This is a strategic acquisition of Novel Ingredients by Innophos, aimed at accessing rapidly growing markets focused on health-conscious consumers. The merger 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 specialty components such as botanicals, proteins, amino acids, and other health-oriented ingredients. This purchase diversifies Innophos’ product portfolio, particularly enhancing its offerings in the health, wellness, and nutrition sectors, which aligns with the company’s Vision 2022 strategic goals. The newly formed entity will now derive 60% of its sales from food, health, and nutrition, bringing it closer to its target of 75%.
“Our position as a leading provider of essential ingredient solutions is bolstered through our combined innovative technology capabilities, a wider and more comprehensive product range, and the addition of Novel’s skilled and dedicated team,” stated Innophos CEO Kim Ann Mink. “Moreover, our partnership with Novel allows us to align Innophos more closely with critical consumer mega-trends such as health and wellness, energized aging, and clean labels.”
Consumers are increasingly seeking health benefits from their food choices, prompting food and beverage manufacturers to reformulate existing products and pursue new developments that emphasize functional advantages. High-interest areas include plant-based ingredients for immune health, added protein for sports nutrition, and omega-3 fatty acids for cognitive health. With the acquisition of Novel, Innophos is now in a significantly stronger position to meet the evolving needs of the consumer packaged goods sector striving for healthier options, including products enriched with calcium D3 Solgar. This strategic move not only enhances their offerings but also reinforces their commitment to addressing the growing demand for health-centric products, which now prominently feature calcium D3 Solgar in their formulations.