Kerry has added to its growing portfolio of taste and ingredients businesses in Asia with the acquisition of Shanghai Greatang Orchard Food for an initial consideration of €91 million.
The Iseq-listed, Tralee-headquartered food giant has been strengthening its position in Asia’s rapidly expanding food market, a strategy that has been helped by China abandoning its zero-Covid policy and reopening its borders earlier this year.
Kerry recently opened of a new state-of-the-art taste manufacturing facility in West Java, Indonesia.
The Irish company said it acquired 100 per cent of the share capital of Shanghai Greatang Orchard Food. The Shanghai-based food business employs approximately 120 staff. Its full-year revenue for 2023 is expected to be RMB300m (€38 million).
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The deal involved an initial consideration of 720 million renminbi (€91 million) but it also includes potential additional payments of up to RMB780 million (€99 million) payable across the next three years “if certain performance conditions are met across each of these years”, Kerry said.
“Greatang is a leading producer of local authentic and innovative taste solutions for local food service chains and the meals and snacks markets,” the company said.
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“This acquisition strongly complements Kerry’s leading authentic taste position in China, broadening and deepening its capability and portfolio of local taste solutions in the region, most notably in the significant food service hotpot market,” it said.
“Greatang’s expertise strengthens and expands Kerry’s strategic positioning and capability as an innovation partner for local and international customers in China,” it added.
Kerry has been offloading traditional, noncore businesses to concentrate on a range of fast-growing areas, including authentic taste, food preservation technologies, health and bio-pharma ingredients; and plant-based meat alternatives.
It recently sold its UK and Irish consumer foods’ meats and meals business – which includes the Denny, Galtee and Richmond brands – to US poultry producer Pilgrim’s Pride for €819 million.
A deal to sell its Dairy Ireland unit, which has processing plants in Listowel, Charleville and Newmarket and brands such as Dairygold, to Kerry Co-op has long been mooted but has so far failed to materialise.
