How Big Food Can Win with Startups: Lessons from Mondelēz’s SnackFutures Venture Strategy

By Agroempresario.com

As consumer demands evolve and pressure mounts on legacy brands to stay relevant, big food companies are looking beyond their own walls for innovation. But finding the right way to work with startups remains a challenge. According to Richie Gray, head of SnackFutures Ventures at Mondelēz International, “no one has nailed it quite yet”—but valuable lessons have been learned.

SnackFutures was originally launched as both a corporate innovation hub and a venture arm, aiming to invent and invest simultaneously. While in-house incubation led to some promising concepts like Dirt Kitchen and CaPao, these startups struggled to scale within Mondelēz due to misalignment with core business unit priorities.

“We launched a lot of products, but we struggled to really bring them to life,” says Gray. “Our business units had bigger businesses and bigger brands to focus on.”

This led to a strategic pivot. SnackFutures is now a corporate venture capital (CVC) platform focused on investments rather than incubation. The team taps into external entrepreneurial talent, investing in early to growth-stage startups in strategic areas like cocoa innovation, sugar alternatives, AI, and sustainable packaging.

No Fixed Fund, Just Strategic Flexibility

Unlike traditional venture capital (VC) firms, SnackFutures doesn’t operate with a fixed fund size or a quota of investments per year. Its capital comes directly from Mondelēz’s balance sheet, allowing the team to react to opportunities in real time.

“We’re highly strategic,” says Gray. “We invest when we see the right business that can fulfill our objectives.”

This approach allows SnackFutures to avoid “forced investments” and instead focus on companies that align with long-term corporate goals, whether in brand innovation or enabling technologies.

Lean Approval, Hands-On Support

SnackFutures prides itself on its efficient deal-making. With a lean investment committee that includes the CEO, CFO, and Chief Strategy Officer, approvals happen in “weeks, not months.” Once a deal is signed, Mondelēz supports startups with access to expertise, infrastructure, and even personnel.

“Sometimes we create roles inside portfolio companies where Mondelēz people work a couple of days a week,” says Gray. “It’s usually in marketing or distribution, helping them scale faster.”

SnackFutures typically takes minority stakes and a board seat only when it adds value. The key, Gray notes, is managing expectations early and fostering a collaborative, coachable relationship with founders.

Investing with Acquisition in Mind—But Not Always

While many financial VCs focus on fast growth and eventual exits, SnackFutures views its investments differently. Ideally, the exit is an acquisition by Mondelēz, but that’s not guaranteed. In some cases, the goal is to access technology or innovation that strengthens internal capabilities, without necessarily taking full ownership.

“We don’t insist on rights of first refusal,” explains Gray. “We’re flexible. Founders need the freedom to stay competitive.”

Strategic Focus Areas: From Cocoa to AI

SnackFutures targets disruptive brands in the snacking space but is especially focused on technology-driven solutions. One example is Celleste Bio, an Israeli startup producing cell-cultured cocoa, which aligns with the company’s interest in securing a resilient and sustainable cocoa supply chain.

Other areas of focus include:

• Sugar alternatives
• Alternative fats and oils
• AI and automation in supply chain
• Smart packaging and consumer experience technologies

Accelerators and Open Innovation: Expanding the Ecosystem

SnackFutures works closely with Mondelēz’s open innovation team and supports broader initiatives like the 100+ Accelerator and the now-paused CoLab Tech program. These platforms provide alternative ways to engage with startups, whether through joint development agreements, material transfers, or offtake deals.

“We often broker these partnerships and then bring in R&D or other departments,” Gray adds.

Cautious Climate, Clear Pipeline

Despite global volatility and investor caution, SnackFutures maintains an active pipeline thanks to strong connections in startup ecosystems across Europe and the U.S. It partners with scouting networks, other CVCs, and VCs to identify emerging technologies early.

“We’re very careful where we put our money,” says Gray. “But we feel good about our deal flow.”

Key Takeaway: Flexibility and Alignment Are Essential

For big food companies seeking to collaborate with startups, SnackFutures offers a key lesson: don’t force a startup into your system. Instead, find aligned, coachable teams, offer strategic support, and stay flexible on structure to ensure a win-win.

“The days of doing everything internally are over,” says Gray. “True innovation will come through partnerships.”