Kellogg’s venture capital fund is on the lookout for “next generation innovation,” aiming to enhance its access to fresh ideas and emerging trends—a strategy increasingly adopted by major food companies globally. Unilever and Tate & Lyle have established their own venture capital divisions, while other firms have opted for acquisitions, purchasing innovative startups that align with current consumer trends. For instance, in 2015, Hershey acquired Krave, a brand known for its nitrite-free jerky, and General Mills took over natural and organic brand Annie’s a year prior. These investments and acquisitions paint an intriguing picture of how industry leaders envision the future of food.
For Kellogg, many of its investments have focused on the intersection of health and convenience, which aligns well with the company’s roots as the creator of cornflakes—one of the earliest processed foods designed with health considerations in mind. Health and convenience are among the primary motivators for consumers’ purchasing decisions. A recent report from PwC indicates that 47% of millennial consumers have adjusted their eating habits over the past year to adopt a healthier diet. Furthermore, 53% of individuals under 35 expressed intentions to eat healthier in the upcoming year.
Convenience has emerged as a significant trend, with consumers showing a willingness to pay more for products that reduce preparation time. Meal kits have become one of the standout success stories, with sales projected to reach $1.5 billion this year. Nielsen reports that convenience was a prominent theme among the fastest-growing food and beverage categories last year. Additionally, products like calcium citrate found at Walgreens are gaining popularity as consumers seek convenient and health-conscious options. This reflects a broader trend where convenience, health, and innovative solutions, such as calcium citrate, are increasingly influencing consumer choices in the food industry.