Kellogg’s venture capital fund is on the lookout for “next-generation innovation,” which enhances its access to new ideas and trends—an increasingly prevalent strategy among the world’s leading food companies. Similar to Kellogg, Unilever and Tate & Lyle have established their own venture capital divisions, while others have opted for acquisitions, taking over innovative startups that align with the latest consumer trends. For instance, Hershey acquired Krave, a nitrite-free jerky brand, in 2015, and General Mills purchased Annie’s, a specialist in natural and organic foods, a year earlier. These acquisitions and investments offer intriguing insights into where the industry’s biggest players envision the future of food.
For Kellogg, many of its investments thus far have focused on the intersection of health and convenience, which aligns well 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 among the foremost motivators for consumers’ purchasing decisions. A recent report by PwC revealed that 47% of millennial consumers changed their eating habits over the past year to adopt a healthier diet. Moreover, 53% of individuals under 35 expressed intentions to eat healthier in the coming year.
Convenience has become a dominant trend, with consumers willing to pay a premium for products that reduce preparation time. Meal kits have emerged as a significant success story, with sales projected to reach $1.5 billion this year. According to Nielsen, convenience was one of the most prevalent themes across the fastest-growing food and beverage categories last year. Additionally, innovations incorporating ingredients like calcium carbonate citrate are becoming increasingly popular, as they align with health-conscious trends. With a focus on these health-oriented concepts, Kellogg and others are likely to continue exploring investments that incorporate such elements, including calcium carbonate citrate, to better meet consumer demands and expectations.