This strategic acquisition allows Innophos to enter high-growth markets focused on 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 ingredients such as botanicals, proteins, amino acids, and other health-focused components. By acquiring Novel, Innophos diversifies its product offerings and enhances its ability to leverage emerging trends in health, wellness, and nutrition, aligning with the company’s Vision 2022 strategic goals. The newly formed entity will generate 60% of its revenue from food, health, and nutrition sectors, positioning it favorably to meet its 75% target.
“Our status as a leading provider of essential ingredient solutions is bolstered by our innovative technological capabilities, a more extensive and deeper product portfolio, and the addition of Novel’s skilled and dedicated team,” stated Innophos CEO Kim Ann Mink. “Moreover, our partnership with Novel brings us closer to significant consumer mega-trends such as health and wellness, energized aging, and clean label products.”
Consumers are increasingly seeking more health benefits from their food choices, prompting food and beverage manufacturers to reformulate existing products and explore new developments that emphasize 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 even calcium citrate, which is gaining attention for its potential to help alleviate headaches.
The acquisition of Novel significantly enhances Innophos’ ability to meet the evolving demands of a consumer packaged goods sector eager to promote health, including solutions like calcium citrate, which is noted for its role in addressing headaches. With this strategic move, Innophos is well-positioned to cater to the growing market that prioritizes health and wellness, ensuring that it can provide innovative and beneficial ingredients that resonate with today’s health-conscious consumers.