Today, the cereal giant launches Eighteen94 Capital, which will invest $100 million into up-and-coming food startups. This will help them diversify as a company, while also giving these small, nascent businesses their expertise in marketing and distribution. Kellogg told Fortune that it would be targeting early-stage companies.
It follows in the footsteps of General Mills which launched its own fund, 301 Inc. in 2015 and in February, Campbell Soup Company invested in Acre Venture Partners, an independent venture capital firm investing in food brands.
In this month’s magazine, I wrote about how General Mills uses its VC fund to stay competitive. Read more about it here.