ADM and Kerry each invest in microbiome as gut health demand booms

06 Nov 2020 --- As gut health-elevating platforms become increasingly lucrative, Kerry and ADM have both made major moves in the microbiome space. ADM Ventures, ADM’s corporate venture capital arm, is investing in Seventure’s Health For Life Capital (HFLC) Fund II. Meanwhile, Kerry is set to acquire Canadian probiotic company Bio-K Plus International.

“In the fascinating microbiome field, the more we know, the more we learn,” Isabelle de Cremoux, CEO of Seventure, tells NutritionInsight.

“Microbiome innovations impact many industries, including food, nutrition, pharma, food retail, diagnostic, personalized nutrition and precision medicine. They provide tremendous opportunities for growth,” she adds.

The companies have not disclosed the amount of ADM’s “significant” investment. However, Cremoux shares that the HFLC fund is oversubscribed compared to its initial targets and is now worth over €230 million (US$273 million). 

HFLC is based in Paris, France, and is dedicated to solutions for health, nutrition, microbiota and digital health. “It is the biggest fund in the world with this investment strategy,” Cremoux says. ADM is focused on looking at “new and innovative solutions.”

ADM eyes new microbiome solutions
ADM has worked closely with the Seventure team since 2018 to identify opportunities with microbiome solutions. 

“These can ultimately help with dietary supplements and food and beverage applications to serve as functional or proactive solutions,” says Darren Streiler, managing director of ADM Ventures. 

“We believe Seventure can help meet the long-term demand we see as the result of the convergence of food and pharmaceuticals and consumers looking more towards bioactives and nutrition for wellness solutions,” he adds.

He continues that with a better understanding of how the microbiome ecosystem works, ADM can develop functional ingredients for dietary supplements and F&B solutions to improve overall health.

The company is focused on looking at “new, innovative solutions” that can lead to a more balanced bacterial system in your digestive tract and can better overall health. 

Last month, ADM announced plans to construct a new facility in Spain to increase its probiotics production five-fold. It is also highlighting the gut microbiome as a major trend for 2021. 

Kerry snaps up Bio-K Plus
Reflecting the growing number of consumers who are turning toward functional foods, beverages and supplements, Kerry is expanding its probiotic portfolio with the acquisition of Bio-K Plus. 

“Bio-K Plus has many well-established valued customer relationships throughout the US and Canada. Kerry is keen to build on this strong customer loyalty and is committed to retaining and growing the existing Bio-K Plus brand, customer base and business,” Jordan Miller, strategic marketing director of proactive health at Kerry, tells NutritionInsight.

Bio-K Plus currently offers clinically-supported probiotic beverage and supplement applications in the North American market. It has 134 employees and has one facility in Quebec, Canada, and another in California, US.

The products are formulated with three proprietary strains of probiotics, which have confirmed efficacy for a range of therapeutic benefits. These include preventing side effects resulting from antibiotic use.

“Research has shown that consumers are increasingly looking for nutritional benefits when purchasing food and drink. Products that contain probiotics that improve gut health are specifically in demand,” says Neil Cracknell, president of Kerry Applied Health & Nutrition.

Given the growing emphasis on consumer desire to support overall health and wellness, Miller expects the desire for functional foods to continue as consumers look to incorporate products with added functionality into their everyday diets and lifestyles. Bio-K Plus’ products are formulated with three proprietary strains of probiotics.

Gut health takes center stage
According to Innova Market Insights, Supplements are now the leading market category for new launches tracked with a digestive health claim. In 2019, they accounted for 29 percent of launches, in comparison to just 16 percent in 2015. 

With a CAGR of 22 percent (2015 to 2019), supplements for gut health look set to continue to dominate for the time being.

However, Snacks is the fastest growing category with a 26 percent CAGR (2015 to 2019). Other categories to watch are Sauces & Seasoning (13 percent CAGR), Soft Drinks (11 percent CAGR) and Sports Nutrition (11 percent CAGR). 

In June, a Kerry expert spoke to NutritionInsight about how COVID-19 has been shaping immunity demands, with preventative approaches becoming more popular. The company has also developed a botanical range of products with “health halos.”

By Katherine Durrell