&w=3840&q=100)
Nutella maker Ferrero to acquire WK Kellogg private in $3.1 bn deal
AP Washington
Ferrero, known for brands like Nutella and Butterfinger, is taking cereal company WK Kellogg private in a deal valued at approximately $3.1 billion.
The Ferrero Group will pay $23 for each Kellogg share. The transaction includes the manufacturing, marketing and distribution of WK Kellogg Co's portfolio of breakfast cereals across the United States, Canada and the Caribbean.
Kellogg's brands include Fruit Loops, Special K, Frosted Flakes and Rice Krispies.
The deal, 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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
7 days ago
- Time of India
Nutella gets ‘well-known trademark' status in India: Delhi High Court rules in Ferrero's favour
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel The Delhi High Court has declared Italy's leading chocolate producers and confectioner Ferrero International SpA 's 'Nutella' a well-known trademark under Indian Trade Marks Act, 1999, considering its goodwill and reputation across the globe, including court said that Ferrero International SpA , part of the world-renowned Ferrero Group, and its counterparts have been continuously and uninterruptedly using Nutella since 1946 and have valid and subsisting registration thereof from Saurabh Banerjee in an exparte order said that Ferrero's Nutella trademark has completed 50 years of its presence in the Indian market in 2014. 'By virtue of its long-standing use, extensive marketing, and unique trade dress, 'NUTELLA' has become synonymous to a thick creamy hazelnut cocoa plaintiffs have been able to cross the threshold,' the court said, adding that the mark has also been recognised by WIPO and the International Trademark Italian company has successfully met the statutory test under the 1999 Trade Marks Act for well-known mark recognition, noting Nutella's presence globally since judge noted that the Italian company has spent Rs three crore, Rs seven crore and Rs 16 crores from FY 2020-21, 2021-22 and 2022-23, respectively, on promotions. Besides,it has gross sales figures of Rs 233 crore, Rs 145 crore and Rs 106 crore for the financial years 2020-21, 2021-22 and 2022-23 respectively. "This leaves no shadow of doubt that plaintiffs are well established in the markets all across the globe and are not mere fly-by-night operators. Their registered trademarks Nutella and its variants are recognised all across the globe, including but not limited to India," said Justice Banerjee direction came on a trademark infringement suit filed by Ferrero SpA and its affiliates against Thane-based MB Enterprises which engaged in manufacturing, supplying, distributing and selling large quantities of counterfeit Nutella products bearing identical trademarks, labels, and trade dress to counterfeiting was uncovered during a 2021 raid by the Maharashtra Food and Drug Administration (FDA), which seized nearly 10 lakh units and packaging materials imitating Nutella court noted that counterfeiting posed serious public health risks - particularly to children - and involved clear mala fide intent to deceive consumers. 'If not stopped, the same can cause serious public harm…The aspect of due diligence and circumspection is necessary,' the order stated, while permanently restraining M.B. Enterprises, its partners, proprietors from manufacturing, packaging, supplying, distributing, selling and dealing in any manner whatsoever with counterfeit Nutella products or any product similar to the petitioner's trademark."... if the defendant is allowed to continue under such circumstances, it is likely to result in causing utter confusion, lead to deception and cause damage amongst the members of the public at large as also to the long well-established goodwill and reputation of the plaintiffs as well," the order stated, asking M.B. Enterprises to pay Rs 30 lakh as damages to Ferrero and costs and special costs of Rs two lakh to Delhi High Court Bar Association Lawyers Social Security and Welfare Fund.
Mint
29-07-2025
- Mint
Delhi HC declares Nutella a ‘well-known trademark' in Ferrero filed infringement case
The Delhi High Court has officially declared Nutella, the popular hazelnut cocoa spread, as a 'well-known trademark', observing that the brand enjoys widespread recognition not just in India but across the globe. 'This leaves no shadow of doubt that plaintiffs are well established in the markets all across the globe and are not mere fly-by-night operators. Their registered trademarks 'NUTELLA'/ and its variants are recognised all across the globe, including but not limited to India,' LiveLaw quoted Justice Saurabh Banerjee in his ruling. The Court also took into account that Nutella had already been recognised as a 'well-known trademark' by both the World Intellectual Property Organization (WIPO) and the International Trademark Association. The judgment came in response to a suit filed by Ferrero SpA, the Italian confectionery company behind Nutella, against a company accused of trademark infringement. According to the allegations reported by LiveLaw, the defendant was engaged in the manufacture, supply, and sale of counterfeit Nutella products that bore identical trademarks, labels, and trade dress to that of Ferrero's original. Ruling in Ferrero's favour, the Court expressed concern over the public health risks posed by such counterfeit goods, particularly because they are edible products consumed by a wide demographic, including children.
Time of India
23-07-2025
- Time of India
Breakfast cereal sales declined for decades before Kellogg's sale to Italian company
Breakfast cereal could use a lucky charm. U.S. sales of the colorfully packaged morning staple have been in a decades-long decline, a trend back in the spotlight with news that Italian confectioner Ferrero Group plans to purchase WK Kellogg, maker of Corn Flakes, Froot Loops, Rice Krispies and other familiar brands. Except for a brief period during the coronavirus pandemic, when many workers were home and had time to sit down with a bowl of cereal and milk, sales of cold cereal have steadily fallen for at least 25 years, experts say. In the 52 weeks ending July 3, 2021, Americans bought nearly 2.5 billion boxes of cereal, according to market research company Nielsen IQ. In the same period this year, the number was down more than 13% to 2.1 billion. Cereal has been struggling for multiple reasons. The rise of more portable options like Nutri-Grain bars and Clif Bars – which both went on sale in the early 1990s – made it easier for consumers to grab breakfast on the go. Concerns about food processing and sugar intake have also dimmed some consumers' enthusiasm for cereals. One cup of Lucky Charms contains 24% of a consumer's daily recommended intake of sugar, for example. 'Cereal finds it really hard to get out from underneath that,' said Tom Rees, global insight manager for staple foods at the consulting company Euromonitor. 'It can't escape the fact that it doesn't look like a natural food. You have to create it and form it.' Rees noted that for decades, cereal manufacturers focused on adding vitamins and minerals to build cereal's health credentials. But consumers now are looking for simplified ingredient lists. Artificial dyes — like the petroleum-based colors that brighten Froot Loops — have also come under fire. Last fall, dozens of people rallied outside WK Kellogg's Battle Creek, Michigan, headquarters demanding that it remove artificial dyes from its cereals. Kellogg and General Mills — another major U.S. cereal maker — have since pledged to phase out artificial dyes. Add to that, consumers are expanding their idea of what breakfast can be. Yogurt and shakes have replaced the traditional bacon and eggs. Kenton Barello, a vice president at the market research firm YouGov, said his polling shows that Generation Z consumers, who were born between 1997 and 2007, eat more vegetables for breakfast than other generations. Barello said YouGov's polling also shows that members of Gen Z are less likely to eat breakfast but still buy ready-to-eat cereal, suggesting they're eating it as a snack or for other meals. 'With younger generations, there are differences in their relationship with food and these eating moments,' Barello said. 'They are going about breakfast in a different way than Millennials, Gen X and Baby Boomers.' Cereal's struggles are part of what led to the breakup of the Kellogg Company. In 2023, the century-old company that put Battle Creek, Michigan, on the map split into two companies. Kellanova took popular snack brands like Cheez-Its, Pringles and Pop-Tarts as well as international cereals, and WK Kellogg made cereals for the U.S., Canada and the Caribbean. In 2024, M&M's maker Mars Inc. announced a plan to buy Kellanova for more than $30 billion. That plan has cleared U.S. regulators but is still awaiting regulatory approval in Europe. WK Kellogg was left to try to rejuvenate the cereal business. The sale of WK Kellogg to Ferrero doesn't mean supermarket cereal aisles are at risk of extinction. Packaged food companies have options for turning around their soggy cereal sales, Rees said. He thinks Kellogg's Mashups line, which mixed brands like Frosted Flakes and Froot Loops into one box, appeal to younger consumers, who tend to like interesting flavor combinations. The market may also have a fragmented future, according to Rees. Companies may have to accept that younger buyers want a sweet-and-spicy cereal while older buyers might want a Keto-friendly option. 'The future might be realizing that the era of 'This brand will serve everybody' isn't going to happen,' Rees said. Julia Mills, a food analyst with the consulting company Mintel, thinks the shrinking population of children in the U.S. gives cereal makers the opportunity to shift to more sophisticated flavors and packaging. Cereal could be positioned as a fancy topping for yogurt, for example, or a fiber-rich food that can improve gut health. Some niche cereal brands , like high-fiber Poop Like a Champion cereal and high-protein, zero-sugar Magic Spoon, are already doing that. But legacy brands say they shouldn't be counted out. Jeffrey Harmening, the chairman and chief executive officer of Cheerios maker General Mills, said his company considered trying to acquire Magic Spoon. Instead, it made high-protein versions of Cheerios, which now outsells Magic Spoon. 'The key to longer term is, honestly, is giving consumers more of what they want,' Harmening said during a conference call with investors in March.
