The Company
Ingredion Incorporated (“Ingredion”) is a leading global ingredients
solutions provider. We turn corn, tapioca, potatoes, and other
vegetables and fruits into value-added ingredients and biomaterials
for the food, beverage, paper and corrugating, brewing and other
industries. Ingredion was incorporated as a Delaware corporation in
1997 and its common stock is traded on the New York Stock Exchange.
On December 29, 2016, we completed our acquisition of TIC Gums
Incorporated (“TIC Gums”), a privately held, U.S.-based company that
provides advanced texture systems to the food and beverage industry
for $395 million, net of cash acquired. Consistent with our Strategic
Blueprint for growth, this acquisition enhances our texture capabilities
and formulation expertise and provides additional opportunities for us
to provide solutions for natural, organic and clean-label demands of
our customers. TIC Gums utilizes a variety of agriculturally derived
ingredients, such as acacia gum and guar gum, to form the foundation
for innovative texture systems and allow for clean-label reformulation.
Specialty Ingredients
We consider certain of our starch and sweetener
products to be specialty ingredients. Specialty ingredients comprised
approximately 26 percent of our net sales for 2016, up from 25 percent
and 24 percent in 2015 and 2014, respectively. Our specialty ingredients
are aligned with growing market and consumer trends such as health
and wellness, clean-label, affordability, indulgence,and sustainability.
We plan to drive growth for our specialty ingredients portfolio by
leveraging the following five growth platforms: Wholesome, Texture,
Nutrition, Sweetness, and Biomaterial Solutions
Ingredion’s Customer Benefit Platforms
Five key, highly market- and customer-relevant areas of
focus guide our specialty ingredient growth strategies:
CLEAN & SIMPLE
Helping customers deliver products with fewer and more-familiar ingredients on a label
HEALTH & NUTRITION
Helping customers address key consumer trends, weight management, digestive health, sugar and
calorie reduction, plant proteins and more
SENSORY EXPERIENCE
Helping customers better understand consumer
preferences and develop sensory attributes for
competitive advantage
AFFORDABILITY
Helping customers refine recipes and
improve manufacturing to reduce costs without
compromising quality
CONVENIENCE & PERFORMANCE
Delivering ingredient solutions that help improve
functional performance, process efficiency,
product stability, and sustainability
The Market for Registrant’s Common Equity, Related
Stockholder Matters and Issuer Purchases of Equity Securities
Shares of our common stock are traded on the New York Stock
Exchange (“NYSE”) under the ticker symbol “INGR.” The number of holders of record of our common stock was 4,446 on January 31, 2017. We have a history of paying quarterly dividends. The amount and timing of the dividend payment, if any, is based on a number of factors including estimated earnings, financial position, and cash. The payment of a dividend is solely at the discretion of our Board of Directors. Future dividend payments will be subject to our financial results and the availability of funds and statutory surplus to pay dividends.
The quarterly high and low market prices for our common stock
and cash dividends declared per common share for 2015 and 2016.
| 1st Qtr | 2tnd Qtr | 3rd Qtr | 4th Qtr | |
| 2016 | ||||
| Hign | $108.00 | $129.42 | $140.00 | $137.62 |
| low | $84.57 | $104.24 | $128.18 | $113.92 |
| DPS | $0.45 | $0.45 | $0.50 | $0.50 |
| 2015 | ||||
| High | $86.80 | $83.00 | $93.87 | $99.64 |
| low | $75.11 | $76.26 | $79.31 | $85.85 |
| DPS | $0.42 | $0.42 | $0.45 | $0.45 |
Ingredion has built a strong presence around the world and in some of the largest and fastest-growing markets. This positions our Company for long-term, profitable growth in a number of local, regional and global market environments while balancing potential risks
Large, stable market with growth opportunities in health and wellness and clean-label
Clean-label ingredients remain in demand in Europe. Rising incomes elsewhere in the region help bolster core products.
Expanding middle class supports long-term growth potential in the region.
Population and income growth fuels continued robust expansion in specialty products
Worldwide presence
Ingredion’s manufacturing, R&D and sales presence across North America, South America, APAC and EMEA creates a solid, long-term foundation for growth. Our global scale and supply chain also offer significant cost efficiencies that support customer competitivenessLocal innovation
Food is a local business. Our 27 ingredion idea Labs located throughout the world combine world-class collective expertise with local knowledge to develop new, on-trend ingredient solutions and help customers get products to market faster and more efficiently.
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Our management, including our Chief Executive Officer and our Chief Financial Officer, performed an evaluation of the effectiveness of our disclosure controls and procedures as of December 31, 2016. Based on that evaluation, our Chief Executive Officer and our Chief Financial Officer concluded that our disclosure controls and procedures are effective in providing reasonable assurance that all material information required to be filed in this report has been recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and are designed to ensure that information required to be disclosed in the reports we file or submit under the Securities Exchange Act of 1934, as amended is accumulated and communicated to our management, including our principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.
Our management is responsible for establishing and maintaining adequate internal control over financial reporting. This system of internal controls is designed to provide reasonable assurance that assets are safeguarded and transactions are properly recorded and executed in accordance with management’s authorization.
