This strategic acquisition allows Innophos to penetrate high-growth markets that cater to active, health-conscious consumers. The deal combines Innophos, known for its high-margin specialty 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 components. By acquiring Novel, Innophos diversifies its product lineup and enhances its capability to capitalize on emerging trends in health, wellness, and nutrition, aligning with the company’s Vision 2022 strategic goals. The newly formed entity will derive 60% of its sales from food, health, and nutrition sectors, moving towards its target of 75%.
“Our status as a leading provider of essential ingredient solutions is reinforced through our combined innovative technology, a broader and deeper product portfolio, and the inclusion of Novel’s experienced and dedicated team,” stated Innophos CEO Kim Ann Mink. “Moreover, our partnership with Novel aligns Innophos more closely with significant consumer mega trends such as health and wellness, energized aging, and clean labels.”
Consumers are increasingly seeking health benefits from their food choices, prompting manufacturers in the food and beverage sector to reformulate existing products and explore new developments that focus on functional advantages. High-interest areas include plant-based ingredients for immune health, added protein for sports nutrition, omega-3 fatty acids for cognitive health, and specific supplements like algaecal calcium and strontium citrate, which are gaining traction for their health benefits. The acquisition of Novel significantly enhances Innophos’s ability to meet the changing demands of a CPG sector eager to promote better health. With this merger, the company is well-equipped to leverage trends such as the rising popularity of algaecal calcium and strontium citrate supplements, solidifying its position in the evolving market.