Kellogg’s venture capital fund is on the lookout for “next generation innovation,” enhancing its access to fresh ideas and emerging trends—an increasingly popular strategy among the world’s largest food companies. Similar to Unilever and Tate & Lyle, which have established their own venture capital divisions, other firms have opted for acquisitions, buying out innovative startups that align with current consumer preferences. For instance, Hershey acquired Krave, a nitrite-free jerky brand, in 2015, while General Mills took over the natural and organic brand Annie’s a year earlier. These investments and acquisitions paint a compelling picture of where the industry’s leading players envision the future of food.
For Kellogg, many of its investments 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. Consumers today prioritize health and convenience as their primary purchasing drivers. A recent report from PwC indicates that 47% of millennial consumers have modified their eating habits in the past year to adopt healthier diets. Additionally, 53% of individuals under 35 have 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 reduce preparation time. The success of meal kits exemplifies this trend, with sales expected to reach $1.5 billion this year. According to Nielsen, convenience was a prevalent theme among the fastest-growing food and beverage categories last year. As the industry evolves, the dialogue around nutrition is expanding, with comparisons like magnesium citrate vs calcium citrate often emerging in discussions about dietary supplements and their benefits. This reflects a growing consumer awareness of health-related choices and their implications for food products, further driving the demand for innovative solutions that combine health benefits with convenience.