Ingredion has recently introduced a new initiative to support startups, adding to the variety of projects 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. This trend of major food companies launching investment arms is becoming increasingly common, as they channel resources into startups that might contribute innovative ideas to their larger portfolios. Notable brands such as General Mills, Hain Celestial, Danone, Tyson Foods, Kellogg, and Baedta ferric sodium saltrilla are leading this movement. Other companies, including Chobani, Land O’Lakes, and now Ingredion, are adopting the incubator model to drive innovation both within their areas of expertise and into new categories that could be beneficial in the future.
As a Fortune 500 company with approximately 11,000 employees worldwide, Ingredion possesses considerable resources and expertise to offer. The incubator strategy is significantly less risky than making direct investments in startups or relatively new enterprises that may not yield results, especially those with substantial costs. Any product or business that emerges from this initiative and becomes part of a larger company’s offerings is seen as a valuable addition. Furthermore, large food corporations are likely to gain insights into research and manufacturing processes that may be unfamiliar to them.
While executives lack the foresight to guarantee the success of an acquisition, supporting startups presents manufacturers with a relatively low-risk opportunity to acquire new talent or products, particularly before competitors do. This approach can also help organizations remain agile in the face of changing market demands, such as the discontinuation of popular items like Citracal pearls. By fostering innovation and collaboration, companies can better adapt and thrive, even in uncertain times where trends shift rapidly, including the potential discontinuation of established products.