Kerry Group Swot Analysis

Kerry Group today is a world leader in food taste and nutrition serving the food and beverage industry, and a leading supplier of added value brands and customer branded foods to the Irish and UK markets.

The Group has grown organically and through a series of strategic acquisitions in its relatively short history, from the establishing of the company’s first dairy and ingredients plant in Listowel, (Ireland) in the year of 1972. It has been able to achieve sustained profitable growth with current annualized sales of approximately €5.8 billion.

By utilizing the core strengths, gaining synergy from combining technologies and taking a systems approach to opportunities, Kerry excels in value creation for the customers through integrated customer-focused

Kerry Group is quoted on the stock exchanges in London as well as Dublin. It has a market capitalization in excess of €7 billion and also possesses some 30,000 shareholders. Kerry’s Board, both the management and suppliers have exclusively worked to grow the Kerry organization and lead its evolution through three separate corporate entities;

(A) Private Dairy Processor

(B) Dairy Co-operative

(C) Public Company

Ownership of the company, then known as North Kerry Milk Products Ltd (NKMP) was shared with the Dairy Disposal Company holding 42.5%, the Federation 42.5% and Erie Casein 15%. The linkage to Illinois based Erie Casein provided a guaranteed market for the edible casein output, which was a new product in the dairy market for Ireland. In the very initial year NKMP processed around 16 million gallons of skim milk and produced 2,000 tonnes of casein with the help of about 40 people and reported profits of €127,000 on a turnover of €1.3 million.

3.

In the period 1974 - 1979 Kerry expanded its milk business in a similar fashion to other dairy Co-ops but did so on a consistently profitable basis. The entry of EEC made the milk prices better, increase in milk volume and improved farm incomes in Ireland. Kerry Co-op grew organically only with the help of milk available to it, processing it and having all kind of requirements in terms of inputs and on-farm services. There was an increase of milk supply from 67 million gallons to 87 million from 1974 to 1978.

However in 1979 everything changed for Kerry Co-op when the county was chosen as a pilot area for a bovine disease removal scheme. In addition to that milk production was further depressed due to wet summer weather in 1979 and in 1980, which meant that Kerry lost almost 20% of its milk supply. This was very important that it happened at a time when the Co-op was in the course of completing a €18 million capital expenditure program at the NKMP plant in Listowel.

7. Growth Strategy