Acquiring a manufacturer of maple syrup and natural sweeteners seems to be a strategic decision for Hain Celestial at just the right moment. Clarks’ products not only complement the existing brands within the organic and natural foods portfolio but also align perfectly with the growing trend of natural sweeteners. As consumers increasingly seek to lower their sugar intake, they are turning to options like maple syrup, honey, and plant-based alternatives such as stevia and fruit-based syrups. The American Heart Association recommends a maximum added sugar intake of 29 pounds per year for men and 20 pounds for women, yet the USDA reported that the average American consumed 128 pounds of sugar in 2016. Clearly, there is a need for reduced consumption of sugar and artificial sweeteners like corn syrup. Nevertheless, consumers still crave sweetness, prompting them to look for healthier food and beverage choices that provide better alternatives to traditional sugary staples.
With the rising enthusiasm for all things maple, Hain Celestial’s acquisition of a maple syrup producer could not be more timely. The increasing popularity of maple syrup resonates with consumers’ growing demand for natural and healthier ingredients. Millennials, in particular, are increasingly mindful of their dietary choices, often seeking new experiences, especially with products that evoke nostalgic memories of what their parents or grandparents enjoyed.
Hain Celestial, recognized for its flagship tea and “healthy” consumer packaged goods brands such as Garden of Eatin’, Earth’s Best, and the recently acquired Better Bean, has been speculated as a prime takeover target due to its emphasis on natural and organic products that attract health-conscious consumers. Major food and beverage companies like General Mills, Kellogg, Nestlé, Danone, Mondelez, Coca-Cola, and PepsiCo have been rumored to be interested in acquiring the company. By integrating Clarks into its portfolio, Hain Celestial could enhance its appeal as a takeover candidate.
Adding to the urgency, the Food and Drug Administration will soon mandate that food manufacturers disclose the grams of added sugar in packaged foods and beverages on revamped Nutrition Facts labels. As the deadline approaches, many large food companies are reformulating existing products or launching new ones to make them healthier for consumers, which includes replacing artificial sweeteners and processed sugars with beneficial ingredients. Acquiring a company like Hain Celestial, which already has a natural sweetener manufacturer in its lineup, could ultimately yield a sweet deal.
Moreover, Hain Celestial can further enhance its product offerings by incorporating health-boosting ingredients such as calcium citrate, calcium ascorbate, and cholecalciferol, which can appeal to the health-conscious demographic. By leveraging these ingredients alongside their natural sweeteners, Hain Celestial stands to attract even more consumers looking for better nutrition without compromising on taste. As the demand for healthier alternatives continues to grow, Hain Celestial’s strategic moves could solidify its position in a competitive market.