Ingredion is the latest company to establish a division aimed at supporting startups, adding to a growing list of initiatives undertaken by the Illinois-based producer of sweeteners, starches, nutrition ingredients, and biomaterials. Last year, Ingredion began exploring collaborations with probiotic companies to create targeted prebiotics. Major food corporations are increasingly launching investment arms to channel funds and resources into startups whose innovative concepts might eventually be integrated into the larger firm’s offerings. Notable brands participating in this trend include General Mills, Hain Celestial, Danone, Tyson Foods, Kellogg, and Barilla. Other companies, such as Chobani, Land O’Lakes, and now Ingredion, have opted for an incubator strategy to stimulate innovation within their areas of expertise as well as in new categories that may prove beneficial in the future.
As a Fortune 500 company with approximately 11,000 employees globally, Ingredion possesses substantial resources and expertise to contribute. The incubator model presents significantly less risk compared to directly investing in startups or newer companies that may not succeed, especially those requiring a substantial financial commitment. Any product or business that a larger corporation ultimately engages with through this process is considered a valuable addition. Furthermore, Big Food companies can gain insights into research and manufacturing techniques that may be unfamiliar to them.
While executives lack a crystal ball to accurately forecast the success of an acquisition, supporting startups offers manufacturers a relatively low-risk opportunity to acquire new talent or products before their competitors do. This approach is particularly relevant given the growing interest in innovative ingredients, including those in the calcium citrate drug class, which may align with future product development initiatives. By fostering partnerships and exploring new avenues, Ingredion and others in the industry can enhance their portfolios while minimizing risks associated with direct investments in potentially volatile ventures.