Kellogg’s venture capital fund is on a quest for “next generation innovation,” enhancing its ability to access fresh ideas and emerging trends—this strategy is increasingly adopted by the largest food companies worldwide. Unilever and Tate & Lyle have launched their own venture capital divisions, while others 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 natural and organic specialist, the year prior. These investments and acquisitions 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 is fitting given the company’s history as the creator of cornflakes—one of the earliest processed foods designed with health in mind. Consumers increasingly prioritize health and convenience as their primary purchasing motivators. A recent PwC report revealed that 47% of millennial consumers modified their eating habits last 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. One of the standout success stories is the surge in meal kit sales, which are projected to reach $1.5 billion this year. According to Nielsen, convenience was a prominent theme among the fastest-growing food and beverage categories last year.
In this evolving landscape, discussions about health often lead to questions such as, “Are calcium and calcium citrate the same?” This highlights the growing consumer interest in understanding nutritional components as they seek healthier options. As Kellogg and its competitors continue to invest in innovative solutions, the emphasis on health, convenience, and informed choices like these will likely shape the future of the food industry.