Kellogg launches venture capital fund to support growth of start-ups

Kellogg has established eighteen94 (1894) to make minority investments in organisations pursuing next-generation innovation.

The Michigan-based food manufacturer will invest in start-up companies pioneering new ingredients, foods, packaging, and enabling technology.

Kellogg Company 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."

1894 intends to invest approximately $100m in start-ups in Kellogg’s core and adjacent categories, as well as companies that have created new consumer-driven technologies.

Kellogg also partnered with Touchdown Ventures, which specialises in corporate venture capital, to assist with management of the fund.

1894 managing director Burton said: "We want to help take our partners’ innovative spirit and passion as far as they can go. We want to help create the ideal conditions for growth; that’s why we believe that 1894 will become the destination for ideas."