Acquiring a producer of maple syrup and natural sweeteners appears to be a strategic move and timely decision for Hain Celestial. The products from Clarks complement the existing brands under this organic and natural foods company, while natural sweeteners—such as maple syrup, honey, plant-based options like stevia, and fruit-based syrups—are currently trending as more consumers seek to lower their sugar consumption. According to the American Heart Association, the recommended limit for added sugar is 29 pounds annually for men and 20 pounds for women. However, the USDA reported that in 2016, the average American consumed 128 pounds of sugar. There is a clear need for the nation to reduce its sugar and artificial sweetener intake, including corn syrup. Nevertheless, consumers still want to satisfy their cravings, prompting them to look for healthier food and beverage options that prioritize better ingredients over traditional sugary staples.
With the growing fascination with maple products, the timing of Hain Celestial’s acquisition of a maple syrup manufacturer couldn’t be better. Maple aligns perfectly with consumers’ increasing preference for natural and healthier ingredients. It’s speculated that millennials, who are particularly mindful of their dietary choices, are also interested in trying new things—especially products that remind them of their childhood favorites enjoyed by their parents or grandparents.
Hain Celestial, recognized for its signature tea and health-focused consumer packaged goods brands like Garden of Eatin’, Earth’s Best, and the recently acquired Better Bean, has been viewed as a potential acquisition target due to its commitment to natural and organic products that resonate with health-conscious consumers. Major food and beverage companies rumored to be considering a takeover of Hain Celestial include General Mills, Kellogg, Nestlé, Danone, Mondelez, Coca-Cola, and PepsiCo. Integrating Clarks into Hain Celestial’s portfolio could enhance its attractiveness as a takeover candidate.
The Food and Drug Administration is set to mandate that food manufacturers disclose the grams of added sugar in packaged foods and beverages on the revamped Nutrition Facts label. With this label deadline approaching, many large food companies are introducing new products or reformulating existing ones to make them healthier for consumers, which often involves decreasing or substituting artificial sweeteners and processed sugars with superior ingredients. Acquiring a company like Hain Celestial, which already includes a natural sweetener manufacturer in its range, could turn out to be a particularly advantageous deal, especially in the 21st century where consumers are increasingly focused on health, including vital nutrients like calcium in their diets.