US-headquartered food producer Kellogg launched a $100m corporate venturing fund called Eighteen94 Capital (1894) yesterday that will invest in strategically beneficial startups.
Target areas for 1894 include companies developing innovative foods, ingredients, packaging and food enabling technology. Kellogg said in a statement it will provide “approximately $100m” for the fund, which will also work with the company’s organic cereals subsidiary, Kashi.
Simon Burton, Kellogg’s vice-president of investor relations, will head the fund as managing director while venture capital firm and corporate VC fund manager Touchdown Ventures will provide assistance.
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 is truly a win-win.”
The establishment of 1894 follows similar moves by food manufacturers General Mills and Campbell Soup, both of which have launched their own corporate venturing vehicles over the past year.