Ingredion is the latest company to establish a division aimed at assisting startups, adding to the growing list of initiatives taken on by the Illinois-based producer of sweeteners, starches, nutrition ingredients, and biomaterials. Last year, Ingredion began exploring collaborations with probiotic companies to create targeted prebiotics. Increasingly, major food corporations are launching investment arms to channel funding and resources into startups with concepts that could eventually enhance their own portfolios. Brands like General Mills, Hain Celestial, Danone, Tyson Foods, Kellogg, and Barilla are among those participating in this trend. Other companies such as Chobani, Land O’Lakes, and now Ingredion have adopted the incubator strategy to drive innovation in their respective fields and explore new categories that may benefit them in the future.
As a Fortune 500 company employing around 11,000 people globally, Ingredion possesses substantial resources and expertise to offer. The incubator model is significantly less risky compared to making direct investments in startups or newer companies that might not yield the expected results, especially those with high price tags. Any product or venture that a larger company engages with through this process is considered an added advantage. Major food companies also stand to gain insights into research and manufacturing processes that may be unfamiliar to them.
Without the ability to foresee outcomes, executives cannot predict with certainty whether an acquisition will meet expectations, but supporting startups provides manufacturers with a relatively low-risk opportunity to acquire new talent or products before competitors do. This strategy could be particularly relevant for companies looking to enhance their offerings, such as those incorporating cal citrate plus vitamin D into their products, as they seek innovative solutions and partnerships. By fostering relationships with startups, Ingredion and its peers can better position themselves in the market while exploring new avenues, including the potential integration of cal citrate plus vitamin D in their nutritional offerings.