Kerry Group invests €36m in R&D centre in the US

KERRY Group has completed a €36 million research and development centre in the US. Based in Beloit, Wisconsin, the new operation will provide the basis for the growth of Kerry’s ingredients and flavours business model and lead to future acquisitions, the group said.

The 23,225 sq m (250,0000 sq ft) innovation and commercial centre was officially opened by governor of Wisconsin Jim Doyle. It will support Kerry’s approach to meeting customer-specific needs in the US food and beverage industries. Its aim is to provide industry access to all Kerry ingredients and flavour technologies.

In today’s rapidly changing markets and evolving consumer demands companies have to be vigilant regarding product innovation and the “development of cost effective product solutions and menu offerings”, he said.

Kerry’s approach to innovation capitalises on the scope of its ingredients and flavours technologies that fully support its extensive client base in the US.

The group’s focus on delivering what its clients need is a core part of the group’s strategy, he said.

To achieve that end it will work closely with its customers to ensure they have the type of product offering that consumers in today’s exacting markets need and want, he said.

Such an approach “creates real value for our customers” by delivering product consumers want that is also cost effective.

The new centre will be “a key differentiator in helping all major food and beverage processors and food service providers in the US to deliver the right product to the US consumer.

The venture will help the group to step up a gear in this major market for the group, Mr McCarthy said.

It will also provide for scalable growth of Kerry’s ingredients and flavours business model and facilitate acquisition integration,” he added.

In a separate report, the Kilkenny-based Glanbia, which is active in the US dairy sector is expected to report an operating loss in Ireland of about €9m in the current year despite aggressive price reductions in raw milk prices to producers.

In a new note on the business NCB Stockbrokers said it was forecasting an improvement in 2010 to break even.

“However, in the absence of a recovery in markets in 2010, Glanbia will face another year of losses in Ireland as well as the prospect of contraction in its supply base because of sustained low prices at farm level”.

A repetition of the 2009 loss in 2010 would reduce NCB’s earnings per share forecasts of 31.3c by 8.5% to 28.6c.