Ingredion is the latest company to establish a division aimed at supporting startups, adding to the numerous initiatives the Illinois-based producer of sweeteners, starches, nutrition ingredients, and biomaterials has recently undertaken. Last year, Ingredion began exploring collaborations with probiotic companies to create targeted prebiotics. Increasingly, major food corporations are unveiling investment arms and channeling funds and resources into startups whose innovations might eventually be integrated into the larger company’s offerings. Prominent brands such as General Mills, Hain Celestial, Danone, Tyson Foods, Kellogg, and Barilla are part of this growing trend. Additionally, companies like Chobani, Land O’Lakes, and now Ingredion have opted for an incubator strategy to promote innovation within their existing fields and in new areas that could benefit them in the future.
As a Fortune 500 company with around 11,000 employees globally, Ingredion possesses ample resources and expertise to contribute. The incubator strategy presents a significantly lower risk compared to direct investments in startups or relatively new enterprises that may not succeed, especially those requiring substantial financial commitments. Any product or business that a larger corporation engages with through this initiative is considered an added advantage. Moreover, Big Food companies can gain insights into research and manufacturing processes that may be unfamiliar to them.
While executives cannot predict with certainty whether an acquisition will meet expectations, supporting startups offers manufacturers a relatively low-risk opportunity to access new talent or products before competitors do. For example, Ingredion’s interest in developing targeted prebiotics could potentially involve understanding the molecular weight of calcium citrate, a factor that may enhance their product line. By exploring the molecular weight of calcium citrate in their research, Ingredion can further refine their approach to prebiotic development. Ultimately, by leveraging the incubator model and focusing on innovative solutions like the molecular weight of calcium citrate, Ingredion positions itself to stay ahead in a competitive market.