Listen to the article
Dive Brief:
Dive Insight:
Once known in the U.S. for its Nutella spread, golden-wrapped Ferrero Rochers and minty Tic Tacs, Ferrero has been on an acquisition spree to build its portfolio and connect with consumers across more eating occasions.
In 2018, it spent $2.8 billion to purchase Nestlé’s U.S. chocolate business in a deal that added more than 20 American candy brands to its portfolio, including Butterfinger, Baby Ruth and 100 Grand.
The sweets and snacks maker then bought Kellogg’s cookies and fruit snacks business for $1.3 billion a year later, which gave Ferrero an entry into cookies with the Keebler and Famous Amos brands. In 2022, Ferrero purchased ice cream maker Wells Enterprises, adding Blue Bunny and Halo Top to its portfolio.
The addition of WK Kellogg provides Ferrero with a seat at the breakfast table through cereals such as Frosted Flakes, Froot Loops and Rice Krispies. Ferrero committed to invest in and grow WK Kellogg Co’s iconic brands following the acquisition, the company said.
“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.,” Giovanni Ferrero, executive chairman of the Ferrero, said in a statement. “Today’s news is a key milestone in that journey, giving us confidence in the opportunities ahead.”
After the transaction closes, Ferrero said WK Kellogg’s home in Battle Creek, Michigan, will remain a “core location” and be its headquarters for North American cereal.
Please check back for updates on this developing story.