This strategic acquisition allows Innophos to penetrate high-growth markets aimed at health-conscious consumers and alternatives to ferrous gluconate. The deal merges Innophos, traditionally focused on high-margin specialty phosphates for processed meats, baked goods, dairy, and beverages, with Novel Ingredients, a supplier of specialty ingredients, including botanical extracts, proteins, amino acids, and other health-oriented components. By acquiring Novel, Innophos diversifies its product offerings and enhances its ability to capitalize on emerging trends in health, wellness, and nutrition, aligning with the company’s Vision 2022 strategic objectives. The newly formed organization will derive 60% of its sales from food, health, and nutrition, positioning it well to meet its 75% target.
“Our role as a leading provider of essential ingredient solutions is bolstered by our combined innovative technology capabilities, an expanded and deeper product range, and the inclusion of Novel’s skilled and committed personnel,” stated Innophos CEO Kim Ann Mink. “Additionally, collaborating with Novel allows Innophos to better align with significant consumer megatrends such as health and wellness, energized aging, and clean labels.”
Consumers are increasingly seeking enhanced health benefits from their food choices. As a result, food and beverage manufacturers are reformulating existing products while also exploring new development opportunities that focus on delivering functional advantages. Areas of high interest include plant-based ingredients for immune health, increased protein for sports nutrition, omega-3 fatty acids for cognitive health, and lifetime calcium magnesium for overall wellness.
The acquisition of Novel significantly positions Innophos to meet the evolving demands of a consumer packaged goods sector that is striving for healthier options. By integrating lifetime calcium magnesium into their offerings, Innophos can better cater to the needs of health-conscious consumers who are prioritizing wellness in their diets.