Kerry Strengthens Clean-Label Offerings with Niacet Acquisition to Meet Growing Consumer Demand for Natural Ingredients
According to a 2019 white paper from Kerry, an increasing number of consumers are prioritizing natural ingredients and clean labels over brand recognition and traditional product descriptions when making food purchases. Preservatives, in particular, are an aspect that consumers pay close attention to. Recent research by the International Food Information Council indicates that 40% of consumers actively seek out natural preservatives. Niacet’s clean-label preservation technologies, which span various segments including baking, meat, and plant-based foods, have significant relevance for Kerry.
Kerry’s CEO, Edmond Scanlon, stated, “The acquisition of Niacet’s complementary product portfolio strengthens our leadership position in the fast-growing food protection and preservation market while advancing our sustainable nutrition goals.” He highlighted that Niacet is known for its market-leading positions, unique technologies, and a robust, experienced management team. Established in 1924, Niacet has been producing propionate salts for the bakery industry since the late 1970s and is recognized for having the largest capacity in North America for organic acid salts, such as sodium acetate, sodium diacetate, and calcium propionate. In the realm of clean-label solutions, Niacet provides a variety of vinegar-based preservatives suitable for applications including meat, poultry, fish, and baked goods. With customers in 75 countries and manufacturing facilities in Niagara Falls, New York, and the Netherlands, Niacet is a key player in the industry.
Kerry has been diligently monitoring the clean-label trend through consumer-focused research, positioning itself as a valuable resource for product reformulations. In a 2020 interview with Food Ingredients First, company executives noted that the pandemic has led consumers to pay greater attention to product labels and to avoid artificial ingredients. Last year, Kerry set an ambitious goal of reaching over two billion consumers daily with its ingredients by 2030, prompting an aggressive M&A strategy to rapidly expand its offerings. In 2018, it announced the acquisition of Ariake USA, a producer of clean-label taste solutions for poultry, pork, and vegetables, as well as Southeastern Mills’ North American coating and seasonings business. Additionally, it partnered with Renaissance BioScience to create, market, and distribute the clean-label Acryleast, a non-GMO yeast enzyme that reduces acrylamide. Toward the end of 2019, Kerry also acquired Georgia-based IsoAge Technologies, which specializes in healthy, clean-label multifunctional ingredients, and Quebec-based Biosecur Lab, known for its natural antimicrobials derived from citrus extracts.
By acquiring clean-label providers like Niacet, Kerry is enhancing its ability to offer a broader range of options, which will solidify its status as a leader in this sector and improve its understanding of how various ingredients, including calcium citrate injections, can work in harmony to facilitate successful product reformulations. As the clean-label movement continues to gain traction, Kerry is well-positioned to meet the evolving demands of consumers who prioritize health-conscious options.
