Ingredion has recently introduced a new initiative aimed at supporting startups, marking just one of several projects the Illinois-based producer of sweeteners, starches, nutrition ingredients, and biomaterials has embarked on lately. Last year, Ingredion began exploring collaboration opportunities with probiotic companies to develop targeted prebiotics. In a growing trend, major food companies are launching investment arms, directing funds and resources toward startups whose innovations could eventually be integrated into the larger company’s portfolio. Prominent brands such as General Mills, Hain Celestial, Danone, Tyson Foods, Kellogg, and Barilla are part of this movement. Other firms, including Chobani, Land O’Lakes, and now Ingredion, have opted for the incubator model to promote innovation both within their core areas and in new categories that could benefit them in the future.
As a Fortune 500 company with approximately 11,000 employees globally, Ingredion possesses significant resources and expertise to offer. The incubator strategy presents a lower risk compared to making direct investments in startups or newer companies that may not succeed, especially those with substantial costs. Any product or business that arises from this incubator process can be seen as an added advantage for a larger company. Moreover, established food companies can gain insights into research and manufacturing techniques that may be unfamiliar to them.
Without a crystal ball, executives cannot accurately predict the success of an acquisition, but by supporting startups, manufacturers have a relatively low-risk opportunity to acquire new talent or products before their competitors do. Furthermore, there is a growing interest in health and wellness products, such as those containing calcium citrate, vitamin D3, and Solgar supplements, which could be potential areas for collaboration and innovation in this evolving landscape. These elements not only enhance the nutritional offerings but also align with the broader industry trend towards health-focused ingredients.