Since 2015, global food giants from Tyson Foods to Land O'Lakes have launched venture funds and incubator programs to attract early-stage 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.
|Parent Company||Type||Fund||Announcement Date||Select Investments|
|Constellation Brands||Venture fund||Constellation Ventures||8/17/2015||Crafthouse Cocktails|
|AB InBev||Venture fund||ZX Ventures||9/1/2015||Canvas, Owl’s Brew, Starship Technologies, RateBeer|
|Diageo||Venture fund||Distill Ventures||10/9/2015||Seedlip, Starward Whiskey, Stauning Whiskey|
|General Mills||Venture fund||301 Inc.||10/22/2015||Good Culture, Purely Elizabeth, Rhythm Superfoods, Farmhouse Culture|
|Campbell’s Soup||Venture fund||Acre Venture Partners||2/17/2016||ImpactVision, Evolve BioSystems, Farmers Business Network, Spoiler Alert|
|Kellogg’s||Venture fund||Eighteen94 Capital||6/20/2016||MycoTechnology, Bright Greens, Kuli Kuli|
|Danone||Venture fund||Danone Manifesto Ventures||6/28/2016||Yooji, Farmer’s Fridge, Michel et Augustin|
|Chobani||Incubator||Chobani Food Incubator||7/20/2016||Grainful, Banza, Pique Tea Crystals, Love the Wild|
|Hain Celestial||Venture fund and brand incubator||Cultivate Ventures||11/1/2016||Better Bean Company|
|Tyson Foods||Venture fund||Tyson New Ventures||12/5/2016||Beyond Meat, Memphis Meats, Tovala|
|Grupo Bimbo||Internal venture fund/accelerator program in partnership with BlueBox Ventures||Bimbo Ventures/ Eleva Accelerator||7/6/2017||N/A|
|Land O’Lakes||Incubator||Land O’Lakes Dairy Accelerator||7/12/2017||Petit Pot, Dreaming Cow, Yooli Foods, Jouzge|
|Barilla||Venture fund and innovation center||Blu1877||11/16/2017||N/A|
|Thrive Market||Venture Fund||Thrive Market Ventures||3/6/2018||Square Organics|
|The Kraft Heinz Company||Incubator and accelerator||Springboard||3/7/2018||N/A|
|Mars Petcare||Venture Fund in partnerhsip with Digitalis Ventures||Companion Fund||3/9/2018||N/A|
|Mars Petcare||Accelerator in partnership with Michelson Found Animals and R/GA||Leap Venture Studio||3/9/2018||N/A|
|Kraft Heinz||Venture fund||Evolv Ventures||10/5/2018||N/A|
This report was created with data from CB Insights’ emerging technology insights platform, which offers clarity into emerging tech and new business strategies through tools like:
- Earnings Transcripts Search Engine & Analytics to get an information edge on competitors’ and incumbents’ strategies
- Patent Analytics to see where innovation is happening next
- Company Mosaic Scores to evaluate startup health, based on our National Science Foundation-backed algorithm
- Business Relationships to quickly see a company’s competitors, partners, and more
- Market Sizing Tools to visualize market growth and spot the next big opportunity