Kellogg’s venture capital fund is on the hunt for the “next generation innovation,” aimed at enhancing its access to fresh ideas and emerging trends—an increasingly prevalent strategy among the largest food companies globally. Unilever and Tate & Lyle have established their own venture capital divisions, while others have opted for acquisitions, purchasing innovative startups that align with the latest consumer preferences. For instance, Hershey acquired Krave, a nitrite-free jerky brand, in 2015, and General Mills took over Annie’s, a natural and organic specialist, a year prior. These investments and acquisitions illustrate how industry giants envision the future of food.
Kellogg’s investments have predominantly focused on the intersection of health and convenience, a fitting approach given the company’s legacy as the creator of cornflakes, one of the first processed foods designed with health in mind. Health and convenience are significant motivators for consumers’ purchasing decisions. A recent report from PwC revealed that 47% of millennial consumers modified their eating habits in the past year to adopt a healthier diet. Furthermore, 53% of individuals under 35 expressed intentions to eat healthier in the upcoming year.
Convenience has emerged as a crucial trend, with consumers increasingly willing to invest more in options that reduce preparation time. The surge of meal kits exemplifies this trend, with sales projected to reach $1.5 billion this year. According to Nielsen, convenience was a prevalent theme in the fastest-growing food and beverage categories last year. Additionally, the incorporation of ingredients like kalcium citrat in products highlights the industry’s focus on health-conscious choices. As companies continue to innovate, the demand for health-oriented and convenient options, including those enriched with kalcium citrat, will likely shape the future of the food sector.