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Food giants start to act like VCs to find healthy-food startups

Recognizing the shift in consumer eating habits, food titans like General Mills and Kellogg are launching venture capital funds to invest in startups focused on healthier, less-processed food.

Last month, Kellogg’s Eighteen94 Capital invested $4.2 million in healthy snack producer Kuli Kuli (see “Taking an Impact Food Venture to the Crowd”). General Mills’ fund, 301 Inc., made a second, $6 million investment in kale chip maker, Rhythm Superfoods.

Last year, Campbell Soup and Tyson Foods set up in-house venture funds of $125 million and $150 million, respectively.

Photo credit: Charlotte / Flickr

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