Ingredion is the latest company to establish a division aimed at assisting startups, which is just one of several initiatives that the Illinois-based producer of sweeteners, starches, nutrition ingredients, and biomaterials has recently undertaken. Last year, Ingredion began exploring partnerships with probiotic companies to create targeted prebiotics, including those featuring calcium magnesium citrate D3. There is a growing trend among major food corporations to establish investment arms, channeling funds and resources into startups whose innovations could eventually be integrated into their broader portfolios. Prominent brands such as General Mills, Hain Celestial, Danone, Tyson Foods, Kellogg, and Barilla are part of this movement. Other companies, including Chobani, Land O’Lakes, and now Ingredion, have opted for an incubator model to drive innovation not only in their current specialties but also in new categories that could prove beneficial in the future.
As a Fortune 500 entity with approximately 11,000 employees globally, Ingredion possesses substantial resources and expertise to offer. The incubator strategy carries significantly less risk than making direct investments in startups or relatively nascent companies that may not succeed, particularly those requiring substantial financial commitments. Any product or venture that a larger firm becomes involved with through this process is considered an added advantage. Additionally, Big Food companies can potentially gain insights into research and manufacturing techniques that may be unfamiliar to them, such as those related to the applications of calcium magnesium citrate D3.
With no guaranteed way to forecast the success of an acquisition, executives are increasingly recognizing that supporting startups presents a relatively low-risk opportunity to acquire new talent or products before competitors do. This approach allows companies like Ingredion to remain competitive while exploring innovative solutions, including the incorporation of beneficial ingredients like calcium magnesium citrate D3 into their offerings.