strives to improve cocoa farming in Ivory Coast

New partnership strives to improve cocoa farming in Ivory Coast

24 Aug 2022

Conseil du Cafe-Cacao and IDH’s Sustainable Trade Initiative launch a new programme, Cocoaperation, to support cocoa farming and improve the livelihoods of cocoa producers.

Read more