This case uses Sigma Alimentos, S.A. de C.V. (Sigma), the Mexican food multinational corporation, as a compelling example of large food companies’ development of in-house venture capital (VC) investment arms. Beginning in the mid-2010s, major food players from General Mills, Inc., to Tyson Foods, Inc., began investing in early-stage companies with the goal of benefiting both themselves and the early-stage companies financially, but also of introducing agility and innovation to the multinationals. Food distribution in Mexico was complex because the country served as a major logistics hub for the world, but Mexican households were just as likely to purchase groceries from a small, independent local corner store as they were from a large supermarket—so the system was large but inefficient.

The case opens in February 2025, with the protagonist, Roberto Gonzalez, debating how to approach the Tastech by Sigma (Tastech) innovation competition. Gonzalez is an entrepreneur who already sold one food start-up and is interested in bridging the gap between the corner stores and multinationals’ distribution system in Mexico. He must determine the best timing, which products to pitch, and whether Tastech is in fact the correct venturing opportunity for him. This case is appropriate for full-time, part-time, and executive MBA students. It can be taught in person or in a virtual classroom, ideally over approximately 80 minutes of class time. The teaching note provides ideas for a homework assignment or an in-class activity to advance student learning.