Foods

Beyond dairy: the next frontier

  • Sectors : Foods
  • Companies : DSM | Symrise | Kerry Group | Danone

Ratings

Ratings and price correct at time of issue

Company Rating Date Previous Rating Date Closing Price
DSM OUTPERFORM 11/02/15 Neutral 16/07/14 8080c
Kerry Group OUTPERFORM 30/06/09 N/A N/A 8620c
Symrise OUTPERFORM 21/06/12 N/A N/A 6612c
Danone NEUTRAL 09/02/17 Outperform 16/04/15 6850c

DAVY VIEW

Starbucks’s new range of Evolution Fresh Daily Probiotic smoothies will reach shelves in February 2018, signalling the arrival of probiotics to fast moving consumer goods (FMCG) categories beyond dairy. Largely driven by acquisition, capabilities in probiotics have evolved from specialist players (Chr Hansen, Probi, Danisco and Ganeden) to value-add ingredient solution providers (Kerry, Symrise and DSM). A broadening of the application canvass beyond dairy presents a sizable and immediate opportunity with demand pull and positive pricing attributes. While technical and regulatory hurdles remain (shelf-life, stability), we are optimistic on the burgeoning revenue opportunity for more integrated players.

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Feb 6 2018, 06:45 GMT

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