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Dive Overview:
- Ingredion, an Illinois-based ingredients supplier Reported Second quarter net income was $148 million As of June 30, revenue was down 9% from $163 million in the same period last year.
- The company said it would continue to focus on its Texture and Healthy Solutions division and would devote resources to sugar-reduced products.
- Ingredion recently hired Mike Leonard as chief innovation officer, who is focused on improving research and development processes for its Texture and Healthy Solutions division, whose sales grew 8% year over year.
Dive Insights:
In recent months, Ingredion I am working Expanding into the dairy and vegan sectors It will expand the portfolio and provide manufacturers with healthier options for their products.
The company announced a restructuring in November 2023 to focus on the category and move away from operating at a regional level.
The company is also seeing improvement in savory foods categories such as dressings and sauces, CEO Jim Zallie said during an earnings call on Tuesday.
“While demand from fast food restaurants and dining out has slowed in the second quarter, demand for batters and coatings for frozen chicken and french fries cooked at home has increased.” “It’s a category,” he said.
The company’s sugar reduction business saw net sales increase 10%. “During the quarter, we increased our investment and ownership in PureCircle by $40 million, bringing our equity ownership to 98%,” Zallie said.
The company launched a product in partnership with Purecircle in May. The naturally derived sweetener replicates the taste of sugar without any additives, and the company says the product can be used in beverages, syrups, sauces and more.
Leonard has been focused on collaborating with experts in the healthcare sector to continue to strengthen both its sugar reduction strategy and its Texture & Healthy Solutions segment.
““As an ingredient company, when we introduce a new product, especially if it’s related to a potential claim that our customers can make, we want to make sure that the environment has already been fostered for that new ingredient to thrive from a thought leadership standpoint,” Leonard previously told Food Dive in an interview.
