Ferrero reportedly mulls buying WK Kellogg for US$3bn

The Italian candy manufacturer behind Ferrero Rocher and Nutella is reportedly striking a deal to acquire cereal brand WK Kellogg for around US$3 billion.

The acquisition could be announced as early as this week and values WK Kellogg at a substantial premium over its market value of US$1.5 billion, according to the Financial Times and Wall Street Journal. Meanwhile, there is no assurance that a deal will be finalised, and the timelines may be delayed.

This comes as the food sector confronts shifting consumer behaviours, particularly a shift toward healthier choices. The increased use of weight loss medications has compelled manufacturers, especially those in the sweets sector, to adapt their strategies, according to the Financial Times report. 

MARKETING-INTERACTIVE has reached out to Ferrero and WK Kellogg for a statement respectively. 

Founded in 1946, Ferrero has grown into one of the world's largest chocolate manufacturers with iconic brands including Ferrero Rocher, Nutella, Kinder Chocolate, and Tic Tac. 

In recent years, Ferrero has acquired Wells Enterprises, known for its Blue Bunny and other ice cream brands, and completed a US$2.8 billion deal to buy Nestlé's chocolate business in US. Ferrero currently operates 15 plants and warehouses across the US, Canada, and the Caribbean, employing over 5,100 individuals, according to its official website. 

Meanwhile, WK Kellogg is the owner of popular cereal brands such as Corn Flakes, Frosted Flakes, and Froot Loops. It was established in October 2023 following Kellogg's division into WK Kellogg and Kellanova (K), the latter of which manages snack brands such as Pringles and Pop-Tarts.

Don't miss: Kellogg splits into 3 businesses, shifts focus to snacks

At that time, Kellogg said that as independent companies, all three businesses would better focus on their strategic priorities, align financial targets with their markets, and enhance operational flexibility. This would allow for more effective resource allocation, improved growth prospects, and the development of unique corporate cultures based on Kellogg's values, providing rewarding career paths for employees.

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