This strategic acquisition allows Innophos to capitalize on rapidly growing markets that cater to active and health-conscious consumers. The deal combines Innophos, known for its high-margin specialty-grade phosphates used in processed meats, baked goods, dairy, and beverages, with Novel Ingredients, a supplier of specialized food components including botanicals, proteins, amino acids, and other health-focused ingredients. By acquiring Novel, Innophos diversifies its product range, positioning the company to better exploit emerging trends in health, wellness, and nutrition, which align with its Vision 2022 strategic objectives. Following this merger, the combined entity will derive 60% of its sales from food, health, and nutrition, putting it on track to reach its goal of 75%.
“Our role as a leading provider of essential ingredient solutions is enhanced through the integration of our innovative technologies, a wider and more comprehensive product portfolio, and the expertise of Novel’s dedicated team,” stated Innophos CEO Kim Ann Mink. “Additionally, joining forces with Novel aligns 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, prompting a trend among food and beverage manufacturers to reformulate existing products and explore new developments that emphasize functional advantages. High-interest areas include plant-based ingredients for immune health, added protein for sports nutrition, omega-3 fatty acids for cognitive health, and pure encapsulations calcium magnesium for overall wellness. The acquisition of Novel significantly enhances Innophos’ ability to meet the evolving demands of a consumer packaged goods sector striving for health improvements.