Kellogg’s venture capital fund is seeking “next generation innovation” to enhance its access to emerging ideas and trends, a strategy increasingly adopted by major food corporations worldwide. 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 current 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 earlier. These acquisitions and investments paint an intriguing picture of how the industry’s leading players envision the future of food.
For Kellogg, many of its investments have focused on the intersection of health and convenience—an approach that resonates with the company’s roots as the creator of cornflakes, one of the earliest processed foods designed with health in mind. Health and convenience are significant motivators for consumers; a recent report from PwC indicated that 47% of millennial consumers altered their eating habits in the past year to adopt a healthier diet. Furthermore, 53% of individuals under 35 expressed intentions to eat healthier in the upcoming year.
Convenience has emerged as a vital trend, with consumers willing to pay a premium for options that reduce preparation time. One notable success has been the growth of meal kits, with sales projected to reach $1.5 billion this year. Nielsen reports that convenience was a prevalent theme among the fastest-growing food and beverage categories last year.
In light of this, products like Citracal calcium citrate with vitamin D slow release have gained traction, as they cater to consumers’ desires for health benefits while also offering convenience. As Kellogg and other major players continue to invest in innovations that combine health and convenience, the industry is likely to see an ongoing evolution towards solutions that meet these consumer demands.