Blog: Dean BestKellogg'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.

Kellogg moved to buy Pringles after Diamond Foods' deal to acquire the snacks brand was terminated in the wake of the accounting scandal at the company.

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.


BLOG

Do you get just-food's newsletters? You need to do something

If you receive just-food's newsletters, we have a message....

BLOG

UK consumers to cut back on fruit and veg - and point to Brexit, study says

Whatever your view on Brexit, a piece of research issued today (18 July) in the UK on fruit and veg consumption will likely unite more of you than last year's divisive vote....

BLOG

Cyber attack - another wake-up call for business

A month after an international cyber attack hit entities including the UK's National Health Service and Spanish telecoms giant Telefonica, another has caused havoc around the world, affecting business...

BLOG

A bad fortnight for self-regulation

Recent events in Canada, Brussels and the UK suggest the task of defending self-regulation as the best way to prevent the commercial activities by food companies from exacerbating childhood obesity is...

just-food homepage



Forgot your password?