Barclays Global
Consumer Staples
Conference
Jim Zallie
President and CEO
September 4, 2024
A leading global, plant-based ingredient solutions provider
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18,000 |
70 |
32 |
~500 |
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% |
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Customers in nearly |
2023 global new product |
Ingredion Idea |
Global food |
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120 countries |
launches contain |
Labs® |
technology |
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ingredients Ingredion |
innovation |
R&D scientists |
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produces2 |
centers |
Large and diversified ingredients business with customers
across consumer and industrial categories
100% 12,000
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Tier 1 crops |
Talented and |
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sustainably |
engaged |
Listed |
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sourced by |
employees |
Headquartered |
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122 years |
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20251 |
outside Chicago |
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1. Tier 1 crops are corn, tapioca, potato, stevia and pulses; 2. Innova 2023; includes: starches, modified starches, sugar & syrups, high-intensity sweeteners, fibers, flours, plant-based proteins, thickeners, and assorted fruit and |
3 |
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vegetable essences, juices, & purees |
$8.2B
2023 TOTAL NET SALES
(by customer type)
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54% |
15% |
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FOOD |
BEVERAGES AND |
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BREWING |
~70% food and beverage
21%10%
PAPERMAKING/ANIMAL
PACKAGING, PHARMA,NUTRITION PERSONAL CARE
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Strong sales and earnings growth
Net Sales
(in millions)
11%
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$6.0 |
$6.9 |
$8.0 |
$8.2 |
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2020 |
2021 |
2022 |
2023 |
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• Significantly reduced volatility within our business |
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• |
Expanded hedge programs |
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• Pricing centers of excellence |
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• |
Investments in high-growth areas of the business |
Adj. EPS1
(in dollars)
15%
$6.23 $6.67 $7.45
$9.42
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• |
Operational efficiency of global footprint |
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• |
Financial discipline and consistent capital |
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allocation |
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2020 |
2021 |
2022 |
2023 |
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1 See page 62 of the 2023 Annual Report for a reconciliation of this metric, which is not calculated in accordance with Generally Accepted Accounting Principles (GAAP), to the most comparable GAAP measures |
5 |
New segment structure leverages global operating model and drives innovation for future growth
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Texture & |
Food & Industrial |
Food & Industrial |
Other |
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Healthful Solutions |
Ingredients US/Can |
Ingredients LATAM |
(includes sugar reduction |
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and protein fortification) |
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Our new segments are driving focus to deliver "Better Ingredients" and "More Solutions" to create more value for customers and shareholders
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B E T T E R I N G R E D I E N T S |
M O R E S O L U T I O N S |
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Starches and sweeteners |
Texture & Healthful Solutions |
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Market |
Large but mature |
Large and growing with entrenched |
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Opportunity |
market position |
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Revenue |
Low and raw material influenced |
Higher and more consistent |
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Growth |
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Margin |
Steady margins and cash generative |
Higher margins based on customer value-add |
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Expansion |
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Capital |
CAPEX focused on reliability and |
Organic investments into higher |
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Allocation |
cost savings |
growth businesses and value accretive M&A |
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7
Texture increases enjoyment and impacts consumer choices
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Texture influences |
Texture adds |
Consumers like |
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Decision Making |
Interest and pleasure to |
Foods with |
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the Eating Experience |
Unusual Textures |
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60% |
73% |
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of consumers say texture |
of consumers say textures give |
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claims influence their |
food & drinks a more interesting |
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purchase decision |
and fun eating experience |
Sources: Innova Insights 2020 "Texture & the Consumer"; FMCG Gurus The Importance of Flavor, Color & Texture in 2022
50%
of global consumers* say they like food & drinks with an unusual texture
*Regional variations:
Africa/ME & APAC higher, SA & Europe lower
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Texture attributes can drive up to 70% of consumers'
product preferences
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Source: Ingredion internal and third party research |
9 |
The market for Texturizing Ingredients is large and growing
$20B*
MARKET
Starches
Hydrocolloids
Fibers
2-5%CAGR
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Starch |
Hydrocolloids |
Fibers |
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*Internally compiled detail across various sources including: Markets and Markets, Technavio, Market Data Research, Statista, Ingredion internal |
10 |
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intelligence |
The role of texture in differentiating consumer experiences and driving perceptions of health
Healthful
Do you associate any of the following
textures with being healthier?
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2020 |
2022 |
73% |
80% |
80% |
84% |
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70% |
71% |
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62% |
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49% |
54% |
59% |
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Texture TASTE Flavor
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Smooth |
Creamy |
Pulp |
Still |
Light |
- Consumers can develop perceptions of how healthy a product is or isn't without examining nutritional labeling
- Texture is something that shapes perceptions of the healthiness of a product1
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1 Sources: FMCG Gurus The Importance of Flavor, Color & Texture in 2022 |
11 |
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Disclaimer
Ingredion Incorporated published this content on 05 September 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on September 05, 2024 at 04:02:27 UTC.