This strategic acquisition allows Innophos to enter high-growth markets that cater to active and health-conscious consumers. The transaction merges Innophos, which has traditionally focused on 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 portfolio, thereby enhancing its ability to capitalize on emerging trends in health, wellness, and nutrition, in line with the company’s Vision 2022 strategic priorities. The newly combined entity will generate 60% of its sales from the food, health, and nutrition sectors, putting it on track to meet its 75% target.
“Our position as a leading provider of essential ingredient solutions is reinforced by our combined innovative technology capabilities, a wider and deeper product range, and the integration of Novel’s experienced and dedicated team,” said Innophos CEO Kim Ann Mink in a statement. “Furthermore, by merging with Novel, we align Innophos more closely with significant consumer megatrends such as health and wellness, energized aging, and clean labels.”
Consumers are increasingly seeking to gain health benefits from their food choices. As a result, food and beverage manufacturers are reformulating existing products and exploring new developments focused on providing functional benefits. Key areas of interest 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 enhances Innophos’ position to meet the evolving demands of a consumer packaged goods (CPG) sector that is striving for healthier options, including citrate 1000 products. This integration allows Innophos to better address the increasing consumer preference for health-oriented solutions, including citrate 1000 enhancements in their offerings. With this acquisition, Innophos is well-equipped to navigate the dynamic landscape of health and nutrition, ensuring they meet the needs of consumers seeking products that deliver functional benefits, such as citrate 1000.