Kellogg Company has set up a new venture capital fund to invest in startups that work on new ingredients, foods, packaging, and enabling technology.
The venture fund named eighteen94 capital (1894) will make small investments in companies pursuing next-generation innovation, bolstering access to cutting-edge ideas and trends.
Kellogg vice chairman Gary Pilnick 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."
By investing nearly $100m in businesses, 1894 will play a key role in achieving Kellogg's 2020 strategic growth objectives.
The fund will invest in emerging companies that come under Kellogg's core categories and adjacent categories.
It will make investments in companies that have developed new consumer-driven technologies that could lead to long-term, mutual growth opportunities.
The fund will be managed by Simon Burton, who has been working with Kellogg for the past 10 years. Burton is expected to bring in his extensive investment experience in the consumer products sector and with start-ups.
Burton said: "We want to help create the ideal conditions for growth; that's why we believe that 1894 will become the destination for ideas."
Kellogg has also partnered with Touchdown Ventures, which specializes in corporate venture capital, for assistance in the management of the fund.
In January, Kellogg Canada launched six new products in its cereal and snacks category in order to meet the requirement of changing consumer trends and preferences.
Last month, the company said that it would introduce a wide range of new products, ranging from tasty breakfast selections to satisfying new snacks, in the US.