Decision Nº M/04/014 from Competition and Consumer Protection Commission, 2004-04-07

CourtCompetition and Consumer Protection Commission (Ire)
PartiesICI,Kerry Group
Date07 April 2004
Decision NumberM/04/014
StatusPreliminary investigation (Phase 1)
Decision Date07 April 2004
1
Determination No. M/04/014 of the Competition Authority, dated 7th
Notification No. M/04/014 – Kerry Group plc Proposed Acquisition of part
of Imperial Chemical Industries plc’s Quest Foods Division
Introduction
1. On 8th March 2004, the Competition Authority, in accordance with Section 18
(1) of the Competition Act, 2002, (“the Act”) was notified, on a mandatory
basis, of a proposal whereby Kerry Group plc (“Kerry”) would acquire the
Food Ingredients Business (the “Business”) of Imperial Chemical Industries
plc (“ICI”), which is part of the ICI Quest Foods Division (“Quest Foods”).
The Parties
2. Kerry is a public limited company incorporated in Ireland. Kerry is mainly
active in the consumer foods sector in Ireland and the UK. Also, Kerry is
active in the global food ingredients and flavour sectors, in which it is
engaged in the production and sale of the following categories of food
ingredients:
(i) Flour based crumb/batters/coatings;
(ii) Seasonings;
(iii) Savoury meat ingredients;
(iv) Dairy based ingredients;
(v) Cures and yield improvers;
(vi) Vegetable derived textured and functional proteins for use in
ready meals, meat processing and pet foods;
(vii) Concentrates/improvers/soya flours; and
(viii) Fruit based ingredients.
Furthermore, Kerry is active in the production and distribution of certain
proteins and hydrocolloids, which form part of its activities in (vi), above.
Specifically, Kerry produces non-hydrolysed proteins, which are supplied to
the dairy and nutrition industries. Kerry’s hydrocolloid products are derived
from gum arabic and are largely produced for and supplied to the non-
alcoholic carbonated soft drinks sector. Kerry’s protein and hydrocolloid
products yield a combined turnover of [] in Ireland.
3. ICI is a public limited company incorporated in the United Kingdom. The
Business forms part of Quest Foods, which is the foods division of ICI. The
Business comprises of nine major sourcing units organised into four global
regions: Europe, North America, Asia Pacific and International (mainly Latin
America and Africa). Its sourcing unit in Ireland is located in Cork. The
Business is active in the production and supply of the following product
groups:
(i) Emulsifiers: Serve the bakery, dairy and confectionary
sectors. They are used for bonding oil and water to create
certain textures in products. This product group generates a
turnover of [] in Ireland.
(ii) Proteins: These involve mostly the production of protein
hydrolysates that are supplied to the pharmaceuticals
sector. There are also protein texture products that are

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