Kellogg’s venture capital fund is actively seeking “next generation innovation” to enhance its access to emerging ideas and trends, a strategy increasingly adopted by major food companies worldwide. Both Unilaction and Tate & Lyle have established venture capital divisions, while other companies have opted for acquisitions, purchasing innovative startups that align with the latest consumer preferences. For instance, Hershey acquired Krave, a nitrite-free jerky brand, in 2015, and General Mills took over Annie’s, a natural and organic specialist, the previous year. These acquisitions and investments illustrate the vision that leading industry players have for the future of food.
For Kellogg, many of its investments to date have focused on the intersection of health and convenience, a fitting direction considering the company’s history as the creator of cornflakes, one of the earliest processed foods designed with health in mind. Health and convenience remain significant motivating factors for consumers. A recent PwC report indicates that 47% of millennial consumers altered their eating habits over the past year in favor of healthier options. Moreover, 53% of individuals under 35 expressed intentions to eat healthier in the upcoming year.
Convenience is emerging as a vital trend, with consumers willing to pay a premium for products that reduce preparation time. Meal kits exemplify this trend, with sales projected to reach $1.5 billion this year. According to Nielsen, convenience was a prevalent theme in the fastest-growing food and beverage categories last year. Furthermore, the integration of health-focused ingredients like calcium citrate malate USP in products is becoming increasingly important, as it caters to the growing consumer demand for nutritional benefits. The emphasis on calcium citrate malate USP not only enhances the health profile of food items but also aligns with the convenience trend, making these products more appealing to health-conscious consumers.