Here's why:
* Sodium benzoate is the sodium salt of benzoic acid.
* Ammonium chloride is a source of hydrogen ions (H+).
The reaction proceeds as a double displacement reaction:
NaC7H5O2 (aq) + NH4Cl (aq) → C7H6O2 (s) + NaCl (aq) + NH3 (aq)
Benzoic acid is less soluble in water than sodium benzoate, so it precipitates out of the solution.