US-based cereal and snack giant Kellogg has announced its plans to set up a new venture capital fund, called Eighteen94 Capital, which supports growth of food firms by funding $100 million in developing new businesses of new food, ingredients, packaging and technology.
With an aim to make “minority investments in companies pursuing next-generation innovation, bolstering access to cutting-edge ideas and trends”, according to a press release, the company is looking to increase access to “game-changing ideas and trends” by investing, while helping start-up businesses by accessing Kellogg’s resources and expertise.
“As consumer preferences move toward more diverse tastes and trends, the pace of innovation in the packaged food industry continues to intensify,” said Kelloogg vice chairman Gary Pilnick. “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’s decision follows similar moves made by manufacturers including Campbell Soup and General Mills, which have previously announced funds to invest in start-up businesses.
Source: Kellogg / Bakery & Snacks