Ferrero Acquires Kellogg‘s Cookies, Fruit Snacks Business
By Hannah Prokop — 07/30/2019
The Ferrero Group has acquired the cookie, fruit and fruit-flavored snack, ice cream cone and pie crust business from The Kellogg Co. The $1.3 billion deal includes Keebler, Mother’s, Famous Amos, Murray’s and Murray’s Sugar Free, Little Brownie Bakers, Stretch Island and Fruity Snacks.
“With this acquisition, we further strengthen our position in the key North American market by adding these iconic brands to our portfolio. We very much look forward to building our journey of growth together," said Lapo Civiletti, CEO of the Ferrero Group.
In November 2018, Battle Creek, Mich.-based Kellogg said it was looking to sell its cookie and fruit snack business because these sectors had struggled in competing for resources and investments.
Oakbrook Terrace, Ill.-based Ferrara Candy Co., which was bought out by Ferrero in 2017, will manage manufacturing facilities acquired from Kellogg.
“This transaction creates a leading snacking platform with enhanced ability to be the growth partner of choice for our customers and win with consumers,” said Todd Siwak, CEO of Ferrara Candy. “We look forward to continuing to leverage our manufacturing, distribution, marketing and go-to-market expertise as we reinvigorate and grow this strong portfolio of brands.”
Kellogg sells products in more than 180 countries. With nearly $13 billion in sales in 2017, it produces a variety of cereal, snack and convenience brands, including Special K, Pringles, Kellogg's Frosted Flakes, Pop-Tarts and Kellogg's Corn Flakes.
Ferrero was founded in 1946 in Alba, Italy, and is the third-largest company in the global chocolate confectionery market, with sales of more than $12 billion. The company distributes in more than 170 countries and is known for brands including Tic Tac breath mints, Ferrero Rocher hazelnut chocolates, Nutella Hazelnut Spread and Fannie May chocolates.
Via — CSP Daily News
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