When Mondelēz International launched SnackFutures in 2018, it marked a significant step in the company’s journey to solidify its position as a leader in the snacking industry.
Over the years, SnackFutures has shifted its focus from investing in new brands to purchasing stakes in businesses that offer valuable products, technology, or insights. This change led to the renaming of the entity to SnackFutures Ventures, reflecting its new investment strategy.
CPGs like Mondelēz are adapting their approach to innovation amid challenges like rising costs. General Mills, for instance, closed its in-house innovation unit and paused outside investments through its venture arm.
Luba Safran, who oversees investing for SnackFutures Ventures, shared insights on Mondelēz’s innovation strategy and the impact of the current economic environment on investment opportunities.
FOOD DIVE: How has SnackFutures Ventures evolved since its inception in 2018?
LUBA SAFRAN: SnackFutures was founded during a time when open innovation was gaining traction in the CPG industry. The focus was on using innovative approaches to drive growth.
While SnackFutures initially launched its own brands and investments, it has now shifted its focus to venture investing. This strategic shift allows the company to leverage its learnings from past initiatives and use venturing as a tool for sustainable growth.
What has Mondelēz learned from its early days at SnackFutures?
The company has gleaned valuable insights from its previous brand launches and accelerator programs, which are now being utilized in SnackFutures Ventures. This new focus on venture investing allows Mondelēz to capitalize on strategic opportunities and continue its growth trajectory.
What kind of investments is SnackFutures Ventures exploring?
SnackFutures Ventures is looking at investing in CPG brands, with a particular focus on fast-growing companies aligned with Mondelēz’s core product categories. Additionally, the entity is exploring tech-focused investments and disruptive snack brands.
Why has SnackFutures Ventures been selective in its investments?
As a corporate venture capital group, SnackFutures Ventures prioritizes investments that offer both financial and strategic returns for Mondelēz. This selective approach ensures that each investment aligns with the company’s long-term goals and objectives.
How is the investment market for SnackFutures Ventures in the current economic climate?
The current economic environment presents challenges and opportunities for SnackFutures Ventures. While there is no shortage of investment opportunities, many companies are facing financial distress, creating unique considerations for potential investments. Despite these challenges, SnackFutures Ventures remains actively engaged in evaluating potential deals.