Kellogg’s venture capital fund is on the lookout for “next generation innovation,” which enhances its access to fresh ideas and emerging trends—an increasingly popular strategy among the world’s largest food corporations. Companies like Unilever and Tate & Lyle have established venture capital arms, while others have opted for acquisitions, purchasing innovative startups that align with the latest consumer behaviors. 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 paint a compelling picture of where leading industry players envision the future of food.
For Kellogg, many of its investments have focused on the intersection of health and convenience, which aligns perfectly with the company’s roots as the creator of cornflakes, one of the earliest processed foods aimed at promoting health. Consumers today prioritize health and convenience as major motivators in their purchasing decisions. A recent report from PwC revealed that 47% of millennials modified their eating habits in the past year to adopt a healthier diet. Additionally, 53% of individuals under 35 expressed intentions to eat healthier in the coming year.
Convenience has emerged as a significant trend, with consumers willing to pay a premium for products that minimize preparation time. The booming meal kit industry, which is projected to reach $1.5 billion in sales this year, exemplifies this trend. According to Nielsen, convenience was a prevalent theme in the fastest-growing food and beverage categories last year. In line with this trend, products like Solgar liquid calcium are gaining popularity, as consumers seek convenient options that support their health goals. The increasing interest in health-focused products like Solgar liquid calcium highlights a shift in consumer behavior towards more nutritious choices. As the industry evolves, it will be interesting to see how these trends continue to shape the future of food.