Hungry for Investment: Big Food Races Toward Startups

Since 2015, we’ve seen a domino effect of leading global food companies establishing venture funds and startup incubator programs.

Most recently, Kraft Heinz launched a $100M fund, Evolv Ventures, which will invest in startups focused on supply chain and logistics, e-commerce, and direct-to-consumer models. Earlier this year, Kraft had also launched Springboard, an internal incubator and accelerator program for new brands.

We used CB Insights data to create a timeline of major food corporates launching venture funds and incubator programs.

This post was originally published in Dec’17 and was most recently updated in Oct’18. 

Food corporates announce startup initiatives

As the timeline below shows, alcohol companies Constellation Brands, AB InBev, and Diageo were slightly ahead of the curve in launching funds. Major CPG companies followed, including General Mills, Campbell’s, Kellogg’s, and Danone.

These funds operate across various structures. Some, such as General Mills’ 301 Inc., are managed internally by the corporation; others, such as Campbell’s Acre Venture Partners, are managed by external investors with the corporation (e.g. Campbell’s) as the sole limited partner (LP).

Many of the funds in this analysis have already backed startups.

Tyson Foods, a leader in global meat production, chose plant protein startup Beyond Meat for Tyson New Ventures’ first venture investment, and has since invested in Tovala and Memphis Meats. Beer giant AB InBev’s ZX Ventures backed Starship Technologies, a small self-driving delivery drone that has already partnered with DoorDash, Postmates, and others to deliver food to consumers’ doors.

Some have also strengthened their ties with other investors in the ecosystem. Danone Ventures, for example, poured $15M into NYC-based food VC firm AccelFoods.