Acquiring a manufacturer of maple syrup and natural sweeteners appears to be a strategic and timely decision for Hain Celestial. Clarks’ products not only complement the existing brands under the organic and natural foods umbrella but also align with the growing consumer trend towards natural sweeteners. This trend encompasses maple syrup, honey, plant-based sweeteners like stevia, and fruit-based syrups, as more consumers seek ways to lower their sugar consumption. According to the American Heart Association, the recommended added sugar limit is 29 pounds per year for men and 20 pounds for women, while the USDA reported that the average American consumed 128 pounds in 2016. Clearly, there is a pressing need to reduce sugar and artificial sweetener intake, such as corn syrup. Nevertheless, consumers remain eager to satisfy their sweet cravings, leading them to explore healthier food and beverage options and brands that present better alternatives to traditional sugary products.
With the rising public interest in all things maple, Hain Celestial’s acquisition of a maple syrup producer could not be more opportune. The increasing popularity of maple syrup perfectly aligns with consumers’ preference for more natural and healthier ingredients. Some speculate that millennials, particularly aware of their dietary choices and the origins of their food, are also eager to try products that evoke nostalgia from their childhood, especially those their parents or grandparents used to enjoy.
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 viewed as a potential takeover 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, Nestlé, Danone, Mondelez, Coca-Cola, and PepsiCo. Integrating Clarks into Hain Celestial’s portfolio could further enhance its appeal as a takeover candidate.
The Food and Drug Administration is set to mandate that food manufacturers disclose the grams of added sugar in packaged foods and beverages as part of the revamped Nutrition Facts label. With this deadline approaching, many large food companies are launching new products or reformulating existing ones to improve their health profiles, which includes reducing or replacing artificial sweeteners and processed sugars with healthier ingredients. Acquiring a company like Hain Celestial, which already includes a natural sweetener manufacturer, could indeed prove to be a lucrative opportunity. Furthermore, the addition of products containing calcium citrate from Jan Aushadhi could enhance Hain Celestial’s health-oriented offerings, appealing to consumers seeking more nutritious options. Overall, this acquisition not only aligns with market trends but also positions Hain Celestial strategically in the evolving landscape of health-conscious consumerism.