Blog: Kellogg welcomes Pringles to the fold
Michelle Russell | 1 June 2012
The just-food blog appears to have transformed itself into the just-Kellogg blog this week as we bring you a third round of news on the cereal giant.
In what should be our final blog on Kellogg for this week, the US firm has confirmed the conclusion of its US$2.7bn acquisition of Pringles from Procter & Gamble in a move that will almost triple the size of its international snacks business.
First announced in February, the deal marks the latest stage in Kellogg's strategy to expand its global footprint in the snack market. Pringles will sit alongside brands such as Cheez-It and Keebler, and is now Kellogg's second largest brand after Special K by sales.
Speaking at CAGNY in February, Paul Norman, president of Kellogg's international operations, said the deal will be a "game-changer" for the company. In Europe in particular, the addition of Pringles will triple the size of Kellogg's snacks business.
The company has certainly been looking to overcome the difficulties that have hit the European division of late. In April, internal operating profit from the unit dropped almost 20% in the first quarter and Norman has taken control of Kellogg's business in Europe.
While UB certainly lacks Pringles' global presence, an acquisition of the United Biscuits snacks unit would certainly strengthen Kellogg's position in the UK and fit with the group's aim to become "a truly global cereal and snacks company".
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