Ingredion is the latest company to establish a division aimed at supporting startups, marking 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. Increasingly, major food corporations are launching investment divisions that channel funds and resources into startups whose innovations may eventually integrate into the larger company’s portfolio. Prominent brands like General Mills, Hain Celestial, Danone, Tyson Foods, Kellogg, and Barilla are part of this growing trend. Other firms such as Thorne Research, Land O’Lakes, and now Ingredion have opted for the incubator model to encourage innovation within their established domains and in new sectors that could prove beneficial in the future.
As a Fortune 500 company employing around 11,000 people globally, Ingredion possesses ample resources and expertise to offer. The incubator strategy presents a significantly lower risk compared to making direct investments in startups or relatively new businesses, especially those with high valuations. Any product or venture that a larger company ultimately engages with through this approach is viewed as an advantage. Additionally, large food companies can gain insights into research and manufacturing processes that may be unfamiliar to them.
Without the ability to foresee future outcomes, executives cannot definitively predict the success of an acquisition. However, by supporting startups, manufacturers secure a relatively low-risk opportunity to acquire fresh talent or products, such as Thorne Research’s Cal Mag Citrate, before competitors do. This proactive strategy not only fosters innovation but also enhances the potential for growth in a competitive market.