Acquiring a producer of maple syrup and natural sweeteners seems like a strategic move and timely opportunity for Hain Celestial. Clarks’ offerings not only complement Hain’s existing portfolio of organic and natural food brands, but the trend towards natural sweeteners—like maple syrup, honey, plant-based options such as stevia, and fruit-based syrups—is gaining traction as consumers increasingly seek to lower their sugar consumption. The American Heart Association suggests a recommended added sugar limit of 29 pounds annually for men and 20 pounds for women, while the USDA reported that each American consumed 128 pounds in 2016. This highlights the clear need for the nation to reduce its sugar and artificial sweetener intake, such as corn syrup. However, consumers still desire to satisfy their sweet cravings, leading them to explore healthier food and beverage options that provide better alternatives to traditional sugary staples.
With the rising interest in all things maple, Hain Celestial’s acquisition of a maple syrup manufacturer comes at an opportune moment. The increasing popularity of maple aligns perfectly with consumers’ preference for natural, healthier ingredients. Some analysts suggest that millennials, who are particularly mindful of their diets and ingredient sources, are eager to try familiar products that evoke nostalgia—especially those they remember from their childhoods.
Hain Celestial, renowned for its flagship tea as well as “healthy” consumer packaged goods brands like Garden of Eatin’, Earth’s Best, and the recently acquired Better Bean, has long been viewed as a potential acquisition target. This is primarily due to its emphasis on natural and organic products, which resonate with consumers who prioritize healthy eating. Major food and beverage companies rumored to be interested in acquiring Hain include General Mills, Kellogg, Nestle, Danone, Mondelez, Coca-Cola, and PepsiCo.
Incorporating Clarks into its business could enhance Hain Celestial’s appeal as a takeover target. The Food and Drug Administration’s upcoming requirement for food manufacturers to disclose the grams of added sugar in packaged foods and drinks as part of its revised Nutrition Facts label adds urgency to the market. With this label deadline approaching, more large food companies are launching new products or reformulating existing ones to improve their health profiles by reducing or replacing artificial sweeteners and processed sugars with better-for-you ingredients. Acquiring a company like Hain Celestial, which already includes a natural sweetener manufacturer in its portfolio, could prove to be an advantageous deal, especially as the demand for healthy products rises, including those enriched with nutrients like calcium citrate, which enhances the percent calcium in food, making them more appealing to health-conscious consumers.