The Food and Drug Administration (FDA) and consumers have been putting pressure on food companies.
The global population is much more informed about foods these days and people expect to have healthy foods available.
urthermore, the medical community is tired of junk foods causing disease. With this trend, companies are having to do a rethink on the products they sell.
It would be wise for food manufacturers to follow suit with the production of healthy foods and Kellogg cereals is one of them.
Kellogg announced that they are investing $100 million in healthy food startups.
This giant wants to establish all natural new ingredients, foods and packaging.
Kellogg wants to get rid of artificial ingredients, artificial colors and artificial preservatives by the end of 2018.
The Kellogg decision follows the lead of its major competitor, General Mills. General Mills has put out a handful of startup investments themselves ($125 million). This includes financial support for Good Culture (cottage cheese producer), Beyond Meat (plant-based foods), Rhythm Super foods (kale chips) and Campbell soups.
Consumer demand is driving the food industry towards producing nutritional foods not junk foods. This has caused Venture Capital investments in food startups to rise more recently and this trend shows no signs of slowing down.