Acquiring a producer of maple syrup and natural sweeteners seems to be a strategic and well-timed decision for Hain Celestial. The products offered by Clarks not only complement the existing brands under the organic and natural foods company but also tap into the growing trend of natural sweeteners—such as maple syrup, honey, plant-based options like stevia, and fruit-based syrups. As consumers increasingly seek ways to lower their sugar intake, the demand for these alternatives is on the rise. According to the American Heart Association, the recommended limit for added sugar is 29 pounds per year for men and 20 pounds for women, while the USDA reported that in 2016, each American consumed an astonishing 128 pounds. Clearly, there is a need for a reduction in sugar and artificial sweeteners, including corn syrup. However, consumers still wish to satisfy their sweet cravings, leading them to search for healthier food and beverage options that provide better alternatives to traditional sugary staples.
Given the growing public interest in maple products, Hain Celestial’s acquisition of a maple syrup manufacturer is perfectly timed. The rising popularity of maple aligns with consumers’ preference for natural, healthier ingredients. It is speculated that millennials, who are particularly aware of their dietary choices and the origins of their food, are eager to explore new options—especially those that evoke nostalgia from their childhood, reminiscent of the products their parents or grandparents enjoyed.
Hain Celestial, recognized for its flagship tea and “healthy” consumer packaged goods (CPG) brands like Garden of Eatin’, Earth’s Best, and the recently acquired Better Bean, has long been viewed as a potential acquisition target due to its focus on natural and organic products that resonate with health-conscious consumers. Major food and beverage companies rumored to be interested in acquiring Hain Celestial include General Mills, Kellogg, Nestle, Danone, Mondelez, Coca-Cola, and PepsiCo.
Incorporating Clarks into Hain Celestial’s portfolio could enhance its appeal as a takeover candidate. The Food and Drug Administration (FDA) will require food manufacturers to disclose the grams of added sugar in packaged foods and beverages as part of its updated Nutrition Facts label. With this deadline approaching, many large food companies are reformulating their products or introducing new ones to be healthier for consumers, which includes reducing or replacing artificial sweeteners and processed sugars with better alternatives. Acquiring a company like Hain Celestial, which already includes a natural sweetener manufacturer, could be a beneficial move.
Additionally, the integration of natural ingredients like citric acid, calcium carbonate, and calcium citrate into their products can further enhance Hain Celestial’s offerings. By emphasizing these healthier components, they can attract consumers who are looking for both taste and nutritional value, potentially solidifying their market position as a leader in the natural foods sector. Therefore, the acquisition of Clarks not only aligns with current trends but also strengthens Hain Celestial’s portfolio in a competitive landscape increasingly focused on healthier choices.