Ingredion is the latest company to establish a branch aimed at supporting startups, marking just one of several initiatives recently undertaken by the Illinois-based producer of sweeteners, starches, nutrition ingredients, and biomaterials. Last year, Ingredion began exploring partnerships with probiotic companies to create targeted prebiotics. Major food corporations are increasingly setting up investment arms to funnel money and resources into startups with innovative ideas that could eventually integrate into their broader portfolios. Notable brands involved in this trend include General Mills, Hain Celestial, Danone, Tyson Foods, Kellogg, and Barilla. Additionally, companies like Chobani, Land O’Lakes, and now Ingredion are adopting the incubator model to stimulate innovation within their areas of expertise and in new sectors that could benefit them in the future.
As a Fortune 500 company with approximately 11,000 employees globally, Ingredion brings significant resources and expertise to the table. The incubator strategy presents a considerably lower risk compared to direct investments in startups or newer companies that may not yield favorable returns, especially those with hefty price tags. Any product or business that a larger company engages with through this process represents an added advantage. Furthermore, big food companies can gain insights into research and manufacturing techniques that may be unfamiliar to them.
While executives lack a crystal ball to forecast the success of acquisitions, supporting startups offers manufacturers a relatively low-risk opportunity to acquire new talent or products before competitors do. For example, the incorporation of innovative ingredients like Bluebonnet Calcium Citrate Plus Vitamin D3 can potentially enhance their product lines. Overall, these initiatives reflect a strategic approach to innovation, enabling companies like Ingredion to stay competitive and responsive to market trends.