Nutella's Parent Company Just Bought Famous Amos And Keebler For $1.3 Billion And The Possibilities Are Endless
Kellogg is dropping Keebler, Famous Amos, and other notable snack brands. The food manufacturer is selling several subsidiaries to Ferrero, the Italian sweets company known for its beloved chocolate-hazelnut spread, Nutella. We're sensing a major collab in the near future.
According to ABC News, the sale, which is expected to close in July 2019, is costing Ferrero $1.3 billion. And while to us mere mortals that may seem like a lot, the price tag is considerably less than what Kellogg originally paid 17 years prior-like $2.6 billion cheaper. Sweet deal, huh? The brand's value has continued declined as a result of the clean eating craze, the outlet adds. Consumers are reportedly skipping the Fudge Stripes in favor of products with a healthier reputation.
The Keebler purchase isn't a first for Ferrero. In fact, the company has made two high-profile bids in the past two years: Ferrara Candy Co. and Nestle's U.S. candy business, CNBC reports. They're now the proud owners of Butterfinger, SweeTarts, Crunch, and more. The company will also take over six of Kellogg's U.S. manufacturing plants.
For their part, Kellogg made the decision to scale back on its portfolio and re-focus attention on Pringles, Cheez-Its, and Rice Krispie Treats. According to CNBC, company shares declined nearly 11 percent in 2018.
"This divestiture is yet another action we have taken to reshape and focus our portfolio, which will lead to reduced complexity, more targeted investment, and better growth," Kellogg CEO Steve Cahillane said: "Divesting these great brands wasn’t an easy decision, but we are pleased that they are transitioning to an outstanding company with a portfolio in which they will receive the focus and resources to grow."
('You Might Also Like',)
