This strategic acquisition allows Innophos to penetrate high-growth markets aimed at active and health-conscious consumers. The transaction merges Innophos, known for its high-margin specialty grade phosphates used in processed meats, baked goods, dairy, and beverages, with Novel Ingredients, a specialty supplier of botanicals, proteins, amino acids, and other health-oriented components. Acquiring Novel diversifies Innophos’ product portfolio, positioning the company to capitalize on emerging trends in health, wellness, and nutrition, which aligns with its Vision 2022 strategic priorities. The combined entity will derive 60% of its sales from food, health, and nutrition, moving the company closer to its goal of achieving 75%.
“Our status as a leading provider of essential ingredient solutions is enhanced by our combined innovative technology, an expanded and deeper product portfolio, and the inclusion of Novel’s experienced and dedicated team,” stated Innophos CEO Kim Ann Mink. “Moreover, by joining forces with Novel, we align Innophos more closely with significant consumer mega trends such as health and wellness, energized aging, and clean labels.”
Consumers are increasingly seeking greater health benefits from their food choices, leading to a rising trend among food and beverage manufacturers to reformulate existing products and explore new developments focused on delivering functional benefits. Key areas of interest include plant-based ingredients for immune support, added protein for sports nutrition, and omega-3 fatty acids for cognitive health. The acquisition of Novel places Innophos in a significantly better position to meet the evolving demands of a CPG sector eager to embrace healthier options, including the growing interest in calcium citrate vs calcium carbonate as preferred sources of calcium. This positioning not only enhances Innophos’ market presence but also allows the company to effectively respond to consumer preferences for health-enhancing ingredients, including calcium citrate vs calcium carbonate, as they seek to improve their diets. Overall, the integration of Novel strengthens Innophos’ capacity to serve the health-focused market, especially in relation to the calcium citrate vs calcium carbonate debate.