After months of speculation, Kerry Group CEO Edmond Scanlon has revealed the first official details of the €800m joint venture being negotiated between Kerry Group and Kerry Co-op.

Scanlon told investors this week that Kerry’s primary dairy business has annual revenues of €900m, but said profit margins were “much lower” when compared to Kerry’s main taste and nutrition business.

His comments indicate the profit margin in Kerry’s primary dairy business is likely to be in the region of 4% to 9%, meaning annual profits could range from €45m to €80m.

The Kerry Group boss said negotiations with Kerry Co-op are still at an early stage and hinted it would be much later in the year before any deal might be agreed.

Scanlon made the comments after Kerry Group reported a 12% fall in profits for 2020, while the company’s share price has fallen 8% in the last week due to heightened investor uncertainty.