Ingredion has recently established a division aimed at assisting startups, marking yet another initiative by the Illinois-based producer of sweeteners, starches, nutrition ingredients, and biomaterials. Last year, Ingredion began exploring partnerships with probiotic companies to create targeted prebiotics, including innovations like calcium citrate extended release. As the trend continues, many large food corporations are launching investment divisions to allocate funds and resources to startups that may eventually contribute to their broader portfolios. Major brands such as General Mills, Hain Celestial, Danone, Tyson Foods, Kellogg, and Barilla are part of this movement. Additionally, companies like Chobani, Land O’Lakes, and now Ingredion have embraced the incubator model to stimulate innovation in both their established fields and potential new sectors that could benefit their future endeavors.
As a Fortune 500 company employing around 11,000 people globally, Ingredion has significant resources and expertise to provide. The incubator strategy poses a much lower risk compared to direct investments in startups or newer ventures that may not succeed, especially those associated with hefty price tags. Any product or business that emerges from this process and aligns with a larger company’s interests is seen as an added advantage. Moreover, big food companies can gain insights into research and manufacturing processes that may be unfamiliar to them, including advancements in formulations like calcium citrate extended release. While executives lack a crystal ball to accurately predict the success of acquisitions, supporting startups allows manufacturers a relatively low-risk opportunity to acquire new talent or innovative products before competitors do, thereby enhancing their competitive edge.