Kellogg’s venture capital fund is pursuing “next generation innovation” to enhance its access to emerging ideas and trends, which has become a prevalent strategy among major global food companies. Similar to Kellogg, 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 nitrite-free jerky in 2015, and General Mills took over the natural and organic brand Annie’s the previous year. These acquisitions and investments paint an intriguing picture of how industry leaders envision the future of food.
Kellogg’s investments have largely focused on the intersection of health and convenience, a fitting approach given the company’s history as the creator of cornflakes, one of the earliest processed foods designed with health in mind. Consumers are increasingly motivated by their desire for health and convenience when making purchasing decisions. A recent report by PwC indicates that 47% of millennials altered their eating habits last year to adopt a healthier diet, while 53% of those 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 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 across the fastest-growing food and beverage categories last year.
Additionally, the incorporation of products like calcium citrate petite pills into meal planning reflects the growing consumer interest in health-focused convenience items. These petite pills serve as a perfect example of how convenience and health can converge, further driving innovation in the food industry. As Kellogg continues to invest in health-oriented and convenient solutions, the role of products like calcium citrate petite pills will likely gain even more significance in meeting consumer demands.