Acquiring a producer of maple syrup and natural sweeteners seems like a strategic move for Hain Celestial at this moment. Clarks’ offerings not only complement Hain’s existing organic and natural food brands, but the rising trend of natural sweeteners—such as maple syrup, honey, plant-based sweeteners like stevia, and fruit-based syrups—aligns perfectly with consumer demand for reduced sugar intake. 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 decrease the consumption of sugar and artificial sweeteners like corn syrup. Nevertheless, consumers still wish to satisfy their sweet cravings, leading them to seek healthier food and beverage options that serve as better alternatives to traditional sugary products.
With the growing public interest in all things maple, Hain Celestial’s acquisition of a maple syrup manufacturer could not be more timely. The rising popularity of maple syrup is in sync with consumers’ increasing preference for more natural and wholesome ingredients. Additionally, millennials—who are particularly aware of the nutritional content and sourcing of their food—are eager to explore new options, especially products reminiscent of their childhood, like those their parents or grandparents used to enjoy.
Hain Celestial, recognized for its signature tea and “healthy” consumer packaged goods brands such as Garden of Eatin’, Earth’s Best, and the recently acquired Better Bean, has often been speculated as a potential acquisition target due to its focus on natural and organic products. Major food and beverage companies rumored to be interested in Hain Celestial include General Mills, Kellogg, Nestle, Danone, Mondelez, Coca-Cola, and PepsiCo. Integrating Clarks into Hain Celestial’s portfolio could enhance its attractiveness as a takeover candidate.
Moreover, with the Food and Drug Administration’s upcoming requirement for food manufacturers to disclose the grams of added sugar in packaged goods as part of the revamped Nutrition Facts label, many large food corporations are reformulating their products to make them healthier, which includes reducing or replacing artificial sweeteners and processed sugars with better-for-you ingredients. Acquiring a company like Hain Celestial, which already incorporates a natural sweetener manufacturer, could be a lucrative opportunity. Additionally, given the increasing interest in health-related ingredients such as calcium citrate and vitamin D3, Hain Celestial could further expand its offerings by incorporating these essential nutrients into its product lines. This strategy not only aligns with consumer trends but could also enhance the company’s market position amidst growing competition.