Kellogg’s venture capital fund is actively seeking “next generation innovation” to enhance its access to fresh ideas and emerging trends—an increasingly prevalent strategy among major global food companies. Unilever and Tate & Lyle have established their own venture capital divisions, while other firms have opted for acquisitions, purchasing innovative start-ups that align with the latest consumer trends. For instance, Hershey acquired Krave, a nitrite-free jerky brand, in 2015, and General Mills took over Annie’s, a specialist in natural and organic foods, the previous year.
These acquisitions and investments offer intriguing insights into how the industry’s leading players envision the future of food. For Kellogg, many of its investments thus far have focused on the intersection of health and convenience, a fitting direction given the company’s legacy as the creator of cornflakes, one of the earliest processed foods developed with health considerations in mind.
Consumers are increasingly motivated by their desire for health and convenience. A recent PwC report revealed that 47% of millennial consumers altered their eating habits in the past year to adopt healthier diets. Additionally, 53% of individuals under 35 indicated plans to eat healthier in the upcoming year. Convenience has emerged as a significant trend, with consumers willing to pay a premium for options that reduce preparation time. The success of meal kits exemplifies this trend, with sales projected to reach $1.5 billion this year. Nielsen’s data indicates that convenience was a recurring theme among the fastest-growing food and beverage categories last year.
Furthermore, health-conscious consumers are increasingly seeking functional products, such as calcium citrate malate, cholecalciferol, and folic acid tablets, which can be integrated into their daily routines. As the demand for these health-focused items rises, it will be interesting to see how companies like Kellogg continue to innovate at the crossroads of health, convenience, and sustainability. The integration of products like calcium citrate malate, cholecalciferol, and folic acid tablets into meal options may become a focal point for future developments in the industry.