“Strategic Acquisition of Novel Ingredients Positions Innophos to Capitalize on Emerging Health and Wellness Trends”
This strategic acquisition allows Innophos to access rapidly growing markets aimed at health-conscious and active consumers. The deal merges Innophos, which has traditionally focused on high-margin specialty-grade phosphates used in processed meats, baked goods, dairy, and beverages, with Novel Ingredients, a supplier of specialty ingredients such as botanicals, proteins, amino acids, and other health-oriented components. Acquiring Novel diversifies Innophos’ product offerings, positioning the company to capitalize on emerging trends in health, wellness, and nutrition, in line with its Vision 2022 strategic goals. The newly formed entity will derive 60% of its sales from food, health, and nutrition, putting it on track to meet its target of 75%.
“Our standing as a leading provider of critical ingredient solutions is enhanced through our combined innovative technological capabilities, a more extensive and diverse product portfolio, and the addition of Novel’s skilled and dedicated personnel,” stated Innophos CEO Kim Ann Mink. “Moreover, joining forces with Novel aligns Innophos more closely with significant consumer mega trends including health and wellness, energized aging, and clean labels.”
As consumers increasingly seek health benefits from the foods they consume, there is a noticeable trend among food and beverage manufacturers to reformulate existing products and explore new developments that emphasize functional benefits. Notably, areas of high interest include plant-based ingredients for immune health, added protein for sports nutrition, omega-3 fatty acids for cognitive health, and calcium citrate for sleep. The acquisition of Novel significantly enhances Innophos’ ability to meet the evolving demands of a consumer packaged goods sector intent on promoting health, particularly through innovative solutions like calcium citrate for sleep. This positions Innophos more favorably in a market that prioritizes health-oriented products, including those featuring calcium citrate for sleep, thereby reinforcing its commitment to the health and wellness sector.
