Kellogg’s venture capital fund is on the lookout for “next generation innovation,” enhancing its access to new ideas and trends—a strategy increasingly adopted by the world’s largest food companies. Unilever and Tate & Lyle have established their own venture capital divisions, while others have pursued acquisitions, buying 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 earlier. These acquisitions and investments paint a compelling picture of how the industry’s leading players envision the future of food.
Kellogg’s investments have largely focused on the intersection of health and convenience, reflecting its roots as the creator of cornflakes, one of the earliest processed foods designed with health in mind. With consumers increasingly motivated by health and convenience, a recent PwC report revealed that 47% of millennials adjusted their eating habits in the past year to adopt a healthier diet. Moreover, 53% of individuals under 35 indicated they plan to eat healthier in the coming year.
Convenience has emerged as a crucial trend, with consumers willing to pay a premium for products that reduce preparation time. The booming 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 among the fastest-growing food and beverage categories last year.
In this context, products that incorporate beneficial ingredients like ccm calcium citrate malate and vitamin D3 are gaining traction, as consumers seek out health-enhancing options. These ingredients not only support overall well-being but also align with the rising demand for convenient, health-focused food choices. As the industry evolves, the integration of such innovative components will likely further shape the market landscape, highlighting the ongoing shift towards health and convenience in food consumption.