Three global food giants have reportedly entered bids for Kellogg‘s North American cookies and snacks assets put up for sale late last year as the US manufacturer seeks to focus resources on its “core businesses”.
Breakfast cereal producer Kellogg announced in November it planned to offload a clutch of snacks assets such as the Keebler, Famous Amos and Stretch Island brands. Chairman and chief executive Steve Cahillane said at the time Kellogg needed to “make strategic choices about our business and these brands have had difficulty competing for resources and investments within our portfolio”.
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Italian confectionery firm Ferrero, which is also reportedly among bidders for the international business of Campbell Soup Co., has placed bids for the assets, along with US food companies Hostess Brands and B&G Foods, according to CNBC, quoting people familiar with the situation.
The news channel said the assets could fetch around US$1.5bn. Private-equity firms are also competing for the cookie brands, CNBC’s sources said.
When contacted by just-food, a Kellogg spokesperson said: “We previously announced that we are exploring a potential divestiture of our cookies, fruit snacks, ice-cream cones and pie shells businesses, however we don’t comment on rumour or speculation.”
just-food has also approached Nutella spreads and Tic Tac sweets maker Ferrero, and B&G, which owns the snacks brand TrueNorth, for comment.
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By GlobalDataIn November, CEO Cahillane said the asset sale would “enable the company to bring a sharper focus to its core businesses”.
