Blog: Kellogg's ambitious move for Pringles
Dean Best | 15 February 2012
In a deal that raised eyebrows, Kellogg has agreed to buy Pringles for US$2.7bn.
The US cereal giant believes Pringles will bolster its snacks business at home and abroad, adding to a stable of crackers and cereal bars in the US but also giving it access to the Asian snacks market and giving it more scale in Europe and Latin America. And investors seemed to approve of the deal, with Kellogg's shares up over 5%.
However, as we report today, challenges lie ahead for Kellogg both within its prospective new business and its core operations. Pringles' sales have suffered in some markets in recent months; in PepsiCo, the company will be up against a competitor with seven of the other top ten savoury snacks brands and one that is looking to bounce back from a bruising year; and the Frosties maker is operating in very challenging cereal markets on both sides of the Atlantic.
Danone completed its US$12.5bn acquisition of WhiteWave Foods this week. The move will roughly double Danone's presence in North America, where WhiteWave is a top four dairy player. ...
Premier Foods plc revealed today (28 March) it has secured a deal with its pension scheme trustees that will see the UK food maker reduce its pension burden....
Hain Celestial, under the scrutiny of the investment community in recent months and facing some challenges in its domestic market, has announced another shuffling of its management pack....
FrieslandCampina, which today served up higher profits but lower sales for 2016, is ready to offload the last non-dairy business owned by the Dutch cooperative giant....
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