Start-up businesses that are pioneering new ingredients, foods, and packaging have a new source of funding.
recently announced it is launching eighteen94 capital
(1894) with the intent of investing in start-up food businesses that the company perceives are on the cutting edge of ideas and trends. (In case you're wondering, 1894 is the year W.K. and his brother, Dr. John Harvey Kellogg, accidentally discover the process of creating flaked cereal as they experimented with shredded wheat cereal.)
1894's managing director will be Simon Burton, an executive with 10 years experience at Kellogg. He also has extensive investment experience in the consumer products sector and with start-ups.
Kellogg says the move comes at a time when consumers' preferences are moving toward more diverse tastes and trends and 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," says Gary Pilnick, vice chairman of Kellogg Company. "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."
With plans for 1894 intends to invest approximately $100 million the fund will play an important role in achieving Kellogg's 2020 strategic growth objectives, company officials say.
"We want to help take our partners' innovative spirit and passion as far as they can go," says Burton. "We want to help create the ideal conditions for growth; that's why we believe that 1894 will become the destination for ideas."
To assist with management of the fund, Kellogg partnered with Touchdown Ventures, which specializes in corporate venture capital and has offices in Los Angeles, Philadelphia, and San Francisco.
Source: Kellogg Company