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

• Jurisdiction: Ireland
• Parties: ICI,Kerry Group
• Date: 07 April 2004
• Decision Number: M/04/014
• Status: Preliminary investigation (Phase 1)
• Court: Competition and Consumer Protection Commission (Ireland)
• Decision Date: 07 April 2004

1

Determination No. M/04/014 of the Competition Authority, dated 7th

April 2004, under Section 21 of the Competition Act, 2002

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