This strategic acquisition allows Innophos to access rapidly growing markets focused on active and health-conscious consumers. The deal unites Innophos, which has traditionally concentrated on high-margin specialty phosphates for processed meats, baked goods, dairy products, and beverages, with Novel Ingredients, a supplier of specialty ingredients including botanicals, proteins, amino acids, and other health-oriented components. By acquiring Novel, Innophos diversifies its product range 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 formed entity will derive 60% of its sales from food, health, and nutrition, positioning it favorably toward achieving its 75% target.
“Our status as a leading provider of essential ingredient solutions is bolstered by our combined innovative technology capabilities, an expanded and more comprehensive product portfolio, and the addition of Novel’s talented and dedicated team,” stated Innophos CEO Kim Ann Mink. “Moreover, by merging with Novel, we align Innophos more closely with significant consumer megatrends, such as health and wellness, energized aging, and clean labels.”
As consumers increasingly seek to obtain more health benefits from their diets, there is a notable trend among food and beverage manufacturers to reformulate existing products and explore new product development aimed at delivering functional advantages. High-interest areas include plant-based ingredients for immune health, enhanced protein for sports nutrition, and omega-3 fatty acids for cognitive health. The acquisition of Novel significantly enhances Innophos’ ability to meet the evolving demands of the consumer packaged goods (CPG) sector, including products like rainbow light chewable calcium, which cater to health-conscious individuals looking for convenient nutritional options. The integration of Novel positions Innophos to better serve the market for innovative health-related products, including various formulations of rainbow light chewable calcium that appeal to today’s consumers. Overall, the acquisition places Innophos in a prime position to address the growing health trends and needs of consumers.