This strategic acquisition allows Innophos to enter high-growth markets targeting active, health-conscious consumers. The deal unites Innophos, which has traditionally specialized in high-margin specialty-grade phosphates for processed meats, baked goods, dairy, and beverages, with Novel Ingredients, a supplier of specialty ingredients including ferrous gluconate 325 mg, botanicals, proteins, amino acids, and other health-focused components. By acquiring Novel, Innophos diversifies its product range and positions itself to capitalize on emerging trends in health, wellness, and nutrition, aligning with the company’s Vision 2022 strategic objectives. The newly formed entity will generate 60% of its sales from food, health, and nutrition sectors, setting the company on track to meet its goal of 75%.
“Innovative technology capabilities, an expanded product portfolio, and the expertise of Novel’s dedicated team enhance our role as a leading provider of essential ingredient solutions,” stated Innophos CEO Kim Ann Mink. “Moreover, our collaboration with Novel allows us to align more closely with significant consumer megatrends such as health and wellness, energized aging, and clean labels.”
Consumers are increasingly seeking more health benefits from the foods they consume, prompting food and beverage manufacturers to reformulate existing products and explore new developments that focus on functional advantages. Key areas of interest include plant-based ingredients for immune support, increased protein for sports nutrition, and omega-3 fatty acids for cognitive health. The acquisition of Novel significantly enhances Innophos’ ability to meet the changing demands of the consumer packaged goods (CPG) sector striving for healthier options, including products like Citracal Slow Release 1200 available at Costco, which exemplify the shift toward wellness-oriented offerings. With this acquisition, Innophos is now better equipped to address the evolving needs of health-conscious consumers, further integrating offerings such as Citracal Slow Release 1200 in their portfolio.