Kerry North America CEO talks business strategy, GLP-1 meds and dairy innovation

It’s been a particularly busy few months for Kerry Group, the company having announced it would divest its dairy consumer division in late 2024 and focus solely on its taste and nutrition solutions in the future.

At the start of 2025, changes took shape at leadership level too, with Oliver Kelly named group chief commercial officer; Peter Dillane appointed president and CEO of Kerry APMEA, and John Cahalane becoming president and CEO of Kerry North America.

With the company’s Taste and Nutrition division continuing to perform strongly, according to the group’s preliminary FY24 results, we chatted with Kerry North America’s new CEO about the things to come in 2025.

DairyReporter: In Q3 2024, the Americas region delivered good broad-based volume growth led by snacks, bakery, and beverage; with Mexico leading growth in LATAM. What are the key market, regulatory and consumer trends that will inform your strategy for the region in 2025 and beyond?

John Cahalane: I am thrilled to be back here, especially during such a dynamic and rapidly evolving marketplace. This year is filled with opportunities as consumers and governments increasingly focus on health and nutrition, areas where Kerry excels. With changing regulations and environmental landscapes, our approach positions us to make a significant positive impact on people and the planet.

Kerry is well-positioned to lead in the beverage market, with consumers seeking low-sugar, health-conscious options. This trend, driven by rising awareness and new regulations, is expected to continue into 2025.

In the snack segment, we see significant opportunities to collaborate with customers on salt reduction and healthier snacking options.

Looking ahead to 2025, we anticipate a continued embrace of the ‘premium for value’ concept, with consumers seeking elevated products at accessible price points. Our strategy includes partnering with retailers to enhance their private label offerings, positioning them as premium through authentic taste solutions, optimized nutrition, and enhanced sustainability.

We are also excited about the potential in the center-store meals, sides, and dressings categories, which are experiencing a surge in demand from younger consumers seeking convenient, high-quality meal solutions. We aim to introduce premium, on-trend taste profiles that ensure good nutrition to these booming categories.

DR: What are the key challenges and opportunities for your business in North America as you focus on taste and nutrition and away from consumer dairy? How are you going to navigate these?

JC: While Kerry has indeed divested its Dairy Business in Ireland, we remain fully committed to the dairy sector. Our technology portfolio is relevant to dairy consumers, particularly in the areas of taste and nutrition reformulation.

DR: The lines between the pharmaceutical sector and F&B are blurring. In what ways do you see these segments intertwining in 2025 in North America? What are the major challenges and opportunities for food brands looking to tap into this crossover between pharma and food? How is Kerry positioned to address these?

JC: Kerry has been at the forefront of acquiring and developing new technologies, investing in clinical research for ingredients that address digestive, cognitive, and immune health needs, with a special focus on women’s and infant health. Our goal is to deliver these science-backed technologies in appealing formats, integrating them into the supplement market and enhancing them with our taste portfolio.

In today’s world, the desire for better health has never been stronger. People are looking for sustainable ways to achieve their health goals and are often tired of taking traditional supplements. Our approach is to help consumers incorporate essential nutrients into their daily diet effortlessly. This includes innovative solutions for protein intake, ensuring products are both effective and great tasting.

DR: How is the growing use of anti-obesity medications in North America starting to affect formulations in the F&B sector? How are brands addressing consumers’ weight management needs through ingredient innovation?

JC: Consumers are changing, making more healthy and nutritious choices. This brings tremendous opportunities for our customers and our business, with our innovative protein solutions, digestive health expertise, and of course our leadership in Taste.

Protein is a key focus, and our taste technology helps incorporate diverse protein sources into food and beverages while maintaining consistent, delicious flavor profiles.

DR: Your customers are putting an increased focus on nutritional profile enhancement, cost optimization and sustainability. Which one of these characteristics will be the most pressing to address in 2025 for F&B brands?

JC: Truthfully – all of them, with reformulation being the key. Consumers are concerned with inflation; reformulating to deliver increased value for customers, enhanced nutrition, and sustainability, should be a priority.

DR: How is new product development activity in the North American dairy sector shaping up? How is ingredient innovation addressing major consumer trends such as health and wellness, functionality, clean-label, and weight management across different product formats?

JC: In the dairy sector, North American consumers are increasingly looking for products that support their health while meeting specific needs, such as lactose-free or local sourcing. Dairy products are seen as an integral part of their daily diet.

Additionally, they seek products that offer added benefits, such as probiotics for digestive health or omega-3s for heart health.

DR: In the dairy alternatives segment, what are the remaining obstacles to bridging the functional, nutritional, and sensory gaps across cheese, yogurt, and other subcategories through ingredient innovation?

JC: Dairy is a fantastic product category because it’s packed with nutrients, tastes great, and is easy to enjoy. It’s perfect for today’s health-conscious consumer.

While there has been a lot of innovation in dairy alternatives, many still struggle to match the cost, nutritional quality, and flavor of traditional dairy. People love the taste and health benefits of dairy, and we innovate to create products that deliver that same experience in a sustainable, high-protein solution.

Scaling our innovations in a cost-effective way and navigating the complex world of labelling and consumer messaging are also key challenges we face.

DR: A year from now, what would you like to have achieved as part of your strategy for Kerry in North America?

JC: In a year, I aim to achieve three key objectives for Kerry in North America: growth, people development, and reputation-building.

[In terms of growth,] since the acquisition of Beatreme in 1988, North America has been a powerhouse for Kerry in terms of growth and scale. The opportunities here are unparalleled globally, not only in scale but also in the level of innovation. I’m excited to be part of the next stage of growth in this region, working with the great team we have here. The learnings and innovations from North America will be transferable across the world, further driving our global success.

[On] people development, I am honored to be working with some of the best experts in the business at Kerry. I am constantly impressed by the knowledge, courage, commitment, collaboration, and creativity of our team. When I look ahead a year from now, I want to be confident we have recognized our team, created an environment where they could thrive, and supported their personal growth.

Finally, reputation building. We aim to continually enhance Kerry’s reputation in the industry as our customers’ most trusted and valued partner and the future of sustainable nutrition. By maintaining our commitment to positive customer experiences, sustainability, and innovation, we will strengthen our brand reputation, and deliver a positive impact on people, society, our customers, and the planet.