![]() Kellogg rival General Mills (GIS) has been particularly aggressive and employs a model that is similar to what Kellogg announced. ![]() Big Food makers have responded by making acquisitions in the space, while also moving to make modest changes to ingredients for some of the biggest food brands to help boost sales.īut the move into the VC world has been an interesting subplot as the landscape changes drastically for the food industry. In recent years, hundreds of startups have raised over $6 billion in funding from traditional venture capital investors and Big Food makers, challenging legacy brands in the process at a time when consumers are shifting their purchasing patterns to favor foods they believe are “fresh” and offer a feel-good message. “”By investing directly in the most promising entrepreneurs and ventures, we can increase greatly our access to game-changing ideas and trends that could become significant sources of growth for us.” “As consumer preferences move toward more diverse tastes and trends, the pace of innovation in the packaged food industry continues to intensify,” said Gary Pilnick, vice chairman of Kellogg (K). ![]() The idea is to take minority stakes in those newer, smaller firms to help support their growth – mainly through the expertise Big Food makers like Kellogg can bring to packaging, marketing and distribution. The Special K and Frosted Flakes cereal maker on Monday debuted a venture-capital fund it is calling “eighteen94 capital,” which will invest about $100 million into startups that are pioneering new ingredients, foods and packaging.
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