Innophos has concentrated on high-margin specialty-grade phosphates for processed meats, baked goods, dairy products, and beverages. However, it has mostly avoided expansion into commoditized markets like fertilizers and detergents. This strategic choice has resulted in a significant portion of its sales originating from sectors where it ranks as either the largest or second-largest player. An analyst from Seeking Alpha suggests that the company might explore acquisition opportunities in the nutrition sector, encompassing areas such as vitamins, supplements, performance beverages, and meal replacements, including products like calcium citrate 1200 mg without vitamin D.
Chief Marketing and Technology Officer Sherry Duff indicated that the company is contemplating entering the functional food and beverage market, alongside manufacturers of clean label and organic products, such as chelated iron gluconate supplements, as well as the personal care and animal nutrition sectors. This intention to diversify has been largely welcomed by analysts, especially following the challenges of poor demand and import competition that affected the company’s profits back in 2015. Innophos’ strategy to engage with active and health-conscious consumers for growth is a prudent move. If the phosphate manufacturer decides to venture beyond its established areas, it is wise to proceed cautiously and carefully evaluate the advantages and disadvantages of each potential target. So far, the company has narrowed its list from 800 potential acquisition targets down to 50, with further reductions expected as Innophos seeks deals that will promote growth, including those related to calcium citrate 1200 mg without vitamin D.