General Mills Turns to Kale Chips to Boost Growth
- Food company invests in Rhythm Superfoods amid changing tastes
- Venture funds eyeing the next big thing have become common
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General Mills Inc., facing sluggish sales as consumers seek less processed products, is turning to a foodie favorite to help snap a slump weighing down the U.S. packaged food industry.
The maker of Cheerios and Progresso soup, which has seen sales fall in 12 of the last 13 quarters, is leading a $6 million funding round for Rhythm Superfoods, an Austin, Texas-based startup best known for its kale chips. It’s the latest investment from General Mills 301 Inc., the venture fund launched in 2015 to put money into food startups capitalizing on the shift in eating trends.