Opportunities for Irish Dairy - Teagasc · Dairy Market Context: New consumers, new tastes 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% 1.6% 1.8% Fresh dairy products Skim milk powder

Opportunities for Irish Dairy An Industry Perspective

2 | Taste & Nutrition © Kerry 2018

Who we are and what we do

Kerry’s approach to value creation

Responding to opportunities: Recent market innovations

Content

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Kerry Group: An Overview

24,000 EMPLOYEES

135 PRODUCTION LOCATIONS

€18bn ENTERPRISE VALUE

RD&A Locations & Commercial Hubs 64

Regional Technology & Application Centres 6

Global Technology & Innovation Centres 2

Naas

Beloit

Campinas

San Juan del Rio

Durban

Shanghai

Singapore

Bangalore


40+ Years of Strategic Evolution


Taste & Nutrition

Leading to Better

The industry’s leading, globally-connected Taste and Nutrition company, operating with a local, proactive

entrepreneurial mindset


40+ Years of Strategic Evolution 1972 –

Established as Dairy Co-Op

Vertically Integrated

20% of Irish Supply

Over 1 billion+ litres of

milk

Our heritage in dairy

Kerry Group has a broad dairy portfolio

PRIMARY DAIRY

CHEESE DRY DAIRY INGREDIENTS

DAIRY FLAVOURS SPREADS

PROTEINS NUTRITIONAL INFANT BASES

CANNED INFANT

FORMULA UHT DAIRY


What Makes Kerry Different? A unique set of dairy capabilities

TASTE

NUTRITION PROCESSING

Taste

• Fermentation

• Encapsulation

• Compounding

• Reaction

• Extraction Unique Delivery Solutions

Nutritional Benefit

• Lower fat and saturated fat

• Protein enhancement

• Salt reduction

Processing & Forming

• Spray drying

• Dry blending

• Pasteurisation/UHT

• Natural cheese manufacturing

• Wet processing

• String cheese


What Makes Kerry Different? In-market expertise

Development of a Global Technology and Innovation Centre Infrastructure

.

Model for Growth

Discover Kerry

The Taste & Nutrition Company

Discover Kerry The Taste & Nutrition Company


We bring value-add dairy ingredients to many categories…


Our Ingredient Technology & Application Capability Underpins the Business

Cheese Powder Other Dairy Powders Processed Cheese UHT Bases


Our Innovation Model

Consumer Market Insight

Food & Beverage Consumer Products

Application Solutions &

Expertise

Product Technology & Process Expertise

Fundamental Science

Scientific Research

Responding to Opportunities: Recent market innovations


Dairy Market Context: New consumers, new tastes

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

1.4%

1.6%

1.8%

Fresh dairy products Skim milk powder Whole milk powder Butter Cheese

Dairy Demand Growth 2016-2025

Developed Markets Emerging Markets

Demand growth strongest in emerging markets

Source: OECD FAO Agricultural Outlook


Combining trends in cold-brew coffee, with strong demand for dairy flavours, suiting local market tastes in Indonesia

Cold-brew coffee; with mascarpone foam

Up to 40% Fat Reduction & 20% Calorie

Reduction

DairySource

Hyfoma™

Hydrolysates of dairy and plant proteins,

which can be used to fully replace egg white

and gelatine in confectionery applications

Ultranor™

A dairy protein product range

designed to enhance the textural attributes of nutritional bars and

provide longer shelf life stability

Kerry’s Grass-fed Dairy Protein


Improved Nutritional Value of Grass Fed Dairy*

1. Dhiman TR, Anand GR, Satter LD, Pariza MW. Conjugated linoleic acid content of milk from cows fed different diets. J Dairy Science. 1999;82:2146-2156.

2. Daley CA, Abbott A, Doyle PS, Nader GA, Larson S. A review of fatty acid profiles and antioxidant content in grass-fed and grain-fed beef. Nutrition J. 2010; 9:10.

http://www.nutritionj.com/content/9/1/10

3. O’Callaghan TF, Hennessy D, McAuliffe S, Kilcawley KN, O’Donovan M, Dillon P, Ross RP, Stanton C. Effect of pasture versus indoor feeding systems on raw milk composition and quality

over an entire lactation. J Dairy Sci. 2016;99:9424-9440. doi: 10.3168/jds.2016-10985.

Higher Conjugated Linoleic Acids1-3

Higher levels of Beta Carotene2

Optimal ratio of omega-6 to omega-3

fatty acids2,3

Higher levels of vitamin E2

http://www.nutritionj.com/content/9/1/10


Connecting with Food: The Growth of Grass-fed

Consumers have become more invested in the origin or “backstory” of their foods

Between 2014-2016, the number of global products launched described as ‘grass fed’

or ‘pasture fed,’ increased by 245%

“Grass-fed” has seen a 42% dollar growth from 2015-2016

“Grass-fed” has seen 215% growth on menus over the past 4 years

Sustainability and Quality Assurance is Key

Kerry: Creating opportunities for Irish milk

Thank You

Documents

Opportunities for Irish Dairy - Teagasc · Dairy Market Context: New consumers, new tastes 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% 1.6% 1.8% Fresh dairy products Skim milk powder