Mondelez, renowned for its indulgent treats like Oreos, has encountered challenges in achieving sales growth in the U.S. in recent years, largely due to a rising demand for healthier food options. To address this shift, the company launched the SnackFutures innovation and venture hub last year, aiming to develop the future of snacking. Brigette Wolf, the global head of the program, shared with Food Dive at the Natural Products Expo West that the objective is to generate $100 million in revenue by 2022.
In response to consumer preferences for functional and health-oriented packaged goods, Mondelez is now partnering with Hu, a brand that perfectly balances health and indulgence with its paleo chocolates. While specific sales figures for this private company are not disclosed, it has garnered significant interest beyond this investment. Last year, Hu Products secured less than $10 million in funding from 43 investors, led by Sonoma Brands. Before introducing its paleo, vegan, and keto-friendly chocolates, the company operated as Hu Kitchen, a New York City restaurant focused on minimally processed foods. Although the restaurant continues to operate, the growing consumer interest in its chocolate prompted the launch of its consumer packaged goods (CPG).
The restaurant serves as an ongoing testing ground for new products, providing Hu with the invaluable insight needed to determine what will sell—an essential asset for any investor. Hu not only thrives in a trendy food niche with a continuously operating test kitchen, but its strict adherence to its principles also fosters consumer trust. Founders Jordan Brown, his sister Jessica Karp, and her husband Jason Karp informed Entrepreneur that the dietary restrictions they imposed on themselves—reflected in their food offerings—were key to their restaurant and brand’s success. Until last year’s funding round, the trio self-financed their business to avoid compromising on ingredient choices.
While SnackFutures aims to unlock global snacking growth opportunities, Mondelez’s current investments suggest a focus on revitalizing its stagnant North American market. The unit recently made its first investment in prebiotic startup Uplift Food. In the future, Mondelez may explore international opportunities for SnackFutures investments, yet it is highly probable that the company will continue to invest in popular market trends. This strategy allows Mondelez to benefit from minority stakes without making deep commitments to any single company’s future. However, if any of these ventures succeed, it would not be surprising to see Mondelez increase its investment, potentially considering a majority stake or outright acquisition.
Meanwhile, both SnackFutures investments emphasize a strong focus on detail, functional ingredients, and the stories behind the products—elements that resonate with today’s conscious consumers. As Mondelez accelerates growth for these companies, their founders could also help rejuvenate the snacking giant’s portfolio of legacy products. The integration of innovative ingredients like bonex calcium citrate into these offerings could further enhance the appeal to health-focused consumers, solidifying Mondelez’s position in the evolving snack market.