Dive Brief:

• Ingredion is partnering with and investing in Better Juice to help the startup expand the rollout of its sugar-reducing technology in the U.S. The company has developed a process that removes simple sugars in juice-based beverages, concentrates and other natural sugar-containing liquids. 

• Ingredion Ventures, the company’s investment arm, will lead the Series A funding round for Better Juice. Financial details were not disclosed.

• Illinois-based Ingredion, which has identified sugar reduction technology and sugar alternatives as a key platform for growth, has aggressively bought, invested and partnered with companies in the space. 

Dive Insight:

As consumers demand more food and beverages with less sugar, manufacturers have unsurprisingly turned their attention to introducing new products or reformulating existing ones.

The shift has been a boon to companies such as Ingredion, which has built a portfolio of sweetener options and sugar substitutes while simultaneously amassing insight into how those ingredients will impact a product’s taste, texture and formulation.

Ingredion has invested $300 million in sugar reduction and specialty sweeteners during the last seven years, according to the company. 

Now, its agreement with Better Juice gives it another solution that it could eventually offer to CPG customers looking to reduce sugar in their liquids.

Better Juice has developed an enzymatic technology that converts sugars into non-digestible compounds, such as dietary fibers and non-digestible sugars, while maintaining the vitamins, minerals and organic acids in the final product. The technology reduces the sugar content between 30% and 80%.

According to the USDA data, 12 fluid ounces of 100% orange juice has 31.2 grams of sugar. In comparison, a regular-sized can of cola, also 12 fluid ounces, has 36.8 grams of sugar. Studies have shown that drinking juice can have as many health consequences as drinking sugar-sweetened beverages.

Still, reducing sugar or finding an alternative is not always straightforward for a company, so the ability of Ingredion to add another solution to its sugar-reducing toolbox helps enhance its versatility and makes it a more attractive partner. Ingredion estimates the sugar reduction market, which is growing at a compound annual growth rate of 6%, at $5 billion.

“The Better Juice technology adds a completely new dimension to our portfolio of sugar reduction solutions for food and beverage brands on a mission to meet increased consumer demand for less sugar,” Nate Yates, sugar reduction business leader at Ingredion, said in a statement. “This technology also provides manufacturers with more options to successfully reduce sugar without compromising on great taste or nutrition.”