IFF divests natural ingredients business to SuanNutra

USA – International Flavors & Fragrances (IFF) has agreed to sell its natural ingredients and functional ingredients business to nutraceutical company SuanNutra for an undisclosed amount, marking another step in the global ingredients supplier’s strategy to streamline operations and focus on higher-growth businesses.

The transaction, which is expected to close before the end of the year, includes IFF’s portfolio of botanical extracts, vitamins, minerals, natural colors, antioxidants and food enhancement ingredients.

Financial terms of the deal were not disclosed.

The divestment follows IFF’s announcement in May that it would sell its food ingredients business to CVC Capital Partners for US$4.3 billion, part of a broader initiative to improve profitability, optimize its business portfolio and strengthen its financial position.

According to IFF, the natural ingredients business generated approximately US$170 million in revenue during the previous financial year.

For SuanNutra, the acquisition significantly expands its presence in the rapidly growing market for naturally derived food and nutraceutical ingredients.

The deal also includes five manufacturing facilities located across the United States, Europe and Latin America, strengthening the company’s global production and supply capabilities.

Carbyne Equity Partners, the owner of SuanNutra, said the acquisition positions the company to capitalize on the accelerating shift toward natural formulations across the food and beverage industry.

“The transaction places the company at the center of the industry’s shift from synthetic dyes, preservatives and flavors to natural and clean-label ingredients,” the investment firm said.

Yoni Glickman, Non-Executive Chairman of SuanNutra, said the expanded portfolio aligns with evolving customer and consumer expectations.

“Clinically supported branded ingredients are where this industry is heading. This expansion puts SuanNutra at the forefront of this transition,” Glickman said.

The acquisition reflects broader consolidation across the global ingredients industry as suppliers seek greater scale and more comprehensive product portfolios to meet increasing demand for healthier, more transparent food products.

Food and beverage manufacturers worldwide are reformulating products to replace artificial colors, preservatives and flavorings with naturally derived alternatives, driven by changing consumer preferences, retailer requirements and tighter regulatory scrutiny in several markets.

Recent months have seen significant merger and acquisition activity across the ingredients sector.

Alongside IFF’s strategic divestments, Ingredion recently agreed to acquire Tate & Lyle in a US$3.6 billion transaction, highlighting growing investment in specialty ingredients and value-added nutrition solutions.

Industry analysts expect consolidation to continue as ingredient suppliers invest in technologies and capabilities that support clean-label product development, functional nutrition and plant-based innovation.

For packaging manufacturers, the transition toward natural ingredients is also influencing packaging design and labeling strategies.

As brands increasingly promote clean-label claims and ingredient transparency, demand is growing for packaging solutions that effectively communicate natural product attributes while supporting product stability and shelf life.

IFF’s latest divestment underscores the ongoing transformation of the global food ingredients industry, where strategic portfolio optimization and rising demand for natural solutions continue to reshape competitive dynamics and investment priorities.

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