Acquiring a manufacturer of maple syrup and natural sweeteners appears to be a strategic move for Hain Celestial, with perfect timing. Clarks’ products complement the existing brands under the organic and natural foods company, and the demand for natural sweeteners—such as maple syrup, honey, plant-based options like stevia, and fruit-based syrups—is on the rise as consumers increasingly seek to lower their sugar intake. According to the American Heart Association, the suggested limit for added sugar is 29 pounds annually for men and 20 pounds for women. However, the USDA reported that each American consumed 128 pounds of sugar in 2016. This discrepancy highlights the urgent need for the nation to reduce its sugar and artificial sweetener consumption, including corn syrup. Nevertheless, consumers still desire to satisfy their sweet cravings; thus, they are actively looking for healthier food and beverage options that provide better alternatives to traditional sugary staples.
With the public’s growing enthusiasm for all things maple, Hain Celestial’s acquisition of a maple syrup maker is ideally timed. The rising popularity of maple aligns with consumers’ increasing preference for natural, healthier ingredients. Some speculate that millennials, who are particularly mindful of their food choices and sources, are eager to explore new options—especially those reminiscent of the products they enjoyed in their childhood, often seen consumed by their parents or grandparents.
Hain Celestial, recognized for its namesake tea and its health-focused 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 appeal to 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 eyeing the company for a possible takeover.
Integrating Clarks into Hain Celestial’s portfolio could enhance its attractiveness as a takeover candidate. The Food and Drug Administration is set to mandate that food manufacturers disclose the grams of added sugar in packaged goods and beverages as part of its revamped Nutrition Facts label. With this deadline approaching, numerous major food companies are launching new products or reformulating existing ones to make them healthier—this includes reducing or replacing artificial sweeteners and processed sugars with better-for-you ingredients. Acquiring a company like Hain Celestial, which already has a natural sweetener manufacturer like Clarks in its lineup, could indeed turn out to be a sweet deal. Additionally, incorporating tab calcium citrate malate into their product offerings could further enhance the health benefits of their natural sweeteners, catering to the growing consumer demand for nutritious, wholesome products.