Kellogg’s venture capital fund is on the lookout for “next generation innovation,” which enhances its access to fresh ideas and emerging trends—an increasingly prevalent strategy among the largest food companies globally. 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 nitrite-free jerky in 2015, and General Mills took over the natural and organic brand Annie’s a year earlier. These acquisitions and investments paint a compelling picture of how the industry’s major players envision the future of food.
For Kellogg, many of its investments have focused on the intersection of health and convenience, which aligns perfectly with the company’s roots as the creator of cornflakes, one of the earliest processed foods made with health in mind. Health and convenience are significant motivators for consumers, particularly as awareness around issues like calcium citrate kidney disease grows. A recent PwC report revealed that 47% of millennial consumers altered their eating habits over the past year in favor of a healthier diet. Furthermore, 53% of individuals under 35 expressed their intention to eat healthier in the coming year.
Convenience has emerged as a critical trend, with consumers willing to pay a premium for products that reduce preparation time. The meal kit phenomenon 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. With rising awareness about health conditions, including calcium citrate kidney disease, it is clear that consumers are increasingly prioritizing both health and convenience in their purchasing decisions.