Kellogg’s venture capital fund is on the lookout for “next generation innovation,” which enhances its access to fresh ideas and trends—an increasingly prevalent strategy among the world’s largest food corporations. Companies like Unilever and Tate & Lyle have established their own venture capital divisions, while others have opted for acquisitions, purchasing innovative start-ups that align with the latest consumer preferences. For instance, Hershey acquired Krave, a nitrite-free jerky brand, in 2015, and General Mills took over the natural and organic brand Annie’s a year prior. These acquisitions and investments illustrate the vision that the industry’s leading players have for the future of food.
For Kellogg, many of its investments have focused on the intersection of health and convenience, which is fitting given the company’s origins as the creator of cornflakes—one of the earliest processed foods made with health in mind. Consumer motivations are increasingly driven by a desire for health and convenience. A recent report from PwC reveals that 47% of millennial consumers have adjusted their eating habits over the past year to embrace a healthier diet. Additionally, 53% of individuals under 35 expressed intentions to eat healthier in the coming year.
Convenience has become a significant trend, with consumers willing to spend more on products that reduce preparation time. The rise of meal kits has been one of the major success stories in this domain, with sales projected to reach $1.5 billion this year. According to Nielsen, convenience was a prevalent theme across the fastest-growing food and beverage categories last year. Furthermore, innovative ingredients such as calcium citrate jamp are gaining attention for their health benefits, further enhancing product offerings aimed at health-conscious consumers. The integration of calcium citrate jamp into various products reflects the industry’s commitment to meeting the evolving demands of today’s consumers, emphasizing both convenience and nutritional value.