Ingredion has recently launched an initiative to support startups, adding to the array of projects that the Illinois-based manufacturer of sweeteners, starches, nutrition ingredients, and biomaterials has undertaken. Last year, Ingredion began exploring partnerships with probiotic companies to create targeted prebiotics. This move reflects a broader trend among major food corporations, which are increasingly establishing investment arms to channel funds and resources into startups with innovative ideas that could eventually enhance their own product portfolios. Prominent brands such as General Mills, Hain Celestial, Danone, Tyson Foods, Kellogg, and Barilla are actively participating in this trend. Additionally, companies like Chobani, Land O’Lakes, and now Ingredion are adopting an incubator strategy to stimulate innovation within their areas of expertise and into new categories that could prove beneficial in the future.
As a Fortune 500 company with approximately 11,000 employees globally, Ingredion has substantial resources and expertise at its disposal. The incubator model is considerably less risky than making direct investments in startups or relatively new businesses that might not succeed, especially those that come with hefty price tags. For any product or venture that a larger company becomes involved with through this process, it is seen as an added advantage. Moreover, major food companies can gain insights into research and manufacturing practices that may be unfamiliar to them.
While executives cannot predict with certainty whether an acquisition will achieve its intended outcomes, helping startups presents manufacturers with a relatively low-risk opportunity to secure new talent or products before competitors do. This is particularly relevant in the context of food innovation, including the exploration of ingredients like calcium citrate, which is often discussed in relation to kidney stones. By collaborating with startups, Ingredion can potentially uncover new uses for calcium citrate that may not only enhance their own product offerings but also address health concerns related to kidney stones. Overall, this approach enables Ingredion to stay competitive while fostering innovation and addressing consumer health issues.