Ferrero Plans Multibillion-Dollar Purchase of Beloved Kellogg Brand
In a strategic move to diversify and strengthen its presence in the US and global food markets, the Ferrero Group has announced its acquisition of WK Kellogg Co for $3.1 billion. This deal marks a significant step beyond Ferrero’s traditional portfolio centered on chocolates and sweets, as the company ventures into the ready-to-eat cereal sector[1][3][4].
The acquisition includes the manufacturing, marketing, and distribution of WK Kellogg’s famous cereal portfolio, which includes iconic brands like Frosted Flakes, Froot Loops, Rice Krispies, and Kashi[1]. This move is part of Ferrero’s broader strategic effort, initiated under Giovanni Ferrero’s leadership since 2015, to grow both organically and inorganically through targeted acquisitions that expand their product range and geographic footprint[1][4].
The deal, confirmed on July 10, 20XX, is a key milestone in The Ferrero Group’s journey to expand its presence in North America. The company already has several well-established brands in North America, including Ferrero Rocher, Nutella, Kinder, Tic Tac, Butterfinger, Keebler, Famous Amos, Jelly Belly, NERDS, Trolli, Blue Bunny, Bomb Pop, and Halo Top[2].
The acquisition of WK Kellogg Co is expected to contribute to over 10% sales increase in 2025 and further boost Ferrero’s turnover, which has risen from $11 billion in 2015 to over $20 billion recently[1][4]. Key features of the strategy as revealed by the WK Kellogg purchase include broadening the product portfolio, expanding operational presence in North America, improving manufacturing and distribution efficiency, mitigating volatility risks, and building scale and revenue growth[1][2][3][4][5].
Meanwhile, WK Kellogg Co, which can trace its roots to 1894 when it was founded by W.K. Kellogg who invented Corn Flakes, has announced its preliminary second quarter net sales for 2025. The company expects its net sales to fall between $610 million to $615 million[6]. The headquarters for North American cereal operations of Ferrero will remain in Battle Creek, where WK Kellogg Co's historic production hub is located[3][5].
The Ferrero Group, which began as a pastry shop in Alba, Italy, in 1946, is still owned by members of the Ferrero family[7]. With this acquisition, Ferrero’s brands are now sold in more than 170 countries[8].
Elsewhere, Mars Inc has announced its plans to acquire Kellanova, the plant-based business of The Kellogg Co, for an undisclosed sum. The deal for Mars' acquisition of Kellanova is expected to clear U.S. regulatory hurdles and close by the end of 2025[9].
References: 1. Ferrero Acquires WK Kellogg Cereal Business for $3.1 Billion 2. Ferrero Expands into Cereal Market with $3.1 Billion Kellogg Deal 3. Ferrero to Acquire WK Kellogg Cereal Business for $3.1 Billion 4. Ferrero’s Acquisition of WK Kellogg Co: A Strategic Move into Cereals 5. Ferrero to Acquire WK Kellogg Cereal Business, Keeping Headquarters in Battle Creek 6. WK Kellogg Co. Reports Preliminary Second Quarter 2025 Net Sales 7. Ferrero Group 8. Ferrero Group Expands into North America with $3.1 Billion Acquisition of WK Kellogg Co 9. Mars to Buy Kellanova, Kellogg's Plant-Based Business, for Undisclosed Sum
- The acquisition of WK Kellogg Co by Ferrero Group signifies a shift in their business strategy, as they move beyond their traditional focus on finance within the food-and-drink industry and expand their portfolio to include ready-to-eat cereals.
- With the acquisition of WK Kellogg Co, Ferrero Group's strategic efforts aim not only to boost their sales and turnover but also to strengthen their presence in the lifestyle sector, specifically in the North American market.
