Kerry Group, the Irish food ingredients multinational, has opened its new biotechnology centre in Leipzig, Germany, where it will look to develop its next generation of nutritional products.
The hub will be a centre for the research and production of enzymes that can “increase efficiencies” in food production processes and tailor products for precise needs, it said in a statement.
Kerry Group has previously identified and commercialised enzyme strains that can remove probable cancer-causing byproducts in instant coffee and increase the shelf-life of baked goods, among other functions.
The Dublin-listed group said the new facility in Leipzig adds to its international biotech research and development infrastructure, which spans three continents and is led from its global innovation centre in Ireland.
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The German city was chosen as the location for the centre in part because of the biotech skills base and research cluster that has grown up there, Kerry said in a statement.
“Biotechnology solutions present a new horizon of innovation and opportunity for global food, beverage and pharmaceutical markets,” said Kerry chief executive Edmond Scanlon.
“Kerry’s existing portfolio of biotech capabilities, which has been built up over the past 20 years, together with this new biotechnology centre, enables us to play a leading role in bringing the next generation of discoveries in this space to market, supporting our customers, as they meet consumer needs for sustainable nutrition”.
The group has added to its biotech footprint in recent years, acquiring German biotechnology innovation company c-LEcta for €137 million in 2022. It also acquired the Mexican-based enzyme manufacturer Enmex for €62 million in late 2021.
Shares in Kerry Group have fallen by around 12 per cent so far this year, against a backdrop of soft demand across food and drink in the context of global macroeconomic uncertainty.
Kerry Group’s revenues for the six months to the end of June rose by 1.3 per cent to €3.46 billion, it said in July, while profits after tax rose to €303 million.
Kerry also said it is starting to pass on higher costs as tariffs raise the price of ingredients it uses in its supply of products to top brands.
The group sources a range of ingredients, including citrus products, coffee, garlic, peppers and Indian spices, from outside the US, where it has almost half its business. While Kerry will try to mitigate US president Donald Trump’s tariffs as much as possible, it will have to raise prices to reflect the higher costs, Mr Scanlon said.
