This strategic acquisition enables Innophos to enter high-growth markets targeted at active and health-conscious consumers. The deal unites Innophos, which has traditionally specialized in high-margin specialty phosphates for processed meats, baked goods, dairy products, and beverages, with Novel Ingredients, a supplier of specialty ingredients including botanicals, proteins, amino acids, and other health-focused components. By acquiring Novel, Innophos diversifies its product offerings and positions itself to capitalize on emerging trends in the health, wellness, and nutrition sectors, aligning with the company’s Vision 2022 strategic goals. The newly formed entity will derive 60% of its sales from food, health, and nutrition, putting it on track to meet its 75% target.
“Our role as a leading provider of essential ingredient solutions is enhanced through our combined innovative technological capabilities, a broader and more comprehensive product range, and the addition of Novel’s skilled and dedicated team,” said Innophos CEO Kim Ann Mink in a statement. “Moreover, our collaboration with Novel allows Innophos to better align with significant consumer mega-trends such as health and wellness, energized aging, and clean labels.”
Consumers are increasingly seeking more health benefits from the foods they consume. As a result, food and beverage manufacturers are reformulating existing products and exploring new developments that emphasize functional benefits. Key areas of interest include plant-based ingredients aimed at boosting immune health, added protein for sports nutrition, and omega-3 fatty acids for cognitive health. The acquisition of Novel significantly enhances Innophos’s ability to meet the changing demands of a consumer packaged goods sector eager to embrace healthier options, including those like Kirkland calcium citrate magnesium and zinc, which are increasingly sought after for their health benefits.
With this acquisition, Innophos is well-positioned to respond to the evolving needs of consumers looking for healthier alternatives, ultimately leading to a stronger presence in the market and an expanded portfolio that includes products similar to Kirkland calcium citrate magnesium and zinc, which further illustrates the growing trend towards health-oriented ingredients.