Health and nutrition top priorities for food companies, says Kerry chief
The group's ability to create and produce lifestyle and nutritional foods, meeting consumers' demands for health and convenience, helped it achieve a strong performance, in 2003, he added.
Replying to questions at the group's AGM in Tralee, Mr Friel described the group as a 'well-oiled machine' which saw further opportunities in an enlarged EU and China, where it hoped to start manufacturing this year. Kerry now has the number one spot globally in food ingredients, with US turnover moving towards $1 billion.
Around 100 shareholders at the meeting, were also told by Mr Friel that he was looking forward to a good out-turn for the full year. Referring to the group's €665 million investment in acquisitions so far this year, he said it had extended its food ingredients platform to bio-ingredient and pharma-ingredients applications.
Quest Food Ingredients was the biggest acquisition, at $225 million. The company is a leading player in serving pharmaceutical, culinary, snack, bakery, dairy and confectionery markets worldwide.
He also said the acquisition of another US firm, Manheimer, had brought Kerry into a new business fragrances for the home, environmental, personal care, household and industrial product areas.
In the European and British markets, demand for convenience foods continued to increase, with Kerry businesses performing well and launching new products.
Mr Friel reported that, in Ireland, Denny's consolidated its market leadership in sausage, rasher and pre-cooked meats.
Also, Charleville achieved brand leadership in the home natural cheese market for the first time, while Low Low cheese was also successfully established in the low-fat sector.
Kerry, which now employs 19,000 people worldwide, had a €3.7 billion turnover, in 2003, reflecting growth of 4.6%. Operating profit was e308.5 million, a 7.6% increase.
About 36% of turnover was in Ireland; 34% in the rest of Europe, 26% in the Americas and 4% in the Asia/Pacific region.
