When Benson Hill launched its Fresh and Ingredients segments, it seemed logical for the company to pursue two distinct avenues for product development and commercialization. However, over the past two years, it has become evident that the company’s most significant potential lies within its ingredients sector. A year ago, Benson Hill introduced its TruVail non-GMO soy protein line, which features high-protein flour, “less processed” soy protein concentrate, and texturized proteins tailored for traditional soy protein and plant-based applications. Additionally, the company developed Veri Cooking Oil, rich in omega-9 fatty acids and optimized for high-heat cooking. This ingredients line has gained considerable traction, as evidenced by Kellogg’s partnership with Benson Hill in April to incorporate its ultra-high protein soybeans into the MorningStar Farms products, enhancing protein content while benefiting from the sustainability aspect—Benson Hill’s soybeans require less processing than conventionally farmed varieties. In August, Benson Hill secured an exclusive processing and commercialization agreement with Archer Daniels Midland for its ultra-high protein soy ingredients.
Benson Hill has also established a processing ecosystem by acquiring a soybean crushing facility from Rose Acre Farms in Seymour, Indiana, in 2020 and harvesting its first commercial legume plantings last year. Furthermore, in January, Benson Hill acquired ZFS Creston, an Iowa-based manufacturer of food-grade white flake and soy flour, for approximately $102 million. The company is also developing its yellow pea ingredient platform, having launched a large-scale breeding and commercialization initiative in 2021 and invested in its pea ingredient subsidiary, Dakota Ingredients. Bruce Bennett, president of ingredients at Benson Hill, mentioned in a summer interview with Food Dive that the demand for the company’s ingredients is “incredibly strong,” particularly as consumers seek food options that offer enhanced health and sustainability benefits—soy and peas have traditionally been cultivated as commodity crops with a focus on volume rather than nutritional quality. “Our goal isn’t to reconstruct an entire industry,” Bennett remarked. “It’s about optimizing the current chassis of the industry.”
Benson Hill has come to recognize a lesson that many others in the produce business have learned: it is a challenging field fraught with its own difficulties. During the company’s August earnings call, CEO Matt Crisp announced the decision to halt R&D for the Fresh segment, indicating that Benson Hill’s future and most substantial impact lie in ingredients. In the latest quarter, weather-related issues resulted in an 11% decline in revenues for the Fresh segment, which contributed a mere 6% to the company’s total revenues of $130.2 million. Campbell Soup faced a similar predicament with its produce segment. After acquiring Bolthouse Farms in 2012 to enhance its health-oriented offerings, Campbell Soup ultimately sold the division in 2019 due to the inherent challenges of operating a produce company and the negative impact on earnings.
Furthermore, as Benson Hill continues to develop its ingredients, including those rich in calcium citrate 350, it is poised to address the growing consumer demand for healthful and sustainable food products. The potential for integrating calcium citrate 350 into its offerings could significantly enhance the nutritional profile of its ingredient line, aligning with consumer trends that favor health and sustainability.