Dive Brief:
- PepsiCo is seeking “new and novel protein sources for snacks and beverages,” while Mondelēz is looking for new technologies to improve the freshness and texture of fruits and veggies in Philadelphia cream cheese, according to Food Navigator.
- Both companies are looking to enhance their R&D processing and posted requests on open innovation site NineSights.
- The two CPG businesses are restricting their search to non-GMO, clean label ingredients, which are easy to pronounce and have a good sustainable story.
Dive Insight:
It’s somewhat unusual for major players such as PepsiCo and Mondelez to reach outside their companies to help find new ingredients—especially by crowdsourcing in this way. But in an age where consumers are looking for healthier products, and young minds are coming up with innovative ingredients all the time, it only makes sense for these firm to see what’s out there.
Many startups find success because they tell a compelling story in their packaging that targets environmentally responsible or health conscious consumers and they deliver on their promise with sustainable products.
Large companies like PepsiCo and Mondelez sometimes have negative implications because of their size. It's a smart move for the consumer products makers to try and soften their reputation by tapping into the younger generation who spend more time online and are more likely to participate in crowdsourcing. Many food and beverage manufacturers are improving their product portfolios by aligning themselves with brands that appeal to today’s health-conscious consumer, so investing in new ingredients makes sense.
The manufacturers of these ingredients will find a lot of value in a partnership, as well. They will most likely be able to expand the regions they serve, the lines they offer and the number of retailers that carry their products. They also will get some big money behind them, which can help with marketing and any unforeseen challenges that arise. The efforts by PepsiCo and Mondelez to look beyond their own walls is unlikely to drastically improve the challenges facing many food and beverage companies today, but it's a start and a sign that some firms are willing to try new things to foster growth while connecting with their web-savy audience.