Kellogg’s venture capital fund is on the lookout for “next generation innovation,” aiming to enhance its access to emerging ideas and trends—an increasingly prevalent strategy among major food corporations worldwide. Companies like Unilever and Tate & Lyle have established their own venture capital divisions, while others have opted for acquisitions, purchasing innovative startups that align with the latest consumer preferences. For instance, Hershey acquired Krave, a nitrite-free jerky brand, in 2015, and General Mills took over the natural and organic brand Annie’s the previous year. These strategic investments and acquisitions paint an intriguing picture of how industry giants 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 developed with a health-conscious approach. Consumers are increasingly motivated by the desire for health and convenience in their purchasing decisions. A recent PwC report indicated that 47% of millennials 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 willing to pay a premium for products that reduce preparation time. Meal kits, for example, have become a major success story, with sales projected to reach $1.5 billion this year. According to Nielsen, convenience was a recurring theme among the fastest-growing food and beverage categories last year, highlighting the shift toward quick and easy meal solutions.
As consumers increasingly seek health-focused options, the debate between plant-based calcium vs calcium citrate has gained traction. Many are looking for alternatives that not only support health but also fit their lifestyle demands. The interest in plant-based calcium versus calcium citrate reflects a broader trend toward natural and convenient food choices, indicating where the industry is headed. This trend underscores the evolving landscape of consumer preferences, where health and convenience intersect, influencing the direction of investments and acquisitions in the food sector.