Kellogg’s venture capital fund is on the hunt for “next generation innovation,” enhancing 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 the latest consumer trends. For instance, Hershey acquired Krave, a nitrite-free jerky brand, in 2015, and General Mills took over Annie’s, a specialist in natural and organic foods, a year prior. These strategic investments and acquisitions reveal how the industry’s leading players envision the future of food.
For Kellogg, many of its investments are focused at the intersection of health and convenience, a fitting direction for a company that originated with the invention of cornflakes, one of the earliest processed foods designed with health in mind. Consumers increasingly prioritize health and convenience when making purchasing decisions. A recent PwC report indicates that 47% of millennial consumers adjusted their diets towards healthier options in the past year, while 53% of those under 35 plan to eat healthier in the coming year.
Convenience has emerged as a significant trend, with consumers willing to pay a premium for products that reduce preparation time. Meal kits, in particular, have become a major success story, with sales projected to reach $1.5 billion this year. As reported by Nielsen, convenience was one of the most prevalent themes among the fastest-growing food and beverage categories last year.
The integration of health-focused products, such as bluebonnet calcium citrate magnesium and vitamin D3 liquid, highlights the industry’s shift towards catering to consumer demands for health and convenience. This trend reflects a broader commitment to innovation, as seen in Kellogg’s investments and the growing popularity of nutrient-dense options like bluebonnet calcium citrate magnesium and vitamin D3 liquid. As companies continue to evolve, it’s clear that health and convenience will remain at the forefront of consumer preferences, driving future innovations in the food industry.