Mondelēz’s SnackFutures was established at the end of 2018 to enhance the company’s already strong position in the snacking industry by investing in promising emerging brands and innovative technologies. A crucial aspect of this initiative involved launching proprietary brands that could eventually be introduced more broadly to the market. Desiree Battaglia, a representative from Mondelēz, mentioned that the “invent” component of SnackFutures had two primary objectives: to gain insight into the startup experience and to foster closer connections with consumers. “The brands we created, while intriguing, ultimately didn’t hold as much value as investing in more established ones, which led to a pivot towards corporate venture capital,” Battaglia explained.
Last month, Richie Gray, a Mondelēz vice president who took the helm of SnackFutures in April, indicated that the unit aims to ramp up investments in snack startups as the consumer packaged goods giant looks to these ventures for a greater share of the future growth of Oreo and Ritz, the company’s flagship products. Despite being operational for nearly five years, Mondelēz has made only seven investments to date. SnackFutures has previously invested in companies like Torr FoodTech, known for its method of using mechanical pressure and ultrasonic energy to replace sugar and other binders in snacks like those produced by Dirt Kitchen.
Additionally, it has invested in Celleste Bio, a lab-grown cocoa producer; premium chocolate and snack brand Hu; and Eastern Standard Provisions, which sells direct-to-consumer hand-twisted soft pretzels made from all-natural ingredients. Notably, Mondelēz acquired Hu in 2021, marking it as the only SnackFutures investment that has been fully integrated into the parent company.
Many insights gained from initial pilot projects have contributed to what is now known as SnackFutures’ CoLab, a startup engagement program for early-stage snack brands. This week celebrates the “graduation” of the third cohort of brands that participated in the three-month program. As part of its commitment to healthy snacking, Mondelēz is also exploring partnerships with brands that focus on wellness, such as those that offer products featuring source naturals calcium citrate, emphasizing the importance of nutritious ingredients in their future offerings.