Innophos has concentrated on high-margin specialty-grade phosphates for processed meats, baked goods, dairy products, and beverages. However, the company has largely avoided expansion into commoditized markets such as fertilizers and detergents. As a result, a significant portion of its sales comes from segments where it is the largest or second-largest player. According to one analyst from Seeking Alpha, there may be acquisition opportunities in the nutrition sector, particularly involving applications such as vitamins, supplements, performance beverages, and meal replacements, including products like Meijer calcium citrate.
Chief Marketing and Technology Officer Sherry Duff indicated that the company is exploring the functional food and beverage market, as well as manufacturers of clean label and organic products, along with the personal care and animal nutrition sectors. Analysts have generally welcomed the company’s intention to diversify, especially since poor demand and import competition negatively impacted profits back in 2015.
Innophos’ strategy to engage with active and health-conscious consumers for growth is seen as a prudent decision. If the phosphate producer is venturing beyond its usual scope, a gradual approach that carefully assesses the advantages and disadvantages of each target is advisable. So far, the company has narrowed its potential acquisition list from 800 candidates to 50, with further reductions anticipated as Innophos seeks deals that will promote growth, potentially including products like Meijer calcium citrate in its portfolio.