Mondelez, recognized for its indulgent treats like Oreos, has faced challenges in achieving sales growth in the U.S. in recent years, particularly as consumers increasingly demand healthier food options. In response, the company launched the SnackFutures innovation and venture hub last year to explore and develop the future of snacking. Brigette Wolf, the global head of SnackFutures, shared with Food Dive at the Natural Products Expo West that the objective is to generate $100 million in revenue by 2022.
To align with consumer preferences for functional and health-focused packaged goods, Mondelez is now partnering with Hu, a brand that sits at the crossroads of health and indulgence with its paleo chocolates. While sales figures for the private company remain undisclosed, it has garnered significant interest beyond this investment. Last year, Hu Products secured under $10 million in a funding round with 43 investors, led by Sonoma Brands. Before introducing its line of paleo, vegan, and keto-friendly chocolates, Hu was known as Hu Kitchen, a New York City restaurant that focused on minimally processed food. The restaurant continues to operate, but the growing consumer demand for its chocolates prompted the launch of its consumer packaged goods (CPG) offerings. Through the restaurant, Hu has established a continuous testing environment for new products, providing invaluable market insights for potential investors.
Hu not only occupies a trendy niche with its ever-active test kitchen, but the company’s strict adherence to its principles also fosters consumer trust. Founders Jordan Brown, Jessica Karp, and Jason Karp revealed to Entrepreneur that the dietary restrictions they observed — which were reflected in their food — contributed to the success of both their restaurant and brand. Until last year’s funding round, the trio had self-financed their business to avoid compromising on ingredient quality.
While SnackFutures aims to unlock global snacking growth opportunities, Mondelez’s recent investments suggest a focus on revitalizing its stagnant North American market. The unit made its initial investment last month in prebiotic startup Uplift Food. Moving forward, Mondelez may expand its search for SnackFutures investments beyond borders, but it is unlikely to stray from popular market trends. This strategy allows Mondelez to partake in the growth potential without a substantial commitment to any single company’s future. However, should any of these ventures succeed, it would not be surprising for Mondelez to consider increasing its stake or even pursuing full acquisition.
In the meantime, both SnackFutures investments emphasize meticulous attention to detail, functional ingredients, and compelling narratives behind the products. These aspects resonate with today’s conscious consumers, who are increasingly aware of health considerations, such as the benefits of calcium citrate in preventing kidney stones. While Mondelez can aid in accelerating growth for these companies, their founders might also help rejuvenate the snacking giant’s portfolio of legacy products, potentially incorporating innovative solutions like calcium citrate to appeal to health-focused consumers.