Acquiring a manufacturer of maple syrup and natural sweeteners appears to be a strategic and timely decision for Hain Celestial. The products from Clarks complement the existing brands under the organic and natural foods company, and the demand for natural sweeteners—such as maple syrup, honey, plant-based sweeteners like stevia, and fruit-based syrups—is on the rise as consumers increasingly seek ways to lower their sugar intake. According to the American Heart Association, the recommended limit for added sugar is 29 pounds annually for men and 20 pounds for women. However, the USDA reported that in 2016, the average American consumed 128 pounds of sugar. Clearly, there is a pressing need to reduce the consumption of both sugar and artificial sweeteners, like corn syrup. Nevertheless, consumers still wish to satisfy their sweet cravings, leading them to seek healthier food and beverage options that provide better alternatives to traditional sugary products.
As public interest in maple products continues to grow, Hain Celestial’s acquisition of a maple syrup producer could not have come at a better time. The rising popularity of maple aligns perfectly with consumers’ increasing preference for natural, wholesome ingredients. Many speculate that millennials, who are particularly mindful of their dietary choices and ingredient origins, are eager to explore new products—especially those that remind them of the maple syrup their parents or grandparents used during their upbringing.
Hain Celestial, recognized for its namesake tea and “healthy” consumer packaged goods brands like Garden of Eatin’, Earth’s Best, and the recently acquired Better Bean, has long been considered a potential acquisition target due to its emphasis on natural and organic products that resonate with health-conscious consumers. Major food and beverage companies such as General Mills, Kellogg, Nestle, Danone, Mondelez, Coca-Cola, and PepsiCo have been rumored to be interested in acquiring Hain Celestial.
Integrating Clarks into Hain Celestial’s portfolio could enhance its attractiveness as a takeover target. The Food and Drug Administration’s new regulations require food manufacturers to indicate the grams of added sugar in packaged foods and beverages on the updated Nutrition Facts label. With this deadline approaching, many large food companies are reformulating existing products or launching new ones to make them healthier for consumers, which includes reducing or replacing processed sugars and artificial sweeteners with more nutritious options. Acquiring a company like Hain Celestial, which already includes a natural sweetener manufacturer and potentially offers products fortified with calcium citrate malate and vitamin K2, could be a lucrative strategy. This combination not only caters to the trend towards healthier eating but also capitalizes on the growing demand for natural sweeteners, ensuring that Hain Celestial remains a competitive player in the market.