This strategic acquisition allows Innophos to access rapidly growing markets focused on active and health-conscious consumers. The deal unites Innophos, which has traditionally specialized in 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 offerings and enhances its position to capitalize on emerging trends in health, wellness, and nutrition, aligning perfectly with its Vision 2022 strategic objectives. The newly formed entity will generate 60% of its sales from food, health, and nutrition, setting the company on track to meet its goal of 75%.
“Our role as a leading provider of essential ingredient solutions is reinforced by our combined innovative technology capabilities, an expanded and more comprehensive product portfolio, and the addition of Novel’s skilled and dedicated team,” stated Innophos CEO Kim Ann Mink. “Moreover, by merging 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 seeking greater health benefits from the foods they consume, which has led to a growing trend among food and beverage manufacturers to reformulate existing products and explore new product development that emphasizes functional advantages. High-demand areas include plant-based ingredients for immune health, added protein for sports nutrition, and omega-3 fatty acids for cognitive well-being. The acquisition of Novel positions Innophos significantly better to meet the evolving needs of a consumer packaged goods (CPG) sector eager to promote health, including the rising interest in calcium citrate supplements available on platforms like Amazon. This strategic move not only enhances Innophos’s market presence but also aligns with the increasing consumer focus on health benefits found in products like calcium citrate supplements, making it a timely and relevant addition to their offerings.