Kerry Group Case Analysis

1598 Words Apr 8th, 2005 7 Pages
The Kerry Group began over thirty years ago in the south west region of Ireland. Beginning as a dairy and ingredients plant the company has now flourished into a global leader in the food ingredients and flavor products area. Kerry Group is headquartered in Tralee, Ireland and through its manufacturing, sales, and technical centers around the world, employs over 20,000 people. The company supplies over 10,000 food, food ingredients and other flavor products to customers in over 140 countries. Kerry Group also has manufacturing and sales facilities in over 20 countries.
When Ireland joined the EEC or European Economic Community in 1973 many small dairies began to merge in order to compete with the larger dairy producing companies.
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The organization believed then and still today that if one of the elements of the equation is missing that the end result will be zero profit growth.
With the strategy the company developed in the early 1980's the company began acquiring new businesses and entering new global markets. With these new business ventures came success and the company decided to go public in 1986. With this move the Kerry Group acquired a first mover advantage by becoming the first co-operative corporation to become a publicly limited company. Kerry Group plc is listed on the Dublin and London stock exchanges. The company has a current market capitalization of over 3.4 billion euros.
As stated, in the early 1980's Kerry Group began acquiring new businesses. By acquiring new businesses this allowed Kerry to diversify and reduce risk. In 1987-88 the Group acquired the first overseas firm, Beatreme Food Ingredients, a division of Beatrice Corporation located in Jackson, Wisconsin. This began the move to Kerry's first food ingredients manufacturing plant. The Kerry Group initially developed its European food ingredients business in the dairy, confectionary, and convenience food center from the Listowel plant in Ireland and the Wadersloh plant in Germany. With the acquisitions of Eastleigh Flavors and Tingles Ltd. in 1993, the Kerry Group became a leading supplier to the greater Europe snack food and food
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