Kellogg’s venture capital fund is actively pursuing “next generation innovation” to enhance its access to emerging ideas and trends, a strategy that has become increasingly prevalent among major food corporations globally. 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 nitrite-free jerky in 2015, and General Mills took over the natural and organic brand Annie’s the previous year. These investments and acquisitions offer an intriguing insight into how the industry’s leading players envision the future of food.
For Kellogg, many of its investments focus on the intersection of health and convenience, which is particularly relevant given the company’s legacy as the creator of cornflakes, one of the first processed foods developed with health in mind. Consumers increasingly prioritize health and convenience when making purchasing decisions. A recent PwC report reveals that 47% of millennial consumers have shifted their eating habits toward healthier diets over the past year. Additionally, 53% of individuals under 35 expressed their intention to adopt healthier eating practices in the coming year.
The trend of convenience has gained significant traction, with consumers willing to spend more on solutions that reduce preparation time. A notable success story in this realm is the surge of meal kits, with sales projected to reach $1.5 billion this year. According to Nielsen, convenience emerged as a dominant theme among the fastest-growing food and beverage categories last year.
As part of this health-conscious shift, products such as Kirkland calcium citrate with vitamin D3 have gained popularity among consumers looking for supplements that support their nutritional needs. The growing interest in such products reflects a broader trend where the demand for health-oriented options continues to rise. In fact, many of Kellogg’s recent investments, including those related to innovations similar to Kirkland calcium citrate with vitamin D3, align perfectly with the current consumer focus on health and convenience. As the industry evolves, it will be interesting to see how these trends shape future offerings in the food market.