This strategic acquisition allows Innophos to penetrate high-growth markets aimed at health-conscious consumers. The deal unites Innophos, which has traditionally specialized in high-margin specialty grade phosphates for processed meats, baked goods, dairy, and beverages, with Novel Ingredients, a supplier of specialty ingredients including botanicals, proteins, amino acids, and other health-focused components. By acquiring Novel, Innophos diversifies its product range and positions itself to capitalize on emerging trends in health, wellness, and nutrition, aligning perfectly with the company’s Vision 2022 strategic objectives. The newly combined entity will generate 60% of its sales from food, health, and nutrition, moving the company closer to its goal of 75%.
“Our status as a leading provider of essential ingredient solutions is further enhanced by our combined technological innovations, an expansive product lineup, and the addition of Novel’s skilled and dedicated team,” stated Innophos CEO Kim Ann Mink. “Furthermore, this partnership aligns Innophos more closely with significant consumer megatrends, such as health and wellness, energized aging, and clean labels.”
As consumers increasingly seek to derive more health benefits from their diets, food and beverage manufacturers are reformulating existing products and embarking on new product developments that emphasize functional advantages. There is significant interest in areas such as plant-based ingredients for immune health, added protein for sports nutrition, and omega-3 fatty acids for cognitive health. The acquisition of Novel positions Innophos to better address the evolving demands of a consumer packaged goods sector focused on enhancing health. Additionally, with the inclusion of calcium citrate and omega-3 fatty acids in their offerings, Innophos is now well-equipped to meet the growing consumer demand for health-oriented products.