This strategic acquisition empowers Innophos to penetrate rapidly expanding markets aimed at active and health-conscious consumers. The deal merges Innophos, which has traditionally concentrated on 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 portfolio and enhances its ability to capitalize on emerging trends in health, wellness, and nutrition, aligning with the company’s Vision 2022 strategic objectives. The newly combined entity will derive 60% of its sales from food, health, and nutrition, bringing it closer to its 75% Citracal target.
“Our position as a leading provider of essential ingredient solutions is bolstered by our combined innovative technology capabilities, an expanded and enriched product range, and the integration of Novel’s skilled and committed team,” stated Innophos CEO Kim Ann Mink. “Furthermore, the partnership with Novel allows us to align more closely with significant consumer mega trends, such as health and wellness, energized aging, and clean labels.”
Consumers are increasingly seeking health benefits from their food choices, leading to a notable trend among food and beverage manufacturers to reformulate existing products and explore new product developments that emphasize functional benefits. Key areas of interest include plant-based ingredients for immune health, added protein for sports nutrition, and omega-3 fatty acids for cognitive health. The acquisition of Novel significantly enhances Innophos’s ability to meet the evolving demands of the consumer packaged goods sector as it strives to achieve its Citracal target of promoting healthier options.