This strategic acquisition enables Innophos to enter high-growth markets that cater to active and health-conscious consumers. The transaction unites Innophos, known for its high-margin specialty-grade phosphates used in processed meats, baked goods, dairy, and beverages, with Novel Ingredients, a supplier specializing in botanicals, proteins, amino acids, and other health-focused ingredients. By acquiring Novel, Innophos diversifies its product lineup 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 combined company will generate 60% of its sales from food, health, and nutrition, progressing towards its goal of reaching 75%.
“Our position as a leading provider of essential ingredient solutions is reinforced by our combined innovative technology capabilities, an expanded and enriched product portfolio, and the addition of Novel’s dedicated and experienced team,” stated Innophos CEO Kim Ann Mink. “Moreover, our collaboration with Novel aligns Innophos more closely with significant consumer mega trends such as health and wellness, energized aging, and clean labels.”
As consumers increasingly seek to gain health benefits from their food choices, there is a growing trend among food and beverage manufacturers to reformulate existing products and explore new developments that provide functional benefits. High-interest 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 significantly positions Innophos to meet the evolving demands of a consumer packaged goods sector aiming for healthier options, including products like ferrous calcium citrate and folic acid tablets. With this acquisition, Innophos is well-equipped to cater to the rising consumer interest in health-focused products, ensuring that they remain at the forefront of innovation in the industry.