Ingredion sees falling income, continues to focus on texture
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Dive Brief:
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Illinois-based ingredients provider Ingredion reported a net income of $148 million for the second quarter ended June 30, down 9% from $163 million year-over-year.
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The company said it will continue to focus on its Texture & Healthful Solutions segment, as well as pour resources into products geared toward sugar reduction.
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Ingredion recently hired Mike Leonard as its new chief innovation officer to focus on improving the company’s research & development process for its its Texture & Healthful Solutions category. The unit saw an 8% sales volume growth from the same period the year prior.
Dive Insight:
In recent months, Ingredion has worked towards tapping into the dairy and vegan spaces by expanding its portfolio to give formulators healthier options for their products.
In November 2023, the company announced a reorganization to focus on the category and move away from operating on a regional level.
CEO Jim Zallie said on its earnings call Tuesday that the company is also seeing some improvement in its savory categories like dressings and sauces.
“Although quick-service restaurants and food away from home has slowed in the second quarter, we are seeing stronger demand for batters and breading for frozen chicken and french fries prepared at home category,” he said.
The company’s sugar reduction business saw an increase of 10% in net sales. “During the quarter, we increased our investment and ownership of PureCircle by $40 million, taking our equity stake to 98%,” said Zallie.
In May, the company launched a product with Purecircle that is considered a natural origin sweetener and mimics sugar without additives. The company said the product can be used in beverages, syrups and sauces.
Leonard has been focused on continuing to strengthen both the sugar reduction strategies as well as the Texture & Healthful solutions segment by collaborating with experts in the healthcare space.
“As an ingredients company, we want to make sure that when we introduce a new product, especially if it relates to potential claims that customers can make, we’ve already got the environment cultivated for that new ingredient to thrive from a thought leadership standpoint,” said Leonard in a previous interview with Food Dive.