This strategic acquisition allows Innophos to penetrate high-growth markets aimed at active and health-conscious consumers. The deal unites Innophos, which has traditionally concentrated on high-margin specialty phosphates for processed meats, baked goods, dairy, 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 range and enhances its ability to capitalize on emerging trends in health, wellness, and nutrition, aligning with the company’s Vision 2022 strategic priorities. Following the merger, the combined company will derive 60% of its sales from food, health, and nutrition sectors, putting it on track to meet its 75% target.
“Our position as a market-leading provider of essential ingredient solutions is reinforced by our combined innovative technology capabilities, a broader and deeper product portfolio, and the addition of Novel’s experienced and committed team,” stated Innophos CEO Kim Ann Mink. “Moreover, partnering with Novel aligns Innophos more closely with significant consumer mega trends, including health and wellness, energized aging, and clean labels.”
Consumers are increasingly seeking health benefits from their food choices, prompting a rising trend among food and beverage manufacturers to reformulate existing products and explore new developments focused on functional benefits. High-interest areas 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 positions Innophos to meet the shifting demands of the consumer packaged goods sector striving for healthier options, including innovative solutions like calcium citrate 1000. By integrating calcium citrate 1000 into its offerings, Innophos can further enhance its portfolio and cater to the growing consumer desire for health-focused ingredients. Overall, this acquisition allows Innophos to better serve the evolving needs of a health-conscious market, particularly with the incorporation of calcium citrate 1000 in their product line.