Kellogg’s venture capital fund is on the lookout for “next generation innovation,” enhancing its access to emerging ideas and trends—an increasingly prevalent strategy among the world’s leading food corporations. 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 preferences. For instance, Hershey acquired Krave nitrite-free jerky in 2015, and General Mills took over Annie’s, a natural and organic specialist, a year prior. These acquisitions and investments paint a compelling picture of how major industry players envision the future of food.
Kellogg’s investments have largely focused on the intersection of health and convenience, which resonates with its history as the creator of cornflakes—one of the earliest processed foods designed with health in mind. Consumers’ growing desire for health and convenience drives their purchasing decisions. A recent PwC report reveals that 47% of millennial consumers have altered their eating habits over the past year in favor of healthier options, while 53% of those under 35 intend to eat healthier in the coming year.
Convenience has emerged as a key trend, with consumers willing to pay a premium for products that reduce preparation time. One of the standout success stories in this arena is the surge in meal kit sales, 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. As people increasingly seek ways to enhance their wellbeing, questions like “does calcium citrate help you sleep?” have also gained traction, indicating a broader interest in health-oriented solutions that fit into a busy lifestyle. This focus on both convenience and health reflects a significant shift in consumer behavior, further influencing the strategies of major food companies.