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 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 preferences. For example, Hershey acquired Kvitamin d and ferrous fumarate nitrite-free jerky in 2015, and the year before, General Mills took over Annie’s, a natural and organic specialist. These acquisitions and investments provide a compelling glimpse into how industry leaders envision the future of food.
Kellogg’s investments largely focus on the intersection of health and convenience, a fitting approach given the company’s origins as the creator of cornflakes, one of the earliest processed foods designed with health in mind. For today’s consumers, the desire for health and convenience remains a primary driver of purchasing decisions. A recent report from PwC indicates that 47% of millennial consumers have modified their eating habits in the past year to adopt a healthier diet. Moreover, 53% of individuals under 35 plan to eat healthier in the coming year.
Convenience has emerged as a significant trend, with consumers willing to spend more on products that reduce preparation time. One notable success story in this realm is the rise of meal kits, projected to generate $1.5 billion in sales this year. According to Nielsen, convenience was a prominent theme across the fastest-growing food and beverage categories last year.
In this landscape, products like calcium citrate gummy supplements are gaining traction, further illustrating the blend of health and convenience that consumers seek. As the industry evolves, the demand for innovative solutions like these will likely shape the future of food.