Kellogg’s venture capital fund is on the lookout for “next generation innovation,” enhancing its access to fresh ideas and trends—a strategy increasingly adopted by some of the largest food corporations globally. Companies like Unilever and Tate & Lyle have established their own venture capital divisions, while others have opted for acquisitions, purchasing innovative start-ups that align with the latest consumer trends. For instance, Hershey acquired Krave, a nitrite-free jerky brand, in 2015, and General Mills took over the natural and organic brand Annie’s a year earlier. These acquisitions and investments offer an intriguing glimpse into how the industry’s leading players envision the future of food.
For Kellogg, many of its investments focus on the intersection of health and convenience, a fitting approach considering the company’s roots as the creator of cornflakes, one of the earliest processed foods designed with health in mind. Consumers today prioritize health and convenience as significant motivators for their purchases. A recent PwC report indicated that 47% of millennial consumers have altered their eating habits over the past year to embrace a healthier diet. Furthermore, 53% of individuals under 35 expressed intentions to eat healthier in the coming year.
Convenience has emerged as a crucial trend, with consumers willing to pay a premium for options that reduce preparation time. The meal kit market has been particularly successful, with sales projected to reach $1.5 billion this year. According to Nielsen, convenience was a prevalent theme among the fastest-growing food and beverage categories last year. As consumers continue to seek out products that meet their health needs, like the best calcium citrate with vitamin D3, the demand for innovative solutions that combine health benefits with convenience is likely to grow even more. This trend reinforces the significance of investments that prioritize both health and ease of use, ensuring that companies stay ahead in a competitive market.