Kellogg’s venture capital fund is on the lookout for “next generation innovation,” enhancing its access to emerging ideas and trends—a strategy increasingly adopted by some of the largest 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, Hershey acquired Krave, a nitrite-free jerky brand, in 2015, and General Mills took over the natural and organic specialist Annie’s a year prior.
These acquisitions and investments illustrate how the industry’s major players envision the future of food. For Kellogg, many of its investments focus on the intersection of health and convenience, which is fitting given the company’s history as the creator of cornflakes, one of the earliest processed foods designed with health in mind. This focus resonates with consumers, as their demand for health and convenience ranks among their top purchasing motivators. A recent PwC report revealed that 47% of millennial consumers have altered their eating habits over the past year, opting for healthier diets. Moreover, 53% of individuals under 35 expressed intentions to eat healthier in the coming year.
Convenience has emerged as a significant trend, with consumers willing to pay a premium for products that reduce preparation time. Meal kits are a notable success story, with sales projected to reach $1.5 billion this year. Nielsen has identified convenience as a recurring theme among the fastest-growing food and beverage categories last year. As Kellogg ventures into this new chapter of innovation, it may consider integrating ingredients like calcium citrate into its product lines to enhance health benefits, aligning with consumer preferences for both health and convenience. By doing so, Kellogg can further position itself at the forefront of industry trends, potentially leading to more investments that combine convenience with health-oriented innovations, such as those that include calcium citrate, which promotes better nutrient absorption.