The surge in demand for weight-loss medications is proving a boon for Irish ingredients group Kerry, the company’s chief executive has said.
Edmond Scanlon said, contrary to predictions, the GLP-1 revolution was spurring growth across the business.
GLP-1 drugs refer to the new class of anti-obesity medications such as Ozempic and Mounjaro.
Many commentators predicted the advent of these drugs would damage traditional food and drink businesses.
RM Block
“Three years into the mainstreaming of GLP-1s, I think we can now point to the fact that it has been and will be more of an accelerator to our business,” Scanlon said.
“The prevalence of these drugs, whether you’re taking them or not taking them, ... is driving a narrative around health and wellness that is better for our business,” he said.
Scanlon noted that Kerry’s snacking business grew by 17 per cent between 2024 and 2025 and “we expect further strong growth in our snack business in 2026″.
The reformulation of snack foods to reduce sugar and salt was underpinning the strong performance, he said.
“Consumers are demanding healthier products ... and we are well positioned to help our customers provide that,” he said.
Scanlon was speaking after Kerry reported “strong” volume growth across its three business regions – Europe, Americas and Asia/Africa – while maintaining its full-year earnings guidance of 6-10 per cent growth for 2026.
The company supplies tastes and ingredients to about 25,000 food and beverage manufacturers worldwide.
It recently opened a coffee extraction business in the US, which Scanlon highlighted as a major growth area.
The company said volumes rose by 3.6 per cent in the third quarter – which was ahead of the wider market – as the company’s strategy of targeting high-growth protein and health and wellness markets drove demand.
But the weakening of the dollar against the euro led to a decline in revenue over the year to date, with an adverse currency translation of 2.5 per cent for the period.
However, the company expects the impact of exchange rates to become favourable for the rest of the year.
Kerry reported strong volume growth of 4 per cent across its Americas operation, which accounts for roughly half the company’s annual €7 billion revenue.
“Within North America, strong growth was achieved in snacks through innovations and renovations utilising Kerry’s range of savoury taste profiles and Tastesense salt reduction technologies, as well as new innovations with emerging and retail brands,” it said.
Kerry’s European division saw volume growth of 0.7 per cent, with its Europe Beverage unit seeing “good growth” supported by new beverage innovations and the performance of low- and no-alcohol products.
At the end of September, the company’s net debt was €2.4 billion. The company also announced a further share buyback scheme of up to €300 million following the completion of the current buyback.
“While macro and geopolitical uncertainty continue to impact market conditions, our strong end market outperformance highlights the strength and relevance of our strategic positioning across our markets, channels and customer base,” Scanlon said.
“Our inbuilt business resiliency positions us well through this period, and we remain strongly positioned for volume growth and margin expansion, underpinned by a good innovation and renovation pipeline,” he said.
