Mondelēz International recently launched SnackFutures Ventures, a corporate venture capital division dedicated to investing in advancing snacking categories. As part of the SnackFutures innovation hub, the new venture will prioritize investments in businesses that contribute to product healthiness, sustainability and meet changing consumer trends.
SnackFutures Ventures follows the conclusion of Mondelēz’s SnackFutures innovation hub and the CoLab Program. These initiatives previously played key roles in promoting innovation within the company. The new investment scheme hints at a revised strategic approach, poised to enhance Mondelēz’s market position and competitiveness.
The venture seeks to support businesses that harmonize with Mondelēz’s current markets. An illustration of this strategy is the $340 million acquisition of Paleo chocolate company Hu Master Holdings in 2021.
Mondelēz’s SnackFutures: Investing in healthier snacks
This purchase embodies the venture’s emphasis on health-conscious and sustainable snacks. The move not only diversified Mondelēz’s product line-up but also positioned them as a future-focused player in the industry.
Richie Gray, the Vice President and Global Head of SnackFutures, emphasized that the corporate venture model best suits Mondelēz’s objectives over a startup accelerator. The model allows the company to invest in, and closely nurture innovation, thereby fostering the success of emerging brands and businesses.
With a focus on brands disrupting Mondelēz’s sectors, including chocolate, biscuits and baked goods, SnackFutures Ventures plans to invest in top-rated firms with minimum annual revenues of $20 million. A proven record of innovation, financial strength, high in-store sales velocities, and significant customer loyalty are amongst factors guiding selection.
SnackFutures Ventures anticipates spending around $2-3 million per agreement, with an aim of sealing two to three deals annually. Despite market downturns, Gray highlights the criticality of maintaining a strong equity position to stimulate additional investments and foster economic rebound.
