Kellogg has this week made its first acquisition in the US for over four years, snapping up fledgling snack bar maker Pure Organic. The deal is similar to those made by a number of Kellogg's US packaged food peers in recent months as some of the big names in the industry try to adapt to changing consumer trends in the country. Dean Best reflects on the move.
In 2000, Kellogg moved to buy US group Kashi in a bid to expand into growing parts of the country's cereal category and help efforts in what the Special K maker called at the time "the rapidly growing natural foods marketplace". However, 15 years on, the acquisition can be held up as an example of how a food major buying an up-and-coming, fast-growing rival can go wrong. Kashi has struggled for growth in recent years but, speaking at this week's Consumer Analyst Group of New York conference this week, Kellogg set out its plans to revitalise the business.