Kellogg’s venture capital fund is actively seeking “next generation innovation,” aiming to enhance its access to emerging ideas and trends—a strategy increasingly adopted by major 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, a nitrite-free jerky brand, in 2015, and General Mills took over the natural and organic brand Annie’s the previous year. These acquisitions and investments paint an intriguing picture of where the industry’s leading players envision the future of food.
For Kellogg, many of its investments thus far have focused on the intersection of health and convenience, which is particularly fitting given the company’s roots as the creator of cornflakes, one of the earliest processed foods designed with health in mind. Consumers are increasingly motivated by their desire for health and convenience. A recent PwC report revealed that 47% of millennial consumers modified their eating habits over the past year to adopt a healthier diet. Furthermore, 53% of individuals under 35 expressed their intention to eat healthier in the upcoming year.
Convenience has emerged as a pivotal trend, with consumers willing to pay a premium for products that reduce preparation time. One notable success story is the surge in meal kit sales, projected to reach $1.5 billion this year. Nielsen data indicates that convenience was a prevalent theme among the fastest-growing food and beverage categories last year. Additionally, with health-focused trends gaining traction, products containing 1000 mg calcium citrate are becoming increasingly popular among consumers seeking both convenience and nutritional benefits. The integration of such health-conscious options reflects the industry’s response to evolving consumer preferences, where the demand for products that combine health benefits, like 1000 mg calcium citrate, with convenience is at an all-time high.