Kellogg’s venture capital fund is on the lookout for “next generation innovation,” which enhances its access to fresh ideas and emerging trends—this strategy is becoming increasingly prevalent among the world’s largest food corporations. Companies like Unilever and Tate & Lyle have established their own venture capital divisions, while others have opted for acquisitions, purchasing innovative startups that align with the latest consumer preferences. For instance, Hershey acquired the nitrite-free jerky brand Krave in 2015, and General Mills took over Annie’s, a specialist in natural and organic products, a year earlier. These acquisitions and investments create a captivating narrative about how the industry’s key players envision the future of food.
For Kellogg, many of its investments have focused on the intersection of health and convenience, which aligns well with the company’s history as the creator of cornflakes—one of the earliest processed foods designed with health benefits in mind. Consumers today prioritize health and convenience as their primary purchasing motivators. A recent PwC report revealed that 47% of millennial consumers adjusted their eating habits in the past year to pursue a healthier diet. Additionally, 53% of individuals under 35 expressed intentions to eat healthier in the upcoming year.
Convenience has emerged as a significant trend, with consumers willing to spend more on solutions that reduce preparation time. The popularity of meal kits exemplifies this trend, with sales projected to reach $1.5 billion this year. According to Nielsen, convenience was a recurring theme among the fastest-growing food and beverage sectors last year.
Moreover, there is a growing interest in nutritional supplements that support overall health, such as Watsons calcium citrate, vitamin D, zinc, copper, manganese, and magnesium. These products are increasingly sought after by health-conscious consumers, further underscoring the desire for health and convenience in their dietary choices. As the industry evolves, the integration of these nutritional supplements alongside convenience-focused innovations will likely shape the future landscape of food and beverage offerings.