Discovering Open Innovation at Tate & Lyle: Insights from Karen du Plessis

How does open innovation operate at the global ingredients giant Tate & Lyle? And what led to the winding down of its ventures arm? To shed light on these developments, AgFunderNews (AFN) spoke with Karen du Plessis (KDP), head of open innovation at the London-based firm specializing in sweeteners, fibers, proteins, and texturants. This discussion took place at the recent Future Food-Tech event in London.

Key Discussion Points

• Best practices for initiating successful collaborations
• Structuring startup deals for mutual benefit
• Recent examples of external innovation at Tate & Lyle
• The future of Tate & Lyle Ventures
• Collaboration framework with MassChallenge
• Lessons learned from past partnerships

External Innovation Structure at Tate & Lyle

AFN: How is external innovation structured at Tate & Lyle?

KDP: We utilize a hybrid model, with my focus solely on open innovation. My role often involves facilitating collaborations. There’s an immense pool of talent outside of Tate & Lyle, and collaboration is essential for accelerating innovation and delivering remarkable solutions to our customers.

Pathways to Collaboration

AFN: How do collaborations typically come about? Is it network-driven, tech scouting, or inbound inquiries?

KDP: It’s a mix of everything. Attending events like Future Food-Tech allows direct conversations with startups eager to engage. Our teams in sweetening and sugar reduction sectors also maintain connections with various market players, ensuring that we remain aware of trends and emerging opportunities.

Understanding MassChallenge

AFN: What is MassChallenge?

KDP: MassChallenge is a global accelerator program. We primarily engage with their Swiss program, which is focused on food and beverage, while also supporting the emerging UK platform. MassChallenge operates independently and does not take equity, which allows us to provide essential guidance and resources for startups navigating their growth challenges.

Target Startups for Collaboration

AFN: What type of startups do you prefer to work with?

KDP: Currently, we focus on startups close to commercialization while also exploring breakthrough innovations. We provide guidance in areas such as regulatory compliance and food labeling, enhancing their chances for success.

Creating Win-Win Partnerships

AFN: How do you structure deals with startups to ensure mutual benefits?

KDP: Successful partnerships begin with understanding the objectives of both parties. We avoid a one-size-fits-all approach, evaluating the commercial opportunity, the stage of the startup, and funding requirements. Our goal is to create flexible arrangements that encourage collaboration rather than exclusivity.

Recent Innovations in Action

AFN: Can you give examples of recent external innovations at Tate & Lyle?

KDP: Last year, we formed significant partnerships with Manus Bio, a producer of bio-converted Reb M stevia sweeteners, and BioHarvest Sciences, which focuses on sustainable production methods for rare sugars. Both partnerships aim for joint development to enhance our product lines sustainably.

The Shift from Tate & Lyle Ventures

AFN: How does open innovation relate to Tate & Lyle Ventures?

KDP: We decided to wind down Tate & Lyle Ventures. The challenges of managing equity stakes without a dedicated team led us to lean more towards collaborative models. This change allows us more flexibility in pursuing diverse commercial opportunities.

Addressing Corporate Perceptions

AFN: Do corporates tend to be seen as slow or bureaucratic?

KDP: Yes, there’s often a perception of corporates as sluggish. My role focuses on bridging that gap, facilitating better understanding of the processes involved in corporate innovation while acknowledging the unique challenges faced by startups.

Lessons Learned from Collaborations

AFN: What key lessons have emerged from your past partnerships?

KDP: A crucial takeaway is the importance of clearly defined work plans. Establishing roles, responsibilities, and milestones enables smoother collaboration and aligns expectations from both parties.

Exploring New Territories

AFN: Are you limited to current business areas or open to new territories through innovation?

KDP: We are absolutely open to exploring new territories. Engaging with the market helps us identify possibilities beyond our current business model, particularly as we address complex reformulation challenges for our customers.

Further Reading

🎥 Inside Danone’s open innovation model: From AI to Ozempic-era nutrition

🎥 How does front end innovation work at Givaudan? In conversation with Alexandre Bastos

🎥 Inside Novonesis’ playbook for external innovation in biotech