In a recent Food & Drink Business podcast, editor Kim Berry spoke with the new ANZ general manager for Kerry, Michelle Thomson, about the current food and beverage landscape and how Kerry is helping manufacturers navigate increasingly complex times.
Five months into her role as general manager for Kerry ANZ, Michelle Thomson is at the coalface of one of the most complex and fast-moving sectors in the food and beverage industry – ingredient formulation and application. With her background spanning sales, commercial and portfolio management, Thomson says her career has been a “winding path” that has always been driven by a single question, “why”.
“I was fascinated by why customers made the decisions they did. Not just their immediate answer, but what they truly wanted to achieve and why it was critical,” Thomson says. It’s a perspective that now underpins her leadership at Kerry, where she says, curiosity and problem-solving meet science and application.
Kerry has more than 1200 scientists across 70 technology innovation centres around the world, working on nutrition, food, beverage, and pharmaceutical ingredients and products. Kerry’s work ranges from long-term reformulation to last-minute rescue jobs.
“Our role is to help ANZ manufacturers solve their toughest formulation challenges,” she says.
While companies grapple with the twin pressures of inflation and supply chain disruption, Thomson says companies are building resilience into their supply chain not as a “nice-to-have” but as a critical operational requirement.
Beyond supply volatility, Thomson highlights a structural shift in consumer behaviour. “People are more conservative. They’re tightening wallets but still want products that are guilt-free – lower in salt, sugar and fat – without compromising taste,” she says.
This paradox – demand for both indulgence and health – creates opportunities for innovation, with Thomson citing Kerry’s work on sodium and sugar reduction technologies, such as its TasteSense solution, which enables manufacturers to reduce sugar while retaining flavour. The stakes are high: globally, one in five adult deaths is diet-related, with sodium a major contributor. At the same time, the rise of GLP-1 weight-management drugs is driving interest in higher protein and functional nutrition.
“Consumers want it all – better taste, more authentic and natural experiences, healthier options, sustainability, and affordability,” Thomson says. “Balancing these is the challenge and the opportunity.”
The wellness sector is booming, now valued at around US$1.5 trillion globally and growing at roughly 10 per cent annually, it is being fuelled by science-backed innovation, personalised nutrition and functional ingredients.
Beverages, in particular, are a hotbed. “In China, 42 per cent of Gen Z consumers are looking for drinks that support health outcomes,” Thomson says. “Collagen, prebiotics and protein-fortified beverages are surging, reflecting consumer demand for convenience with added health benefits.”
Cultural currency
She says this is where Kerry’s model of being “globally connected but locally led” comes into its own, with global expertise channelled through local hubs that can tailor innovations for local tastes and applications.
“It is fascinating science. Our R&D teams are incredibly skilled at replicating flavours and functions while addressing health and sustainability goals,” Thomson says.
Consumer behaviour is also shaped by “cultural currency” – global food and beverage fads that spark excitement, travel across markets, and then localise. Thomson cites the pistachio beverages launched by The Coffee Club in Australia, inspired by the viral Dubai chocolate craze.
“Kerry’s role is to help manufacturers bridge that gap between fad and local application. We demonstrate proof-of-concept, show how it’s working elsewhere, and then help companies adapt it to their own consumers,” she says.
Resilience and growth
Despite headwinds, Thomson is optimistic about the ANZ food and beverage sector. She references the Australian Food & Grocery Council’s latest industry report, which showed food and beverage edibles growing at eight times the rate of non-grocery categories. Growth is particularly strong in categories aligned with consumer health priorities.
“It reinforces that our industry is the engine room. It’s resilient, vibrant, and driving growth,” she says. “No added sugar claims are surging more than 40 per cent in supermarkets, while zero sugar products are growing at 14 per cent year on year,” she explains.
“Consumers won’t compromise on taste, so manufacturers are turning to companies like Kerry to help deliver healthier products that perform.”
For Thomson, the industry’s future is defined by collaboration, agility, and science-led innovation.
“Every customer wants to win consumer moments. Our job is to help them do that, whether it’s a new functional beverage, a reformulated staple, or the next viral craze adapted for local shelves,” she says.
Check out the full podcast episode here.
This article first appeared in the August/September 2025 edition of Food & Drink Business magazine.
