Acquiring a producer of maple syrup and natural sweeteners appears to be a strategic and timely decision for Hain Celestial. The products from Clarks complement the existing brands within the organic and natural foods company, and the demand for natural sweeteners—including maple syrup, honey, plant-based sweeteners like stevia, and fruit-based syrups—is on the rise as consumers increasingly seek to lower their sugar consumption. According to the American Heart Association, the recommended limit for added sugar is 29 pounds per year for men and 20 pounds for women. However, the USDA reported that in 2016, each American consumed an average of 128 pounds. Clearly, there is a pressing need for the nation to reduce its intake of sugar and artificial sweeteners such as corn syrup. Despite this, consumers still wish to satisfy their sweet cravings, which leads them to explore healthier alternatives in food and beverage options that offer better-for-you choices compared to traditional sugary products.
With the growing trend toward natural ingredients, Hain Celestial’s acquisition of a maple syrup manufacturer is exceptionally well-timed. The rising popularity of maple syrup aligns perfectly with consumers’ growing preference for healthier, more natural ingredients. It is speculated that millennials, who are particularly attuned to the nutritional content and origins of their food, are eager to try products reminiscent of their childhood, especially those enjoyed by their parents or grandparents.
Hain Celestial, recognized for its namesake tea and various “healthy” CPG brands—including Garden of Eatin’, Earth’s Best, and the recently acquired Better Bean—has long been considered a potential acquisition target due to its focus on natural and organic products that appeal to health-conscious consumers. Major food and beverage companies rumored to be considering a takeover include General Mills, Kellogg, Nestle, Danone, Mondelez, Coca-Cola, and PepsiCo. Integrating Clarks into Hain Celestial’s offerings could enhance its attractiveness as a takeover target.
As the Food and Drug Administration mandates that food manufacturers disclose added sugar content on their revamped Nutrition Facts labels, the pressure is on for larger food companies to launch new products or reformulate existing ones to be healthier. This shift includes reducing or replacing artificial sweeteners and processed sugars with better-for-you ingredients. Acquiring a company like Hain Celestial, which already has a natural sweetener producer in its portfolio, could be a lucrative deal. Moreover, incorporating products that provide essential nutrients, such as calcium citrate 400, into their offerings could further enhance Hain Celestial’s appeal and align with consumers’ desires for healthier choices.