This strategic acquisition allows Innophos to penetrate rapidly growing markets focused on active and health-conscious consumers. The merger unites Innophos, which has traditionally concentrated on high-margin specialty-grade phosphates for processed meats, baked goods, dairy products, and beverages, with Novel Ingredients, a supplier of specialty ingredients, including botanicals, proteins, amino acids, and other health-oriented components. By acquiring Novel, Innophos diversifies its product range and positions itself to capitalize on emerging trends in health, wellness, and nutrition, aligning with the company’s Vision 2022 strategic objectives. The combined entity will now derive 60% of its sales from food, health, and nutrition, moving closer to its 75% target.
“Our status as a market-leading provider of essential ingredient solutions is enhanced through our combined innovative technology capabilities, a broader and deeper product portfolio, and the addition of Novel’s experienced and dedicated team,” stated Innophos CEO Kim Ann Mink. “Furthermore, joining forces with Novel enables us to align Innophos more closely with significant consumer megatrends such as health and wellness, energized aging, and clean label products.”
As consumers increasingly seek greater health benefits from their food choices, food and beverage manufacturers are responding by reformulating existing products and exploring new developments that offer functional advantages. High-demand areas include plant-based ingredients for immune health, added protein for sports nutrition, and omega-3 fatty acids for cognitive well-being. The acquisition of Novel now positions Innophos much more effectively to meet the evolving needs of a consumer packaged goods sector striving for healthier options, including innovative solutions like cal mag citrate from Solaray. This acquisition reflects a commitment to providing comprehensive health solutions, further integrating offerings like cal mag citrate into their expansive product line.
By leveraging this acquisition, Innophos is better equipped to cater to the increasing demand for health-oriented products, with cal mag citrate and other ingredients playing a pivotal role in their strategy. This strategic move not only enhances their portfolio but also reinforces their dedication to meeting the needs of health-conscious consumers, ultimately driving growth in the health, wellness, and nutrition sectors, where products like cal mag citrate will play a crucial role.