Snap, crackle, sale: Nutella maker Ferrero plans to buy WK Kellogg for
$3 billion
[July 11, 2025] By
DEE-ANN DURBIN and MICHELLE CHAPMAN
Italian confectioner Ferrero, known for brands like Nutella and Kinder,
is buying the century-old U.S. cereal company WK Kellogg in an effort to
expand its North American sales.
The Ferrero Group said Thursday it will pay $23 for each Kellogg share,
or approximately $3.1 billion. The transaction includes WK Kellogg Co.'s
six manufacturing plants and the marketing and distribution of its
breakfast cereals across the United States, Canada and the Caribbean.
WK Kellogg's shares were up 31% in mid-afternoon trading on Thursday.
Kellogg was founded in Battle Creek, Michigan, in 1906 after its founder
accidentally figured out how to make flaked cereal while he was
experimenting with granola. Kellogg still makes Corn Flakes, as well as
Froot Loops, Special K, Frosted Flakes, Rice Krispies and other cereals.
Kellogg now has four U.S. plants, which are located in Michigan,
Pennsylvania, Tennessee and Nebraska. It also has a plant in Mexico and
a plant in Canada. The company has around 3,000 employees.
The current company was formed in 2023, when Kellogg snack brands like
Cheez-Its and Pringles were spun into a separate company called
Kellanova. M&M's maker Mars Inc. announced last year that it planned to
buy Kellanova in a deal worth nearly $30 billion.
Ferrero Group, a privately held, family-owned company founded in Italy
in 1946, has been trying to expand its U.S. footprint. In 2018 it bought
Nestle's U.S. candy brands, including Butterfinger, Nerds and SweeTarts.
In 2022, it bought Wells Enterprises, the maker of ice cream brands like
Blue Bunny and Halo Top.
“Over recent years, Ferrero has expanded its presence in North America,
bringing together our well-known brands from around the world with local
jewels rooted in the U.S. Today’s news is a key milestone in that
journey, giving us confidence in the opportunities ahead," Ferrero
Executive Chairman Giovanni Ferrero said in a statement.
Gary Pilnick, WK Kellogg's chairman and CEO, said the combination would
give Kellogg resources to grow its brands and “explore opportunities
beyond cereal.” Pilnick also said that Ferrero has a track record of
supporting the communities in which it operates.
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This is a shelf of Kellogg's Frosted Flakes cereal at a market in
Homestead, Pa., on Monday, Feb. 24, 2025. (AP Photo/Gene J. Puskar,
File)
 Kellogg has been struggling with a
long-term decline in U.S. cereal consumption as consumers turned to
protein bars, shakes and other breakfast items. Cereal sales got a
bump during the coronavirus pandemic as more families stayed home,
but sales continued to decline after the pandemic eased.
At the start of July, U.S. cold cereal sales were
down 6% compared to the same period in 2022, according to market
research company Nielsen IQ. Kellogg's net sales fell 2% to $2.7
billion in 2024.
Brad Haller, a senior partner for mergers and acquisitions at West
Monroe, said Kellogg's large distribution network and relationships
with grocery chains in North America is appealing to Ferrero because
it would help the European company negotiate pricing and positioning
for its products.
The purchase also helps Ferraro expand beyond snacks, chocolate and
sweets and into a meal category, Haller said. But the company also
may wind up cutting Kellogg brands or shutting down manufacturing
plants, he said.
“As Americans, these brands are iconic and beloved by us, but a
European company buying these wouldn’t have the same nostalgia,”
Haller said.
Kellogg has had other issues. A nearly three-month strike by workers
at all its U.S. cereal plants in late 2021 hurt sales. And last
fall, dozens of people rallied outside the company's Battle Creek
headquarters demanding that Kellogg remove artificial dyes from its
cereals.
Earlier this year, Kellogg said it was reformulating cereals sold to
schools to remove artificial dyes and will not include them in any
new products starting in January.
Ferrero's acquisition, which still needs approval from Kellogg
shareholders, is expected to close in the second half of the year.
Once the transaction is complete, Kellogg’s stock will no longer
trade on the New York Stock Exchange and the company will become a
Ferrero subsidiary.
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