Kerry Foods' move into Malaysia with its £6.6 million acquisition of food ingredients company, SDF, pleased the market. Kerry is one of the quoted companies which says it is looking in a certain direction and then does a deal. The SDF acquisition makes a lot of sense: it is a toehold in a fast growing market where demand from food processors and food suppliers such as McDonald's is expanding rapidly. With a turnover of £8 million, SDF can be built up to supply the Asian markets which Kerry currently supplies from Mexico and the US. Strong demand in their domestic markets have pushed the US and Mexican operations close to full capacity and they will soon have problems meeting demand. In addition, the acquisition brings Kerry two new ingredients, palm oil and starch. Kerry has continued its softly, softly approach with its latest acquisition. The company examines a geographical area. If it likes what it sees, it moves in with either a sales office, as it started in the US, or a small acquisition. Serious expansion follows only when Kerry is firmly entrenched in the market.