Kellogg snaps up Pringles
The US cereal giant has moved to buy the Procter & Gamble global snacks brand after its prospective sale to Diamond Foods was called off.
The acquisition of Pringles is a step-change for Kellogg. However, the US cereals giant faces a formidable competitor in savoury snacks in PepsiCo, which has seven of the world's top ten brands and will be focused on rebounding after a challenging year. And Kellogg also faces tough markets in the US and Europe in its core cereals business.
Kellogg has today (15 February) emerged as the surprise buyer of global snacks brand Pringles after the planned sale to Diamond Foods was called off.
Procter & Gamble has revealed Pringles is attracting "considerable interest" as potential buyer Diamond Foods deals with the fall-out of an accounting scandal that led to the departure of its CEO and CFO.
US snack maker Diamond Foods has replaced its CEO and CFO after an internal investigation found the company had incorrectly accounted for payments to walnut growers.
US cereal giant Kellogg has warned the profits from its European operations could fall again this year amid the challenging economic environment on the Continent.
Kellogg said today (2 February) it had ended 2011 with a "strong" fourth quarter, in which profits jumped by a quarter, boosted by improved earnings in North America and Asia-Pacific.
Some of Diamond Foods' lustre has been wiped away by an announcement that its much-lauded purchase of Pringles has been delayed over an investigation into crop payments.
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