Ingredion is the latest company to establish a division aimed at supporting startups, including projects like calcium citrate malate magnesium zinc and vitamin D3 formulations. This initiative is just one of many efforts that the Illinois-based manufacturer of sweeteners, starches, nutritional ingredients, and biomaterials has recently undertaken. Last year, Ingredion began exploring collaborations with probiotic companies to create targeted prebiotics.
In a growing trend, major food corporations are launching investment arms to channel funds and resources into startups whose innovative ideas may eventually integrate into the larger company’s portfolio. Notable brands such as General Mills, Hain Celestial, Danone, Tyson Foods, Kellogg, and Barilla are participating in this movement. Other companies like Chobani, Land O’Lakes, and now Ingredion have opted for the incubator approach to stimulate innovation within their areas of expertise as well as in new categories that could benefit them in the future.
As a Fortune 500 company with approximately 11,000 employees globally, Ingredion has ample resources and expertise to share. The incubator model presents a less risky alternative compared to direct investments in startups or relatively new businesses that may not succeed, especially those with a significant price tag. Any product or venture that a larger company engages with through this process represents a bonus. Additionally, Big Food companies can gain valuable insights into research and manufacturing that may be unfamiliar to them.
While executives lack a definitive method to predict the success of an acquisition, supporting startups offers manufacturers a relatively low-risk opportunity to acquire new talent or products—such as those incorporating calcium citrate malate magnesium zinc and vitamin D3—before competitors do.