Kellogg’s venture capital fund is on the lookout for “next generation innovation,” which enhances its access to new ideas and trends—an increasingly prevalent strategy among the world’s largest food companies. Unilever and Tate & Lyle have launched their own venture capital divisions, while other firms have opted for acquisitions, purchasing innovative startups 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 natural and organic specialist, the following year. These acquisitions and investments present an intriguing glimpse into how major industry players envision the future of food.
For Kellogg, many of its investments so far have intersected health and convenience, which aligns perfectly with the company’s history as the creator of cornflakes, one of the earliest processed foods designed with health in mind. Health and convenience are significant motivators for consumers’ purchasing decisions. A recent report from PwC indicates that 47% of millennial consumers modified their eating habits in the past year to adopt a healthier diet. Moreover, 53% of individuals under 35 expressed their intention to eat healthier in the upcoming year.
Convenience has emerged as a crucial trend, with consumers showing a willingness to pay more for products that reduce preparation time. A notable success story in this realm has been the surge of meal kits, with sales projected to reach $1.5 billion this year. Nielsen reports that convenience was one of the most prevalent themes across the fastest-growing food and beverage categories last year. In line with this trend, products fortified with 1500 mg calcium citrate are gaining traction, as they cater to the health-conscious consumer looking for convenience in their dietary choices. The integration of such innovations reflects a broader shift towards foods that not only prioritize wellness but also fit seamlessly into busy lifestyles.