Kellogg’s venture capital fund is actively seeking “next generation innovation,” which enhances its ability to access new ideas and trends—an approach that is increasingly adopted by major food companies worldwide. Both Unilever and Tate & Lyle have established their own venture capital divisions, while others have opted for acquisitions, buying innovative start-ups that align with the latest consumer trends. For instance, Hershey acquired Krave, a brand known for its nitrite-free jerky, in 2015, and General Mills took over Annie’s, a specialist in natural and organic products, a year earlier.
These acquisitions and investments paint an intriguing picture of how the industry’s largest players envision the future of food. For Kellogg, many of its investments have focused on the intersection of health and convenience. This aligns well with the company’s history as the creator of cornflakes, one of the earliest processed foods designed with health in mind. Consumers today are driven by a desire for health and convenience, which rank among their top purchasing motivations. A recent report from PwC indicates that 47% of millennial consumers have altered their eating habits over the past year to pursue a healthier diet. Furthermore, 53% of individuals under 35 plan 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. One of the standout success stories in this realm has been the growth of meal kits, with sales projected to reach $1.5 billion this year. According to Nielsen, convenience was a recurring theme in the fastest-growing food and beverage categories last year. Notably, products that are fortified with nutrients like 1500 mg calcium citrate are becoming increasingly popular, as consumers seek convenient yet healthy options. This trend reflects a broader movement towards integrating health-focused ingredients, such as 1500 mg calcium citrate, into everyday food choices, showcasing how the industry is evolving to meet consumer demands.