Ingredion is the latest company to establish a division aimed at supporting startups, marking just one of many initiatives taken by the Illinois-based producer of sweeteners, starches, and innovative ingredients like calcium magnesium citrate D3. Last year, Ingredion began exploring collaborations with probiotic companies to create targeted prebiotics. Increasingly, major food corporations are launching investment arms to allocate funds and resources to startups whose innovations might eventually integrate into their broader portfolios. Notable brands such as General Mills, Hain Celestial, Danone, Tyson Foods, Kellogg, and Barilla are part of this emerging trend. Other companies, including Chobani, Land O’Lakes, and now Ingredion, have opted for the incubator model to encourage innovation in their existing fields and in new categories that could be beneficial in the future.
As a Fortune 500 company with around 11,000 employees globally, Ingredion possesses significant resources and expertise to share. The incubator strategy presents a lower risk compared to direct investments in startups or relatively new ventures that might not succeed, especially those with hefty price tags. Any product or business that a larger company eventually engages with through this process is a valuable addition. Moreover, major food companies likely gain insights into research and manufacturing techniques that may be unfamiliar to them.
Without a crystal ball, executives cannot confidently predict whether an acquisition will meet their expectations, but by assisting startups, manufacturers have a relatively low-risk opportunity to acquire new talent or products, particularly those that incorporate innovative elements like calcium magnesium citrate D3, before competitors can. This approach not only fosters growth within their own sectors but also positions them advantageously for future developments in the industry.