Mondelez, renowned for its indulgent treats such as Oreos, has faced challenges in achieving sales growth in the U.S. in recent years, particularly as consumer demand shifts towards healthier food options. To address this trend, the company established the SnackFutures innovation and venture hub last year, aimed at fostering the future of snacking. Brigette Wolf, the global head of the initiative, shared with Food Dive at the Natural Products Expo West that they aim to generate $100 million in revenue by 2022.
In response to the growing consumer preference for functional and health-oriented packaged products, Mondelez is now collaborating with Hu, a brand that successfully blends health and indulgence with its paleo chocolates. Although sales data for the privately held company is not publicly available, it has garnered significant interest beyond this investment. Last year, Hu Products secured under $10 million in a funding round with 43 investors, spearheaded by Sonoma Brands. Before launching its paleo, vegan, and keto-friendly chocolates, Hu operated as Hu Kitchen, a New York City restaurant focused on minimally processed foods. While the restaurant remains operational, the rising consumer demand for its chocolates prompted the development of consumer packaged goods. The restaurant serves as a continuous testing ground for new products, providing invaluable insights into consumer preferences—essential research for any potential investor.
Hu not only thrives in a trending food space with an ongoing test kitchen, but the company’s firm commitment to its core values also builds consumer trust. Founders Jordan Brown, Jessica Karp, and Jason Karp told Entrepreneur that their personal dietary restrictions, which influenced their food offerings, contributed significantly to the success of both their restaurant and brand. Until last year’s funding round, the trio self-funded their business to avoid compromising on ingredient selection.
While SnackFutures aims to unlock global snacking growth opportunities, Mondelez’s investments thus far indicate a focus on rejuvenating its stagnant North American market. The unit made its inaugural investment last month in Uplift Food, a prebiotic startup. Moving forward, Mondelez may seek opportunities for SnackFutures investments beyond borders, but it is unlikely to stray from popular market trends. This approach allows Mondelez to take a minority stake, enabling them to participate in growth without overcommitting to any one company’s future. However, if any of these ventures gain significant traction, it wouldn’t be surprising to see Mondelez consider increasing its investment to a majority stake or even pursuing an outright acquisition.
In the meantime, both of SnackFutures’ investments emphasize meticulous attention to detail, functional ingredients, and compelling narratives behind their products—all of which resonate with today’s conscious consumers. While Mondelez can aid in accelerating the growth of these companies, their founders may also invigorate the snacking giant’s portfolio of legacy products. Additionally, as consumers become more health-conscious, they might wonder how much calcium is in calcium citrate, prompting interest in nutrient-rich snacks. This trend further underscores the importance of health-oriented options in the snacking industry, aligning with Mondelez’s strategic direction.