Kerry makes largest Southeast Asian capital investment yet with US$36M taste facility in Indonesia

20 Apr 2021 --- Global taste and nutrition company Kerry is increasing its footprint in Southeast Asia by building a second manufacturing facility in Karawang, Indonesia. The “state-of-the-art” facility is being built from the ground up and set to be operational in late 2022. It represents Kerry’s largest-ever capital investment in Southeast Asia at €30 million (US$36 million).

“The F&B industry is witnessing high single-digit growth in Southeast Asia. With a sizable aspirational consumer base of over 700 million people, we have a market that is not only large but also growing steadily,” Antoine Nourrain, general manager, Taste APMEA at Kerry, tells FoodIngredientsFirst. 

The facility will enable Kerry to build closer partnerships with its customers, deliver stronger collaboration on taste and a faster response to the needs of the Indonesian and Southeast Asian markets, he adds. 

Enabling taste 
The “world-class” facility will be Kerry’s first greenfield investment in Southeast Asia, its second manufacturing site and third facility in Indonesia. It will encompass a flavor manufacturing site along with a sampling hub and a research and development pilot plant. 

Beverages and snacks are among the fastest-growing end-use markets for Kerry in Southeast Asia.A wide range of flavor technologies will be manufactured in Karawang, allowing this new site to support Kerry’s fast-growing taste business and its F&B systems across all food categories. 

The company highlights beverages and snacks as being among the fastest-growing end-use markets for Kerry.

An eye for Southeast Asia
The new investment is in line with Kerry’s 2025 strategy to invest in high-growth markets and demonstrates Kerry’s commitment to its customers in Indonesia and the Southeast Asia region.

“The Southeast Asian taste market is valued at circa €900 million (US$1 billion) and growing with a huge opportunity for further development and innovation,” says John Savage, CEO Global Taste at Kerry.   

The investment is set to strengthen Kerry’s competitiveness in the region as it works with its local customers to deliver authentic-tasting products to the market. 

“Taste is always at the center of purchase and consumption decisions made by consumers. Catering to locally relevant taste is the key to addressing consumer needs,” says Nourrain. 

“For example, a citrus preferred by consumers in Europe would be different than citrus preferred by consumers in Southeast Asia. Creating locally relevant and pleasing taste is our focus. Our new facility will help us deliver this.” 

This February, Kerry acquired Jining Nature Group to expand its authentic savory taste capabilities in China.Sustainable nutrition
Taste will play an important role in enabling the transition to healthier and more sustainable diets, asserts Nourrain.

“We create great-tasting products by applying natural sourcing, authentic culinary processes and an innovative approach to the science of taste,” he says. 

“Our approach has always been ‘From Food for Food.’ With vertically integrated facilities, we can create and offer products that are not only tasty and healthy but also sustainable.”

As part of its Beyond the Horizon program, Kerry aims to reach 2 billion people with sustainable nutrition by 2030, roughly double that of today. 

Looking ahead
Furthering Kerry’s sustainability strategy, the new facilities include an on-site wastewater treatment plant, in line with Beyond the Horizon criteria. 

This achieves new standards in the consumption of energy and water for the company with significantly lower CO2 emissions and no waste to landfill. 

“This new investment is made with current and future customer needs in mind,” says Nourrain. 

“Our new facility has suitable capacities for market growth. The new investment will help us with faster speed to market. A quick turnaround time with customer queries and help cater to their needs better,” he adds. 

This February, Kerry acquired Jining Nature Group to expand its authentic savory taste capabilities in China. 

Kerry also recently spotlighted functional and plant-based ingredients as top trends amid the pandemic. 

By Missy Green