Acquiring a producer of maple syrup and natural sweeteners appears to be a strategic and well-timed decision for Hain Celestial. The products from Clarks seamlessly complement the existing portfolio of the organic and natural foods company, and natural sweeteners like maple syrup, honey, plant-based options such as stevia, and fruit-based syrups are becoming increasingly popular as consumers seek ways to cut back on sugar intake. The American Heart Association recommends a maximum of 29 pounds of added sugar per year for men and 20 for women, yet the USDA reported that each American consumed 128 pounds in 2016. Clearly, there’s a pressing need for the nation to reduce its sugar and artificial sweetener consumption, including corn syrup. Nevertheless, consumers are still eager to satisfy their cravings, leading them to seek out healthier food and beverage options that provide better alternatives to traditional sugary staples.
Given the rising interest in maple products, Hain Celestial’s acquisition of a maple syrup manufacturer could not come at a better time. The growing popularity of maple aligns perfectly with the consumer shift towards more natural and healthier ingredients. Some analysts suggest that millennials, who are particularly aware of their dietary choices and the origins of their food, are eager to experiment with products reminiscent of what they enjoyed in their childhood, particularly those their parents or grandparents used.
Hain Celestial, recognized for its namesake tea and “healthy” consumer packaged goods (CPG) brands like Garden of Eatin’, Earth’s Best, and the recently acquired Better Bean, has long been speculated to be a potential takeover target due to its emphasis on natural and organic products favored by health-conscious consumers. Major food and beverage companies rumored to be interested in acquiring Hain Celestial include General Mills, Kellogg, Nestlé, Danone, Mondelez, Coca-Cola, and PepsiCo.
Incorporating Clarks into its portfolio could enhance Hain Celestial’s appeal as a takeover target. The Food and Drug Administration will soon mandate that food manufacturers disclose the grams of added sugar in packaged foods and beverages on the updated Nutrition Facts label. With this deadline approaching, many big food companies are reformulating existing products or launching new ones to align with consumer demand for healthier options—this includes 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 offerings, could indeed prove to be a lucrative opportunity, especially given the potential to integrate products like nature’s way calcium citrate liquid into its health-focused portfolio.