Nutella-maker Ferrero to gobble up cereal giant Kellogg for $3.1 billion
American cereal giant Kellogg and Italian candy giant Ferrero have struck a sweet deal worth $3.1 billion.
Ferrero, the family-owned maker of Nutella, has agreed to buy the iconic American maker of Froot Loops and Frosted Flakes, combining two of the world’s most storied sweet brands.
“Joining Ferrero will provide WK Kellogg Co with greater resources and more flexibility to grow our iconic brands in this competitive and dynamic market,” WK Kellogg CEO Gary Pilnick said in a statement.
Rapidly changing consumer habits are the context for this deal, as U.S. shoppers are increasingly either looking to store-brand snacks and cereals in search of a deal or reaching for heathier choices. Kellogg is also working to phase out artificial dyes from its products.
The company in May reported a decline in sales and lowered its financial forecast for the year. Its new deal with Ferrero will face reviews by Kellogg’s shareholders as well as federal regulators.
Ferrero was founded in Italy nearly 80 years ago and has lately been on a quest to expand its American reach. The company has bought ice cream company Wells Enterprises, known for Blue Bunny and Halo Top brands, in addition to Nestle’s American chocolate business, which includes Butterfinger and Raisinets.
“Over recent years, Ferrero has expanded its presence in North America, bringing together our well-known brands from around the world with local jewels rooted in the U.S. Today’s news is a key milestone in that journey,” Giovanni Ferrero, executive chairman of the Ferrero Group, said in a statement on Thursday.
Kellogg’s parent company first split about two years ago, spinning off its North American cereal business (with Rice Krispies and Kashi) into WK Kellogg. The other half, the snacking business (with Cheez-Its and Pop-Tarts), was last year sold to Virginia-based Mars (with M&Ms and Juicy Fruit) in a massive $30 billion deal.
Alabama executes man with nitrogen gas for 1993 murder over $200 drug debt
ATMORE, Ala. (AP) — An Alabama man convicted of helping to burn a man alive in 1993 over a $200 drug debt was executed by nitrogen gas on Thursday. Anthony […]
Chess body investigating ex-world champion who accused Daniel Naroditsky of cheating
U.S. chess grandmaster Daniel Naroditsky died this week at age 29. Former world champion Vladimir Kramnik had accused Naroditsky, among others, of cheating in the sport.
‘A slap in the face’: Ranchers feel betrayed by Trump’s plan to buy Argentine beef
Over the past few days, cattle ranchers and agricultural groups have been sounding the alarm that a plan to import more foreign beef would hurt struggling ranchers.
A few things to consider before committing a museum heist
Art heists may sound glamorous, but stealing priceless cultural artifacts doesn't always pay off like you'd expect. We talked with a veteran art thief, a lawyer, and an expert on heist economics.
‘Why does my toddler … ?’ Your kiddo’s most confounding behavior, decoded
Why does my toddler say "no" to everything? Say everything is "mine"? Want to crash into everything? Child development experts unpack common toddler behaviors and offer advice on how parents can cope.
‘It Was Just an Accident’ is a blast of pure anti-authoritarian rage
Iranian director Jafar Panahi has been arrested repeatedly in his home country. His shockingly funny new revenge thriller was informed by the stories of people he met in prison.
