Formed in 1997 by the merger of Avonmore and Waterford Foods, Ireland's largest dairy processor did not get off to an auspicious start, with many analysts writing it off as one of the biggest corporate disasters of the decade as its debt mountain soared and the profit warnings came in thick and fast.
Ten years and several disposals later, however, those very same detractors are now hailing Glanbia (Gaelic for 'pure' or 'clean' food), as "the food equivalent of the knowledge economy"
As the man upon whom many of their hopes are pinned, Glanbia Nutritionals' chief executive Hugh McGuire, is only too aware of the weight of expectation sitting on his shoulders, given that he is in charge of the one bit of the business everyone seems to think will generate the biggest profits.
But he's also keeping a level head. "There is no question that there is a significant business opportunity in supplying science-based solutions in weight management, heart health, infant, clinical and sports nutrition," says McGuire. "But when you look at the business plans of some of the companies in this space you see there is also far too much hype and expectation. There is also a lot of interest from private equity and that's pushing up valuations to unrealistic levels."
So what is McGuire offering that rivals are not? Like many companies in this sector, Glanbia has a broad portfolio of ingredients from a natural milk calcium and mineral complex, to vitamin and mineral premixes and olive extracts, he says. However, it is still best known for its whey protein isolates, whey protein concentrates, whey fractions and milk proteins.
"Whether due to Atkins or something else, people are starting to look at protein in a new light," says McGuire. "Whey protein isolate in particular is moving beyond performance nutrition into the mass market. It's for weekend warriors now as well as elite athletes. You can even buy tubs of it in the supermarket."
Perhaps the biggest potential money spinner, however, is Glanbia's patent-pending ingredient Prolibra, which it claims is more effective than standard whey-derived products because of bioactive peptides in its formulation that lift it above standard intact proteins.
The subject of three clinical trials demonstrating its ability to help accelerate fat breakdown, reduce fat deposition and maintain lean body mass, Prolibra is also considerably better equipped than many other products in the functional ingredients market to stand its ground when the inevitable shakeout comes, and fat busting products not supported by sound science will be exposed, McGuire says.
The fact that Glanbia bosses recently shelled out a cool ?15M on a state of the art research and development (R&D) centre in Kilkenny, packed with nutritionists and food scientists, is also a fairly bold demonstration of their belief that McGuire's division is the engine room of the business.
As for where the growth is going to come from, emerging markets will be key, with offices recently opening in Shanghai, Singapore, Argentina and Brazil, and a brand new factory being built near Shanghai to service the Asia Pacific market.
As to the speed with which his superiors can expect to see a return on all this investment, it's hard to say, says McGuire. "While the competition is hotting up, the market is still in its embryonic stages, and the clear winners haven't been identified.Those best placed to win, however, are companies with intellectual property and science-based solutions to consumer needs, not those simply supplying ingredients."
Glanbia Nutritionals is not going down the ingredients branding route adopted by some big hitters such as Cargill and Orafti. With long stints at Nestlé and Leaf on his CV, McGuire knows how much it costs to build and maintain successful brands, and will leave that to the manufacturers: "I'm here to supply them with solutions, not to compete with their brands."
Having spent a further three years at McKinsey & Co as a strategy consultant before joining Glanbia in 2003, he also knows a thing or two about building businesses, helping broker deals with German nutrient delivery systems company Kortus Food Ingredients Services, and UK-based bar and beverage innovator Pro-Fibe Nutrition, since taking the helm.
When he joined, "It was me and two others," points out McGuire. "Now there are 120 people under me." Exciting though jetting off to Shanghai one week and Brazil the next might sound, the one downside of the job is the amount of time spent in airport lounges. McGuire feels his stress levels rising every time he approaches the security gate. "I seem to spend half of my life in one airport or another, which isn't ideal, but that's the nature of working for a global business."