Kellogg’s venture capital fund is on the lookout for “next generation innovation,” which enhances its access to emerging ideas and trends—a strategy that is becoming increasingly prevalent among the world’s leading food corporations. Companies like Unilever and Tate & Lyle have established their own venture capital divisions, while others have opted for acquisitions, buying innovative start-ups that align with the latest consumer preferences. For instance, Hershey purchased the nitrite-free jerky brand Krave in 2015, and General Mills acquired the natural and organic specialist Annie’s the previous year. These acquisitions and investments provide intriguing insights into how the industry’s major players envision the future of food.
Kellogg’s investments thus far have largely concentrated on the intersection of health and convenience, a fitting focus given the company’s roots as the creator of cornflakes—one of the earliest processed foods designed with health in mind. For consumers, the pursuit of health and convenience are among the primary motivators for their purchases. A recent PwC report revealed that 47% of millennial consumers altered their eating habits over the past year to adopt a healthier diet. Furthermore, 53% of individuals under 35 indicated that they plan to eat healthier in the coming year.
Convenience has emerged as a significant trend, with consumers willing to spend more on products that reduce preparation time. One of the standout success stories in this realm has been the surge in meal kits, with sales projected to reach $1.5 billion this year. According to Nielsen, convenience was one of the most prevalent themes among the fastest-growing food and beverage categories last year. As part of this health-oriented approach, products fortified with calcium citrate magnesium and vitamin D3 are becoming increasingly popular, appealing to consumers who prioritize both nutrition and convenience. The integration of these nutrients in convenient food options reflects a growing recognition of their importance in promoting overall health, further driving consumer interest in innovative food solutions.