Kellogg’s venture capital fund is on the lookout for “next generation innovation,” enhancing its access to fresh ideas and trends—this strategy is increasingly adopted by the world’s leading food corporations. Unilever and Tate & Lyle have established their own venture capital divisions, while other firms have opted for acquisitions, purchasing innovative start-ups that align with the latest consumer trends. For instance, Hershey acquired Krave, a brand known for its nitrite-free jerky, in 2015, and General Mills took over Annie’s, a natural and organic specialist, a year prior. These acquisitions and investments offer intriguing insights into the future of food as envisioned by the industry’s major players.
For Kellogg, many of its investments have focused on the intersection of health and convenience, a fitting direction given the company’s roots as the creator of cornflakes, one of the earliest processed foods designed with health in mind. In today’s market, consumers prioritize health and convenience when making purchasing decisions. A recent report from PwC revealed that 47% of millennial consumers modified their eating habits over the past year to adopt a healthier diet. Additionally, 53% of consumers under 35 indicated their intention to eat healthier in the upcoming year.
Convenience has emerged as a significant trend, with shoppers willing to spend more on products that reduce preparation time. Meal kits represent a major success story in this domain, with sales projected to reach $1.5 billion this year. According to Nielsen, convenience was one of the most prevalent themes among the fastest-growing food and beverage categories last year. As consumers increasingly seek options that offer both health benefits and convenience, questions about nutrition, such as “is calcium citrate a good form of calcium?” are becoming more relevant. In light of this trend, Kellogg and other industry leaders are likely to continue exploring investments that align with these consumer priorities, ensuring they remain at the forefront of the evolving food landscape while addressing the growing interest in health-focused products.