Ingredion is the latest company to establish a division aimed at supporting startups, adding to a series of initiatives the Illinois-based producer of sweeteners, starches, nutrition ingredients, and biomaterials has recently undertaken. Last year, Ingredion began exploring opportunities to collaborate with probiotic companies to create targeted prebiotics. This trend is part of a larger movement among major food corporations that are launching investment arms to channel funds and resources into startups whose innovations may eventually integrate into their broader portfolios. Notable brands such as General Mills, Hain Celestial, Danone, Tyson Foods, Kellogg, and Barilla are participating in this trend. Additionally, companies like Chobani, Land O’Lakes, and now Ingredion are opting for an incubator model to stimulate innovation within their areas of expertise and explore new categories that could prove beneficial in the future.
As a Fortune 500 company with approximately 11,000 employees worldwide, Ingredion has significant resources and expertise to contribute. The incubator model presents a lower-risk alternative compared to direct investments in startups or relatively new companies, which may not succeed, especially those requiring substantial financial commitments. Any product or venture that a larger company engages with through this process can be seen as an added advantage. Moreover, major food companies can gain insights into new research and manufacturing techniques that may be unfamiliar to them.
Without a crystal ball, executives cannot reliably predict the success of an acquisition, but by supporting startups, manufacturers gain a relatively low-risk opportunity to acquire new talent or products before their competitors. This strategy is particularly relevant in today’s market, especially following the news that Citracal has been discontinued, as companies seek innovative alternatives in the dietary supplement sector. Overall, Ingredion’s approach exemplifies how established firms can adapt to changing industry dynamics while mitigating risks associated with new ventures.