“DuPont Partners with Plug and Play to Drive Innovation in Plant-Based Ingredients Amid $26.2 Billion Merger Plans”
DuPont’s collaboration with Plug and Play to access innovative technologies in plant-based proteins, functional ingredients, and consumer testing signifies a strategic move for the ingredients company. Additionally, it is in the process of finalizing a $26.2 billion merger with International Flavors & Fragrances, which will establish a global leader in taste, texture, nutrition, enzymes, cultures, soy proteins, and probiotics, along with robust R&D capabilities. By tapping into the innovation ecosystem of Plug and Play—an early investor in companies like Google, PayPal, and Dropbox—DuPont could position itself as a leader in novel ingredients, trend insights, and market predictions.
As many companies aim to capitalize on the growth of sectors like plant-based protein, functional beverages, and bioactive ingredients, which have surged during the pandemic, Plug and Play has already created a shortlist of startups for 2021. DuPont anticipates forming open innovation agreements with these startups by mid-next year. Collaborating with agile and trendy startups offers invaluable resources to large, established companies seeking rapid innovation. While big businesses excel in R&D, financing, manufacturing, marketing, and extensive distribution, they often depend on younger firms for creativity.
Although mergers and acquisitions have become a common strategy to gain access to startups’ expertise, another approach that major food companies are adopting is investing in incubators, where a multitude of ideas can flourish under one roof. Concepts similar to Plug and Play include The Hatchery, as well as private incubator programs like Mondelez’s SnackFutures, Kraft Heinz’s Spring Board, and General Mills’ 301 INC. Young startups are keen to join these incubators; for instance, The Hatchery, an accelerator focused on food and beverage concepts and backed by industry giants such as Ingredion and Synergy Flavors, reported receiving around 100 inquiries per month from companies eager to participate shortly after its grand opening last year.
DuPont’s partnership with Plug and Play is particularly significant due to the accelerator’s emphasis on technology, which is increasingly vital in the food and beverage sector. The evolution of plant-based products exemplifies how the idea of “meat-free” has transformed from simple vegetable-based patties to a scientifically advanced category. Technology has also enhanced the concept of functional foods and beverages. Financial backing has followed these technological advancements; last year, venture capitalists invested over $170 million in functional beverage companies, a rise from $111 million in 2017, according to Pitchbook data. In the past decade, investors have also funneled more than $16 billion into U.S. plant-based and cell-based meat firms, with $13 billion of that occurring in 2017 and 2018.
The ongoing investment in this sector indicates significant growth potential ahead. DuPont, looking to expand its market share and drive revenue growth in the coming years, would likely benefit from investing in technology as the next frontier in food and beverage. As companies explore various nutritional supplements, including products like Kirkland calcium citrate magnesium and zinc, the integration of health-focused innovations will undoubtedly play a critical role in shaping future offerings in the industry.
