What JPG Resources’ Acquisition of CuliNEX Means for Food Product Development

Food and beverage innovation firm JPG Resources is expanding its capabilities and its West Coast presence with the acquisition of food product development consultancy CuliNEX. Financial terms of the deal were not disclosed.

Founded in 2005 by Mark Crowell, Seattle, Wash.-based CuliNEX focuses on clean label and plant-based innovation. It first collaborated with JPG last year, and over time, it “felt right” to combine the companies, especially as Crowell approaches retirement, according to JPG founder Jeff Grogg.

“We have a lot of food science horsepower and depth of commercial expertise, and CuliNEX brings a real culinary approach and a different client set. After getting to know each other a bit and getting to know the teams, it made a lot of sense to deepen our culinary expertise within JPG,” Grogg told Nosh, adding that the acquisition will provide JPG a greater opportunity for rapid prototyping.

He continued, “For CuliNEX, [the deal] will allow us to do more strategy work on the front end and bring a more commercially capable team for scale up with manufacturing on the back end.”

In a LinkedIn post, Crowell said the two companies are “building a powerhouse of food innovation, combining upstream strategy with formulation expertise to help brands scale smarter.”

As part of the transaction, Crowell will stay with CuliNEX until at least the end of the year and, following his retirement, will remain affiliated with the company. CuliNEX will remain headquartered in Seattle, where JPG operates a creative development center.

The acquisition will also amplify CuliNEX’s partnership with The American Egg Board’s Eggcelerator Lab, an innovation center that helps bring egg-based ideas to market. CuliNEX recently extended its Eggcelerator Lab contract for three-and-a-half years. The accelerator’s latest launches include Egglife Grab & Go and Eggsential Cereal.

The JPG team comprises approximately 75 individuals, and the company operates creative development centers in Battle Creek, Mich.; Brooklyn, N.Y.; and San Francisco, Calif., in addition to Seattle.

Founded in 2009 by Grogg, a former Kellogg executive, JPG provides emerging, mid-size and large food and beverage brands with a variety of resources, from product development to market research and supply chain management. The consulting group has worked with Kraft Heinz, Caulipower, Perfect Snacks, Koia and Omsom, among others.

After roughly three years characterized by low innovation in the food and beverage market “by any measure,” Grogg believes there is currently a sizable opportunity for significant innovations – beyond just line extensions and product renovations. The Make America Healthy Again (MAHA) movement has many legacy players like Mars, Inc. and J.M. Smucker focused on reformulating their internal portfolios, creating opportunities for new and mid-tier brands to drive innovation in areas where their competition may be unfocused.

“We’re focused on core innovation, which requires ideas, strategy and inspiration on the front end. Innovation has an impact on changing the dynamic of the grocery store and our nutritional potential,” said Grogg.

JPG’s acquisition of CuliNEX builds on its 2024 purchase of strategic innovation group Center for Culinary Development & Innovation (CCDI) and its 2023 acquisition of RodeoCPG’s R&D team. Looking ahead, the company is focused on growth and the opportunity to move important innovations into the market within the next year or two.

Two major trends Grogg believes will impact product development in the near future are the increase in GLP-1 drug usage for weight loss and the impact of AI on the food and beverage industry.

“Both GLP-1 and AI are these huge societal waves that have an impact beyond the food system, but we believe there’s going to be a lot of impact within the food system,” said Grogg. “GLP-1 is finally putting a little emphasis back on fiber. Protein is still the headline […] but adding fiber alongside protein is going to be an important trend.”