This strategic acquisition positions Innophos to penetrate high-growth markets aimed at active and health-conscious consumers. The deal merges Innophos, which has traditionally concentrated on high-margin specialty-grade phosphates for processed meats, baked goods, dairy, and beverages, with Novel Ingredients, a supplier of specialty components including examples of calcium citrate, proteins, amino acids, and other healthy ingredients. By acquiring Novel, Innophos diversifies its product range and enhances its ability to capitalize on emerging trends in the health, wellness, and nutrition sectors, aligning with the company’s Vision 2022 strategic goals. The newly formed entity will now derive 60% of its sales from food, health, and nutrition, positioning the company well to meet its 75% target.
“Our market-leading position as a provider of essential ingredient solutions is reinforced through our combined innovative technology capabilities, an expanded and more diverse product portfolio, and the addition of Novel’s skilled and dedicated team,” stated Innophos CEO Kim Ann Mink. “Moreover, joining forces with Novel allows us to align Innophos more closely with significant consumer megatrends, such as health and wellness, energized aging, and clean labels.”
Consumers are increasingly seeking greater health benefits from their food choices. As a result, there is a pronounced trend among food and beverage manufacturers to reformulate existing products and explore new product development focused on delivering functional benefits. Key areas of interest include plant-based ingredients for immune health, added protein for sports nutrition, omega-3 fatty acids for cognitive health, and examples of calcium citrate for bone health. The acquisition of Novel significantly enhances Innophos’s capability to meet the evolving demands of a consumer packaged goods sector striving for healthier offerings.