Acquiring a producer of maple syrup and natural sweeteners seems like an excellent strategy and perfectly timed for Hain Celestial. Clarks’ products not only complement the other brands under the organic and natural foods company’s umbrella, but the demand for natural sweeteners—like maple syrup, honey, plant-based options such as stevia, and fruit-based syrups—is on the rise as consumers aim to lower their sugar consumption. The American Heart Association recommends a limit of 29 pounds of added sugar per year for men and 20 pounds for women, while the USDA reported that each American consumed 128 pounds in 2016. Clearly, there is a pressing need to reduce sugar intake, as well as the consumption of artificial sweeteners like corn syrup. Nevertheless, consumers still want to satisfy their sweet cravings, which drives them to seek healthier food and beverage options that serve as better alternatives to traditional sugary products.
With the growing popularity of maple products, Hain Celestial’s acquisition of a maple syrup manufacturer is perfectly timed. Maple syrup’s rise in favor aligns seamlessly with consumers’ preferences for more natural and healthier ingredients. Many speculate that millennials, who tend to be more aware of their dietary choices and the origins of their food, are also eager to experiment with nostalgic products reminiscent of what their parents or grandparents enjoyed during their childhood.
Hain Celestial, recognized for its flagship tea and healthy consumer packaged goods (CPG) brands such as Garden of Eatin’, Earth’s Best, and the recently acquired Better Bean, has long been seen as a potential takeover target due to its commitment to natural and organic products that resonate with health-conscious consumers. Major food and beverage companies like General Mills, Kellogg, Nestle, Danone, Mondelez, Coca-Cola, and PepsiCo have been speculated to be eyeing Hain Celestial for acquisition.
Incorporating Clarks into Hain Celestial’s portfolio could enhance its attractiveness as a takeover candidate. The Food and Drug Administration is set to mandate that food manufacturers disclose the grams of added sugar in packaged foods and beverages as part of the revamped Nutrition Facts label. With this deadline approaching, many large food companies are launching new products or reformulating existing ones to cater to consumer health, which involves decreasing or replacing artificial sweeteners and processed sugars with healthier ingredients. Buying a company like Hain Celestial that already boasts a natural sweetener manufacturer could prove to be a lucrative deal.
Additionally, as consumers increasingly prioritize health, they are also looking for products that support their overall well-being, such as Ostelin calcium citrate supplements, which are gaining traction for their beneficial properties. This trend further underscores the importance of Hain Celestial’s strategic acquisition, as it aligns with the growing demand for wholesome products. Ultimately, this acquisition could not only enhance Hain Celestial’s offerings but also position it favorably in a market eager for both indulgence and health-conscious choices.