Food & Beverages

Extract from a longer article on the evolving role of patents as B2C industries shift toward technology-based competitiveness.

In the Food & Beverages (F&B) segment, digitalisation and sustainability continue to influence industry evolution. Digital technologies such as data analytics and IoT sensors enable companies like Mondelez International, GEA Group and Tetra Laval to enhance operational efficiency, optimise logistics, and reduce waste. This segment is also seeing innovation in business models especially at the retail-side with the introduction of meal kit subscriptions and grocery subscription services from companies like HelloFresh, Blue Apron and Instacart. At the same time, sustainability remains important as zero-waste initiatives and eco-friendly practices address regulatory requirements and consumer expectations.

Another key driver reshaping the F&B segment today is the pursuit of functional improvements, particularly enabled by advancements in bio-engineering and food tech. Companies like The Coca Cola Company and Nestlé are investing in tech-driven formulations to provide heathier alternatives, improve nutrition and shelf life, and enhance sensory experiences through innovative flavours. These innovations directly improve product quality, consumer satisfaction, and market competitiveness.

Patents can play an important role in securing advanced food technology breakthroughs and help expand market share, drive differentiation, and increase profitability. Patenting in this segment is primarily driven by ‘Consistent Innovators’ like The Pepsi, Mars and The Coca Cola Company with patents related to food tech such as innovative beverage formulation and healthier alternatives driving supply side and production innovation. Relatively new entrants like Instacart could be considered ‘Rapid Expanders’, but they start from low patent levels and scale their filings as they drive retail-side innovation and grow their businesses. Numerous players in this segment remain ‘Sporadic Filers’ or ‘Dormant Players’ with limited or no patent portfolios.

Examples of how Food & Beverages companies leverage patented food tech to drive differentiation and profitability

Nestlé asserts IP rights to maintain competitive edge in its plant- and protein-based business

Nestlé has built a patent portfolio focused on nutritional supplements and plant-based alternatives, filing over 270 patents related to proteins over the past decade. In April 2023, Nestlé and French machinery manufacturer Clextral successfully challenged a key patent held by Dutch company Ojah regarding plant-based protein structuring technology, resulting in the complete revocation of Ojah’s patent. While the precise market advantage remains uncertain, the case illustrates Nestlé’s proactive strategy to secure differentiation and protect its competitive positioning in plant-based foods.

DSM-Firmenich combines innovation and patent enforcement to strengthen market position

Given its focus on health-driven and sustainable food solutions, it is natural for European ingredients and biosciences company DSM-Firmenich to invest in protecting its technological advancements. As part of this strategy, the company actively enforces its patents to safeguard its market position. In November 2024, DSM-Firmenich won a patent infringement case against the Canadian company, Mara Renewables Corporation for infringing its patented high-purity DHA omega-3 oils production technology. This case underscores DSM-Firmenich’s strategic use of patent enforcement to defend its innovation leadership in the food-tech and active nutrition markets.

The Coca-Cola Company targets market power through patented sweetener and flavour innovations

The Coca-Cola Company (TCCC) has built a patent portfolio in innovative beverage formulations to meet changing consumer preferences. Nearly 40% of its recent patents relate to sweetening agents, flavourings, and healthier compositions. Among these, TCCC holds patents covering high-potency sweetener blends, including rebiana, erythritol, and natural ingredients such as kola nut and green tea. These patented formulations aim to deliver a reduced-calorie yet sugar-like taste, potentially enhancing consumer appeal. While direct market impact remains to be seen, leveraging these patented technologies could strengthen TCCC’s bargaining position within its value chain and potentially drive margin improvements.

Impossible Foods enforces its IP rights to secure differentiation in plant-based food innovation

Impossible Foods has built a patent portfolio to protect its plant-based meat technology and to differentiate its products in the competitive market for meat alternatives. In March 2022, it filed a lawsuit against Motif FoodWorks alleging infringement of its patented heme-containing meat substitute technology. Motif responded by challenging the patent’s validity. The companies settled the dispute in August 2024. While the commercial impact of patent enforcement is uncertain, this case demonstrates Impossible Foods’ commitment to actively protecting its IP assets, potentially reinforcing its market differentiation in plant-based food innovation.

F&B companies are increasingly leveraging food tech such as biotech-enhanced ingredients, functional foods, and personalised nutrition to deliver next-generation products with improved health benefits and sensory experiences. The aim is often to create differentiated offerings that respond to consumer demand for healthier options while strengthening brand competitiveness. By securing exclusive rights to advanced formulations and bioengineered ingredients, companies seek to expand market share, drive differentiation, and increase profitability.

Conclusion

From tech-enhanced fashion to zero-waste food production, technology is reshaping innovation and competition in the consumer goods sector. As technology-based competitiveness becomes increasingly important, companies must make deliberate, business-driven decisions about how they approach patents.

For “Rapid Expanders”, challenges include to avoid over-filing or filing in areas that don’t add value, and to ensure patents are actively used to support business goals – not left as inactive cost items on the P&L.
“Consistent Innovators” must regularly recalibrate their efforts to stay aligned with evolving strategic priorities and market dynamics. Like the Expanders, they must also ensure that their patent portfolios are actively leveraged, rather than quietly accumulating as overhead cost.
“Sporadic Filers” may need to reassess whether an opportunistic approach is sufficient in the long term. If investment increases, systematically selecting the right areas is key to making patents count and avoiding unnecessary cost.
“Dormant Players” must consider whether they can afford the risk of having no patent position in a tech-driven market, and whether they have the innovation capabilities needed to start building meaningful portfolios.

Independent of profile, companies need a business-driven and proactive approach to patents, both to stay ahead and avoid being caught off guard. This means being able to clearly answer:

Why are we (or aren’t we) investing in patents? What is the intended impact on revenue, cost, and risk?
Are we organised for proactive and impactful IP management? Do we have the right stakeholder interfaces?
Do we have the capabilities and skillsets needed to execute effectively?

Without clear answers to these questions, patent departments in consumer goods companies may struggle to compellingly articulate the value of patents and their contribution to technology-based competitiveness. This increases the likelihood of being seen primarily as cost centres, making it difficult to secure appropriate investment. Ultimately, companies may face misalignment between their business and technology ambitions, falling short in protecting and capitalising on them.