Mondelēz has recently made a strategic decision to wind down its innovation hub SnackFutures and its CoLab Program, which have been instrumental in accelerating early-stage snack brands for the past five years. In its place, the consumer behemoth has launched a corporate VC, SnackFutures Ventures, signaling a shift in focus towards growth-stage companies poised to be the “disruptors of the future,” as stated by Richie Gray, VP and Global Head of SnackFutures.
The Birth of SnackFutures Ventures
The inception of SnackFutures Ventures is a reflection of Mondelēz’s commitment to doubling down on investments in companies that align with its existing categories and markets. Unlike its predecessor, SnackFutures, the new entity will invest directly off Mondelēz’s balance sheet and adopt a more selective and strategic approach towards funding targets. This strategic shift underscores Mondelēz’s intention to nurture and scale up businesses that offer value within its portfolio.
SnackFutures Ventures has outlined stringent criteria for potential investment targets. The focus lies on early-stage brands that disrupt Mondelēz’s core categories such as chocolate, biscuits, and baked goods. Additionally, the targeted companies must demonstrate strong revenue streams, with a minimum of $20 million in annual revenue, positive EBITDA, and profitability. The aim is to acquire these companies within three to four years of the initial investment, showcasing a long-term commitment to fostering sustainable growth.
Although the primary focus remains on the U.S. market, SnackFutures Ventures is actively seeking opportunities in other regions, notably Europe and India. By forging relationships and exploring diverse markets, Mondelēz aims to diversify its portfolio and tap into emerging trends in the snack industry. The recent investments in Israeli startups such as Celeste Bio highlight the company’s global outlook and willingness to explore innovative technologies.
SnackFutures Ventures adopts a measured approach to capital deployment, with an average check size of $2-3 million per investment. The company aims to make two to three deals per year, prioritizing quality over quantity in a market characterized by fluctuating valuations. By maintaining a pragmatic approach to valuation and focusing on sustainable growth, Mondelēz aims to strike a balance between investor expectations and long-term value creation.
The transition from SnackFutures to SnackFutures Ventures signifies a pivotal shift in Mondelēz’s investment strategy, underscoring its commitment to fostering innovation and sustainable growth in the snack industry. By aligning with companies that offer disruptive technologies and sustainable revenue streams, Mondelēz aims to position itself as a key player in the evolving snacking landscape.
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