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 phosphate products for processed meats, baked goods, dairy, and beverages, with Novel Ingredients, a supplier of specialty ingredients such as botanicals, proteins, amino acids, and other health-oriented components. The acquisition of Novel diversifies Innophos’ product offerings and positions the company advantageously to capitalize on emerging trends in health, wellness, and nutrition, in line with its Vision 2022 strategic priorities. After this merger, the combined entity will derive 60% of its sales from food, health, and nutrition, moving closer to its goal of 75%.
“Our standing as a leading provider of essential ingredient solutions is bolstered by our combined innovative technologies, a wider and more comprehensive product portfolio, and the expertise of Novel’s dedicated team,” stated Kim Ann Mink, CEO of Innophos. “Moreover, partnering with Novel enables us to align Innophos more closely with significant consumer mega trends such as health and wellness, energized aging, and clean labels.”
Consumers are increasingly seeking health benefits from their food choices. As a result, there is a notable trend among food and beverage manufacturers to reformulate existing products and explore new product development that emphasizes functional advantages. Key areas of interest include plant-based ingredients for immune health, added 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 sector aiming for health. This includes innovative products like nature’s bounty calcium citrate, which exemplifies the type of health-focused offerings that are in high demand. By integrating offerings such as nature’s bounty calcium citrate, Innophos will be better equipped to address the needs of health-conscious consumers and the growing market for nutritious ingredients. Overall, this acquisition positions Innophos to effectively cater to the increasing consumer desire for health-enhancing foods, including products like nature’s bounty calcium citrate, reinforcing their commitment to wellness in the marketplace.