Kellogg Mimics Unilever and General Mills and Sets Up Fund to Find Tomorrow’s Star Companies

636020988427202724118.jpg

21 Jun 2016 –-- Kellogg is following the likes of General Mills and Unilever by launching an investment fund which will invest around $100m in start-ups, in the hope of identifying the Chobani of tomorrow.

The investment fund, called eighteen94 capital, will make minority investments in companies "pursuing next-generation innovation" including start-ups pioneering new ingredients, foods, packaging and technology.

Gary Pilnick, vice chairman of Kellogg, said: "As consumer preferences move toward more diverse tastes and trends, the pace of innovation in the packaged food industry continues to intensify.”

"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. “

“At the same time, we will be providing these companies with essential growth capital and access to Kellogg resources and expertise, which will help drive their ideas and businesses. It's truly a win-win."

Kellogg said the $100m identified will look to invest in businesses which the cereal maker believes will lead to long-term growth and those that are already making money.

While focusing on start-ups, the Special K maker said it could invest in those businesses which are more developed if they represent a good fit.

Eightenn94 capital will be managed by Simon Burton, a 10-year executive at Kellogg.

In addition, Kellogg has partnered with Touchdown Ventures, which specializes in corporate venture capital, to assist with management of the fund.

"We want to help take our partners' innovative spirit and passion as far as they can go," added Burton.  "We want to help create the ideal conditions for growth; that's why we believe that 1894 will become the destination for ideas."

The move taken by Kellogg mirrors those taken by other food companies, such as Campbell Soup, General Mills and Unilever.

Food giants believe that by investing in start-ups, they can make up for the shortfall of producing successful products organically.

General Mills’ 301 Inc investment fund has made a number of investments recently including Good Culture, the cottage cheese maker.

Unilever's Foundry initiative, meanwhile, set up in 2014, is focused on funding tech starts-up which Unilever believes will add to its arsenal.

Unilever has invested millions of dollars in over 60 pilots.

To contact our editorial team please email us at editorial@cnsmedia.com

Related Articles

Food Ingredients News

Campbell Soup CEO retires as company sales fall flat

21 May 2018 --- Campbell Soup has announced that its CEO Denise Morrison is retiring immediately and be replaced by board member Keith McLoughlin as interim CEO.

Packaging & Technology News

FrieslandCampina launch “innovative plant material” cardboard liter pack

21 May 2018 --- FrieslandCampina’s long-keeping chocolate milk brand, Chocomel, is set to be packaged in a new, innovative cardboard liter pack made up of 80 percent raw plant material from Tetra Pak. The move places Chocomel as the first product to be packed in the liter pack, of which wood and sugar are the parent materials.

Food Ingredients News

Biodegradable packaging: Bio-lutions helps tackle India’s crop burning concerns

08 May 2018 --- German start-up company, Bio-lutions, are taking great strides to combat India’s huge air pollution and plastic waste problems through the conversion of agriculture waste into biodegradable packaging. Starting as a pilot-plant in Bangalore, the company has big ambitions to expand operations across India and ultimately the wider world.

Food Ingredients News

Chemical giants “disappointed” after EU court backs neonicotinoids ban

18 May 2018 --- An EU court has backed a partial ban on neonicotinoids saying that the European Commission was correct five years ago when it restricted their use in a bid to protect bee populations. The General Court of the European Union confirmed on Thursday the validity of the restrictions introduced at EU level in 2013 against the insecticides clothianidin, thiamethoxam and imidacloprid because of the risks those substances pose to bees.

Food Ingredients News

Valio China establishes new business units for a growing market

18 May 2018 --- Finnish dairy company, Valio has held an unveiling ceremony for its China head office in Shanghai. The newly established head office will focus on serving the growing Chinese market. Besides the Ingredient business units, Valio China has also established the new business units of Retail and Food Service. By carrying on the century-honored Finnish heritage in innovation and high quality, Valio China will stand side-by-side with Chinese consumers to create a better life together.

More Articles