Kellogg Company announced June 20 that it is establishing a fund called eighteen94 capital (1894) to make minority investments in companies pursuing next-generation innovation, bolstering access to cutting-edge ideas and trends.
The investment mandate includes start-up businesses pioneering new ingredients, foods, packaging, and enabling technology.
1894 intends to invest approximately $100 million. As a result, it will play an important role in achieving Kellogg’s 2020 strategic growth objectives. 1894 will invest in emerging businesses in both Kellogg’s core categories and adjacent categories, and in companies that have developed new consumer-driven technologies that could lead to long-term, mutual growth opportunities.
While stage-agnostic, the fund will emphasize early stage opportunities with companies that have demonstrated good product and market fit and have generated initial revenue.
“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 Company.
“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,” he added.
According to Fortune, 301, the VC fund from Kellogg competitor General Mills, “has made a handful of startup investments in recent months, including backing cottage cheese maker Good Culture, plant-based food maker Beyond Meat, and kale chips brand Rhythm Superfoods.”