Main own plant-based brands
Announced plans for plant-based sausage under its Richmond brand.
- Kerry is primarily an ingredients company; only 20% of their revenues are derived from consumer foods division, but this part of their business is exposed predominantly to meat and dairy based products.
- Kerry’s Taste and Nutrition business is positioned to fully leverage the growth of the plant-based market. The company has invested heavily in plant protein sources and solutions in order to offer their B2B customers a variety of alternative protein choices by protein type and taste experience. On the innovation side, the company has only recently announced plans to develop plant-based options for their consumer brands, which feels like a missed opportunity in terms of leveraging their T&N business.
- On the sourcing side, the company’s animal protein strategy focuses on some sustainable sourcing initiatives including feed. We did not find specific discussion on issues related to enteric fermentation and manure management; however, the company has indicated to FAIRR that Kerry is looking possible solution for methane reduction from enteric fermentation and that manure management is one of the key levers being looked at as part of their carbon reduction strategies at the farm level.
- We encourage the company to strengthen its sustainability work in animal proteins as well as build a more strategic plan to transition its product portfolio (through targets for their consumer foods division, where they most exposed) to ensure any exposure to animal proteins is in line with a low-carbon strategy.
Thank you for sharing this assessment and providing us with the opportunity to comment. Please see below for our feedback.
- We believe that this is of critical importance in any overall assessment of Kerry Group. We acknowledge that a significant amount of our consumer foods portfolio is linked to animal protein, however, the proportion of the Group’s total revenue derived through our consumer foods division was 20% in 2018 and this figure continues to reduce. In our opinion, the assessment is not always reflective of this position for each indicator e.g. consumer engagement.
- Kerry is engaged in looking at the sustainability of feed used in the production of the animal protein we source and in 2018 became a member of the UK Roundtable on Responsible Soy. It’s worth noting that Kerry milk suppliers use a grass based production system which means relatively small levels of concentrates are fed in this supply chain. We are also examining new solutions that offer a potential for significant reduction in methane produced from enteric fermentation, but there is some work to do to validate the efficacy of these solutions within a grass based production model. Manure management is one of the key levers being looked at as part of carbon reduction strategies at farm level and forms part of the ‘Carbon Navigator’ tool under Origin Green, which is used to illustrate practical ‘win-win’ ways for farmers to reduce their footprint.
- As a predominantly B2B business, we position ourselves to meet the needs of our customers and this is reflected in many of our external statements. We acknowledge the contribution of animal protein to the Group’s overall environmental footprint and understand that protein diversification can play a role in helping to address this. At Kerry we have a comprehensive capability that supports our customers in meeting this growing demand with a quality product that supports a shift to more sustainable diets.
- The Group has developed a defined marketing strategy for our b2b promotion and communication. Labelling and product placement is something we will support our customers on.
- While the business does track data on animal proteins and its exposure to same, not all of this information is placed in the public domain due to commercial sensitivities. We convey this information selectively and with qualifications on the robustness of any estimates or assumptions made.