Mondelēz, a leading consumer goods company, has recently made a strategic decision to wind down its innovation hub, SnackFutures, and its CoLab Program. Instead, the company has launched a new corporate venture capital arm, SnackFutures Ventures, to focus on investing in growth-stage companies that have the potential to disrupt the market. This shift in strategy is aimed at doubling down on investments in innovative companies that align with Mondelēz’s core categories and markets.
According to Richie Gray, VP and Global Head of SnackFutures, the decision to transition from an innovation hub to a corporate venture capital model is a result of the company’s desire to scale up businesses more effectively. By investing directly from Mondelēz’s balance sheet, SnackFutures Ventures can be more strategic and selective in its funding targets. This approach allows Mondelēz to focus on investing in companies with capabilities and technologies that are relevant to their portfolio and future growth.
Investment Criteria and Targets
SnackFutures Ventures is actively seeking to invest in early-stage brands that have the potential to disrupt Mondelēz’s core categories such as chocolate, biscuits, and baked goods. The company is also targeting scale-up companies globally that have a minimum annual revenue of $20 million, positive EBITDA, and a track record of profitability. With a focus on companies with strong repeat purchases and in-store velocities, SnackFutures Ventures aims to acquire these businesses within three to four years of their initial investment.
While the U.S. market remains a primary focus for SnackFutures Ventures, the company is also exploring opportunities in larger European markets like the UK and Germany. Additionally, SnackFutures Ventures has already made investments in Israeli startups and is open to sourcing deals globally. By keeping the average check size of investments around $2-3 million, SnackFutures Ventures aims to make two to three deals per year on a rolling basis.
Market Trends and Valuations
Gray highlights the impact of the current market trends on the valuation of consumer packaged goods (CPG) companies. With many founders looking to maintain or grow their company’s value, SnackFutures Ventures is focused on keeping valuations reasonable while ensuring healthy equity in the businesses they invest in. Despite the challenges posed by the sluggish market, Mondelēz remains committed to supporting innovative companies that have the potential to drive growth and financial returns in the food industry.
The launch of SnackFutures Ventures represents a strategic pivot for Mondelēz as it seeks to invest in disruptive companies that align with its core categories and markets. By shifting its focus from an innovation hub to a corporate venture capital model, Mondelēz is positioning itself to be a key player in the evolving snack industry landscape. With a focus on scaling up businesses and maintaining strategic investments, SnackFutures Ventures is poised to drive innovation and growth in the years to come.