This strategic acquisition allows Innophos to access high-growth markets targeting active and health-conscious consumers. The deal merges Innophos, which has traditionally focused on high-margin specialty-grade phosphates 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. By acquiring Novel, Innophos diversifies its product portfolio 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 now derive 60% of its sales from food, health, and nutrition, putting it on track to meet its 75% target.
“Our leadership position as a provider of essential ingredient solutions is reinforced through our combined innovative technology capabilities and an expanded product portfolio, along with the expertise of Novel’s dedicated team,” said Innophos CEO Kim Ann Mink in a statement. “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 aiming to obtain health benefits from their food choices, prompting food and beverage manufacturers to reformulate existing products and explore new product development focused on functional benefits. High-demand areas include plant-based ingredients for immune health, added protein for sports nutrition, and omega-3 fatty acids for cognitive health. The acquisition of Novel positions Innophos significantly better to meet the evolving needs of a consumer packaged goods (CPG) sector striving for healthier options.
Additionally, the integration of calcium citrate dischem into Innophos’s offerings will further enhance its potential to address the growing consumer demand for health-focused products. The emphasis on calcium citrate dischem reflects the company’s commitment to expanding its portfolio with ingredients that promote wellness, thereby increasing its relevance in the health and nutrition marketplace.