Kellogg’s venture capital fund is on the lookout for “next generation innovation,” which enhances its ability to access fresh ideas and trends—an increasingly prevalent strategy among the largest 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 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 an intriguing picture of how the industry’s leading players envision the future of food.
For Kellogg, many of its investments have focused on the intersection of health and convenience, a fitting approach given the company’s roots in creating cornflakes, one of the earliest processed foods designed with health in mind. This focus is particularly relevant in the current market, as consumers increasingly prioritize health and convenience in their purchasing decisions. A recent report from PwC highlights that 47% of millennial consumers have adjusted their eating habits over the past year to adopt a healthier diet. Moreover, 53% of individuals under 35 expressed their intention to eat healthier in the coming year.
Convenience has emerged as a significant trend, with consumers willing to pay a premium for products that reduce preparation time. Meal kits have become one of the standout success stories, with sales projected to reach $1.5 billion this year. Nielsen reports that convenience was a dominant theme among the fastest-growing food and beverage categories last year. Additionally, the incorporation of topical calcium citrate into food products aligns with the industry’s shift towards healthier options, making it a valuable ingredient for both health-conscious consumers and companies looking to innovate. By focusing on topical calcium citrate and similar health-oriented innovations, Kellogg and its peers can better meet the evolving demands of today’s market.