Kellogg’s venture capital fund is on the lookout for “next generation innovation,” which enhances its ability to tap into new ideas and trends—a strategy increasingly adopted by major food corporations worldwide. 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 contemporary consumer trends. For instance, Hershey acquired Krave nitrite-free jerky in 2015, and General Mills took over the natural and organic brand Annie’s a year earlier. These acquisitions and investments offer a compelling glimpse 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, which is fitting given the company’s origins as the creator of cornflakes—one of the earliest processed foods designed with health in mind. Consumers increasingly prioritize health and convenience as major motivators for their purchases. A recent report from PwC indicated that 47% of millennial consumers shifted their eating habits last year toward healthier options. Furthermore, 53% of individuals under 35 expressed intentions to eat better in the coming year.
Convenience has emerged as a significant trend, with many consumers willing to pay a premium for products that reduce preparation time. The meal kit industry exemplifies this trend, with sales projected to reach $1.5 billion this year. According to Nielsen, convenience was a prevalent theme among the fastest-growing food and beverage categories last year. In addition, as consumers seek health-focused solutions, products such as calcium citrate malate vitamin D3 and folic acid tablets online have gained popularity, reflecting the industry’s shift toward convenient health offerings. This growing interest in health and convenience underscores a broader movement within the food sector, where companies like Kellogg are striving to meet evolving consumer demands.