One of themes raised our M-Squared conference yesterday, was collaboration and co-operation; the idea that companies are much more willing to go outside for ideas than ever before. Given the pressures on innovation and differentiation, this is not that surprising. However, it does mean that companies need to think about doing business in different ways. One such example is the recent news that Nestle are establishing a $500 million venture fund to finance emerging companies. The goal is to accelerate Nestle's strategic shift from food and beverage to nutrition and wellness. The fund will invest in both science and processes that can help Nestle produce products that are more relevant to the demands of today's changing consumer. One example is frozen foods where both Nestle and Unilever were innovators, now it's a category under threat from consumers demanding healthier alternatives. Unilever is even thinking of divesting of its frozen food brands.
