Food Business News - June 28, 2016 - (Page 35)

Kellogg launches $100 million venture capital fund BATTLE CREEK, MICH. - Kellogg Co. has launched eighteen94 capital (1894), a $100 million venture capital fund to invest in startups pioneering in food Kellogg adds Pure Organic to Kashi portfolio SOLANA BEACH, CALIF. - Kashi Co., a business unit of Kellogg Co., has acquired Pure Organic, a maker of organic nutrition bars and fruit snacks. Financial terms were not disclosed. Pure Organic started in founder Veronica Bosgraaf's kitchen 10 years ago, when she began making snacks for her six-year-old daughter, who had decided to become a vegetarian. Products are certified organic and free of gluten, soy and dairy. The brand offers fruit and nut bars, ancient grain bars and fruit and veggie strips made with simple ingredients. In a video statement on the brand's Facebook page, Ms. Bosgraaf said, "One of the reasons I knew Kashi was a great fit for Pure was because they fell in love with Pure for all the right reasons, the same reasons we love the brand. They appreciated the homegrown roots and the values that we stand for and the effort that we put into making delicious organic products. "Since I started Pure, it has been a daily goal of mine to bring more nutritious organic food to more people. Kashi has the resources, the knowledge, better distribution, to allow us to do just that." For Kashi, the acquisition comes at a time when the brand is working to revamp its offerings to align with today's consumer preferences. Recent innovation includes gluten-free crackers made with teff, an ancient grain; savory snack bars featuring such flavors as chickpea curry and chili, quinoa corn and roasted pepper, and basil white bean and olive oil; and a new line of organic protein powder blends. The moves are aimed at reigniting growth at Kashi following a period of weakness. FBN June 28, 2016 ingredients, packaging and technology. "As consumer preferences move toward more diverse tastes and trends, the pace of innovation in the packaged food industry continues to intensify," said Gary Pilnick, vice-chairman of Kellogg. "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." Through 1894, Kellogg seeks to invest in emerging companies in both its core categories and adjacent categories, as well as in businesses that have developed consumerdriven technologies that may lead to longterm, mutual growth opportunities. Though stage-agnostic, the fund will focus on early stage businesses that have demonstrated proof of concept in the marketplace and have generated initial revenue. Simon Burton, a 10-year executive at Kellogg with extensive investment experience, will manage 1894 as managing director. Additionally, Kellogg has partnered with Touchdown Ventures, which specializes in corporate venture capital, to assist with managing the fund. "We want to help take our partners' innovative spirit and passion as far as they can go," Mr. 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." By establishing 1894, Kellogg joins a list of companies, including General Mills, Inc., Campbell Soup Co., and the Hain Celestial Group, Inc., that have initiated similar endeavors within the past year. FBN PAULA LOVES RED SWEETS, HER PARENTS WANT TO KNOW WHAT MAKES IT SO APPEALING Your consumers are increasingly informed HIV\[[OLJSHPTZILULÄ[ZHUKPUNYLKPLU[Z of your sweets. They also want to know ^OLYLP[JVTLZMYVTHUKOV^P[HɈLJ[Z their child's health. You can count on us to help you answer their questions correctly. GO TO for a consult with a specialist GROWING COLOURS FOODBUSINESS NEWS ® 35

Table of Contents for the Digital Edition of Food Business News - June 28, 2016

Food Business News - June 28, 2016
What will Brexit mean for U.K. food and agriculture?
Obesity rate rises as sweetener use declines
Beverage Business News - Protein on trend in R.-T.-D. beverages
Table of Contents
Web Contents
Editorial - Market fragmentation intensifies C.P.G., retail competition
Coca-Cola invests in organic aloe water beverage maker
Dunkin’ Donuts evolves with expansion of beverage portfolio
Philadelphia passes tax on caloric, diet beverages
Post said to be considering combining with Lamb Weston
Teasdale adds to private label portfolio with purchase of Mesa Foods
CVS to expand selection of healthier foods, will add to private label line
Monster moving beyond energy beverages with debut of Mutant, Hydro
Coca-Cola changing its soft drink strategy to focus on ‘shaping choice
McDonald’s to relocate corporate headquarters
Smucker earnings soar on coffee sales, pet food acquisition
A squeeze on pectin
Picking out pectin alternatives
Kellogg launches $100 million venture capital fund
Kellogg adds Pure Organic to Kashi portfolio
TreeHouse Foods profiles the changing private label consumer
Martha Stewart enters meal kit market with delivery subscription service
B&G Foods ready to ‘fight back’ in frozen food aisle
Washington - Audit finds F.D.A. must improve food recall process
Snack Trends - Key trends unveiled at Sweets & Snacks 2016
Crispy, convenient and gluten-free
When gluten-free orders get serious
Company profile - WhiteWave Foods eyeing $3 billion in additional U.S. plant-based foods sales
WhiteWave’s Earthbound Farm brand set to soar in fresh and frozen
Industry Images - Record attendance at 2016 Purchasing Seminar
New Food Products
Ingredient Market Trends - Post-eleventh hour compromise on G.M.O. labeling
Ingredient Markets
Supplier Innovations and News
Ad Index
Food Business in the News

Food Business News - June 28, 2016