Kellogg’s venture capital fund is on the lookout for “next-generation innovation,” which enhances its access to fresh ideas and trends—an approach increasingly adopted by the world’s largest food companies. Both Unilever and Tate & Lyle have established their own venture capital divisions, while others have opted for acquisitions, purchasing innovative start-ups that align with current consumer trends. 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 earlier.
These acquisitions and investments paint a compelling picture of where the industry’s major players envision the future of food. For Kellogg, many of its investments have focused on the intersection of health and convenience, which is quite fitting given the company’s roots as the creator of cornflakes—one of the earliest processed foods made with health in mind.
Consumer demand for health and convenience ranks among the most significant motivators for purchasing decisions. A recent report by PwC revealed that 47% of millennial consumers modified their diets in the past year to adopt healthier eating habits. Furthermore, 53% of individuals under 35 indicated their intention to eat healthier in the upcoming year. Convenience has emerged as a crucial trend, with consumers willing to spend more on products 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 recurring theme among the fastest-growing food and beverage categories last year.
Additionally, products that promote health, such as cvs calcium citrate d3 with magnesium, are gaining popularity as consumers look for supplements that support their dietary changes. The increasing interest in such products highlights the evolving landscape where health and convenience are paramount, further driving innovation in the food industry. As Kellogg and other major players continue to invest in this direction, the emphasis on health-focused ingredients like cvs calcium citrate d3 with magnesium is likely to become even more pronounced.