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Yahoo
21 hours ago
- Business
- Yahoo
Nutella maker Ferrero to buy WK Kellogg for $3.1B
This story was originally published on Food Dive. To receive daily news and insights, subscribe to our free daily Food Dive newsletter. Ferrero is buying cereal giant WK Kellogg for $3.1 billion as the Nutella maker further grows its footprint in the U.S. The acquisition would give the Luxembourg-based company a deeper North American presence in everything from cereal and ice cream to protein bars, cookies and confections. WK Kellogg became an independent company in October 2023 after Kellogg split up its snacking and cereal operations. Kellogg's snacks business, which includes Cheez-It and Pringles, was renamed Kellanova. It is being purchased by candy giant Mars Wrigley for $36 billion. Once known in the U.S. for its Nutella spread, golden-wrapped Ferrero Rochers and minty Tic Tacs, Ferrero has been on an acquisition spree to build its portfolio and connect with consumers across more eating occasions. In 2018, it spent $2.8 billion to purchase Nestlé's U.S. chocolate business in a deal that added more than 20 American candy brands to its portfolio, including Butterfinger, Baby Ruth and 100 Grand. The sweets and snacks maker then bought Kellogg's cookies and fruit snacks business for $1.3 billion a year later, which gave Ferrero an entry into cookies with the Keebler and Famous Amos brands. In 2022, Ferrero purchased ice cream maker Wells Enterprises, adding Blue Bunny and Halo Top to its portfolio. The addition of WK Kellogg provides Ferrero with a seat at the breakfast table through cereals such as Frosted Flakes, Froot Loops and Rice Krispies. Ferrero committed to invest in and grow WK Kellogg Co's iconic brands following the acquisition, the company said. "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.,' Giovanni Ferrero, executive chairman of the Ferrero, said in a statement. 'Today's news is a key milestone in that journey, giving us confidence in the opportunities ahead." After the transaction closes, Ferrero said WK Kellogg's home in Battle Creek, Michigan, will remain a "core location" and be its headquarters for North American cereal. The deal comes as Ferrero has posted upbeat results despite headwinds facing CPG companies around the world. During its most recent fiscal year, Ferrero generated revenue of 18.4 billion euros, or about $21.5 billion, marking an increase of 8.9% from the prior period. The U.S. was a region of strength for its business. For WK Kellogg, the purchase would mark an end to its short time as a standalone company that has been mired by challenges. WK Kellogg has grappled with a continued slowdown in cereal consumption amid a pullback in consumer spending. More recently, it's become a focal point of the FDA's push to encourage companies to remove artificial colors from their foods. Net sales at WK Kellogg fell 2% in 2024 and are forecast to decline between 2% and 3% this year, according to the company. Erin Lash, sector director of consumer equity research for Morningstar, said the tie-up will generate several benefits for Ferrero beyond expanding its portfolio. Given the size of the $12 billion North American cereal aisle, adding WK Kellogg 'stands to buoy its bargaining power with retailers.' Lash added that even though WK Kellogg's portfolio is unlikely to post meaningful growth, there are opportunities for Ferrero "to rationalize, modernize, and automate its supply chain network' that should yield resources to further invest in the consolidated business. Recommended Reading WK Kellogg focusing on cereal before turning to M&A, CEO says Sign in to access your portfolio
Miami Herald
2 days ago
- Business
- Miami Herald
Ferrero to buy WK Kellogg in candy-meets-cereal deal
Ferrero, the Italian candy maker, has agreed to acquire WK Kellogg, the American cereal giant, in a deal valued at $3.1 billion, the companies announced Thursday. The takeover would combine Ferrero, a family-owned company that makes Tic Tacs, Ferrero Rocher candies and Nutella spreads, with the producer of Frosted Flakes, Froot Loops, Rice Krispies and other cereals. It represents Ferrero's latest push to grow its business in North America following a series of acquisitions in recent years, including buying Nestlé's U.S. confectionery business in 2018. The deal would expand Ferrero's presence in North America and help the company move beyond its candy and snack offerings, Lapo Civiletti, the CEO of the Italian group, said in a statement. Shares of WK Kellogg surged 30% in early trading, rising to just below the acquisition price agreed to by the companies. Merger activity in the food sector has been slow this year as President Donald Trump's volatile trade policy has created uncertainty for company executives and unsettled consumers, according to investment banking firm Capstone Partners. Shoppers, faced with nearly two years of significant price increases for cereals, snacks and other foods at grocery stores, have either cut back or switched to less expensive, private-label store brands. WK Kellogg reported a slump in sales in its first quarter this year because of the 'weaker than expected consumption trends.' The company said sales for the full year would be lower than previously expected, falling as much as 3%. In preliminary results released Thursday, WK Kellogg said it expects sales for the second quarter, which ended June 28, to land between $610 million and $615 million, a decline from the same period last year. The combination with Ferrero would give WK Kellogg 'greater resources and more flexibility to grow our iconic brands in this competitive and dynamic market,' Gary Pilnick, CEO of WK Kellogg, said in a statement. WK Kellogg was created in 2023 when the Kellogg Co. spun it off as an independent company. The larger remaining business, which focused on snacks such as Pringles and Cheez-It, was renamed Kellanova. Mars, the company behind M&M's and Snickers, agreed last year to acquire Kellanova in a deal valued at $35.9 billion. Last month, the Federal Trade Commission approved that deal -- a signal that the Trump administration's antitrust regulators might take a less aggressive approach to merger enforcement than their Biden administration predecessors. The timing of Ferrero's latest U.S. acquisition is 'likely based on a struggling share price for WK Kellogg and the FTC's approval without conditions of Mars' acquisition of Kellanova,' said Brad Haller, a senior partner at West Monroe. The Kellanova deal is still facing antitrust review in Europe. This isn't the first deal between Ferrero and Kellogg. Before the spinoff, Ferrero in 2019 acquired the Kellogg Co.'s Keebler cookie brand, Famous Amos cookies, the Kellogg fruit snacks business, and Little Brownie Bakers, the supplier of Girl Scouts cookies. Ferrero's current deal for WK Kellogg is 'relatively small,' meaning it is less likely to face significant regulatory hurdles, said Philip Howard, a professor at Michigan State University, who studies concentration in the food system. 'Since Ferrero is dominant in candy but not breakfast cereal, it probably won't be challenged by regulators in the U.S. or EU,' he added. This article originally appeared in The New York Times. Copyright 2025
Time of India
2 days ago
- Business
- Time of India
Nutella-maker Ferrero to buy Kellogg's business for $3.1 billion
Italian candy maker Ferrero has agreed to acquire American cereal giant WK Kellogg in a deal valued at $3.1 billion, the companies announced Thursday. The transaction includes the manufacturing, marketing and distribution of Kellogg's portfolio of breakfast cereals across the United States, Canada and the Caribbean, marking Ferrero's push to grow its business in North America. WK Kellogg's shares were up 31% in morning trading on Thursday. WK Kellogg's brands have been struggling with a long-term decline in US cereal consumption as consumers turned to protein bars, shakes and other breakfast items. Cereal sales got a bump during the pandemic as more families stayed home, but sales continued to decline after the pandemic eased. Nutella-maker Ferrero to buy Kellogg's biz for $3.1 billion Ferrero, the Italian candy maker, has agreed to acquire WK Kellogg, the American cereal giant, in a deal valued at $3.1 billion, the companies announced on Thursday. The takeover would combine Ferrero, a family-owned company that makes Tic Tacs, Ferrero Rocher candies and Nutella spreads, with the producer of Frosted Flakes, Froot Loops, Rice Krispies and other cereals. It represents Ferrero's latest push to grow its business in North America. Shares of WK Kellogg surged 30% in early trading, rising to just below the acquisition price agreed to by the companies. Merger activity in the food sector has been slow this year as US President Donald Trump 's volatile trade policy has created uncertainty for company executives and unsettled consumers, investment banking firm Capstone Partners said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo Shoppers, faced with nearly two years of price increases for cereals, snacks and other foods at grocery stores, have either cut back or switched to less expensive, private-label store brands. WK Kellogg reported a slump in sales in its first quarter this year because of the "weaker than expected consumption trends". The company said that sales for the full year would be lower than previously expected, falling as much as 3%. The combination with Ferrero would give WK Kellogg "greater resources and more flexibility to grow our iconic brands in this competitive and dynamic market", WK Kellogg CEO Gary Pilnick said. WK Kellogg was created in 2023 when the Kellogg Company spun it off as an independent company. The larger remaining business, which focused on snacks like Pringles and Cheez-It, was renamed Kellanova. Mars, the company behind M&M's and Snickers, agreed last year to acquire Kellanova in a deal valued at $35.9 billion. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Boston Globe
2 days ago
- Business
- Boston Globe
Moderna COVID shot for kids cleared in face of RFK Jr. criticism
Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up FOOTWEAR Advertisement Nike to replace Converse CEO in bid to reverse sales slump The Converse and Nike logos are displayed in a store window in Bangkok, Thailand, in 2017. Brent Lewin/Bloomberg Nike Inc. is replacing the chief executive of its Converse subsidiary as it looks to reverse a lengthy sales slump for the struggling sneaker brand. Aaron Cain, a vice president and general manager of Nike's global men's business based at headquarters in Beaverton, Ore., will take the top job at Converse in Boston, according to an internal memo seen by Bloomberg News. Cain, a 21-year Nike veteran, has held roles in the company's sportswear divisions in North America, Europe, and Asia. He takes over for Jared Carver, who's exiting Converse after two years as CEO. 'The time is right for the next chapter of the brand's evolution,' the memo said. Nike confirmed the move. The two executives will work together through the end of the month to facilitate the transition. Converse has struggled to revive sales in recent years, with revenue falling in each of the last eight straight quarters. Sales plummeted 26 percent in its most recent quarter, leaving management scrambling to map a path back to growth. — BLOOMBERG NEWS Advertisement FOOD Ferrero to buy WK Kellogg in candy-meets-cereal deal The takeover would combine Ferrero, a family-owned company that makes Tic Tacs, Ferrero Rocher candies and Nutella spreads, with the producer of Frosted Flakes, Froot Loops, Rice Krispies and other cereals. Scott Olson/Getty Ferrero, the Italian candy maker, has agreed to acquire WK Kellogg, the American cereal giant, in a deal valued at $3.1 billion, the companies announced Thursday. The takeover would combine Ferrero, a family-owned company that makes Tic Tacs, Ferrero Rocher candies, and Nutella spreads, with the producer of Frosted Flakes, Froot Loops, Rice Krispies and other cereals. It represents Ferrero's latest push to grow its business in North America following a series of acquisitions in recent years, including buying Nestlé's US confectionary business in 2018. The deal would expand Ferrero's presence in North America and help the company move beyond its candy and snack offerings, Lapo Civiletti, the CEO of the Italian group, said in a statement. — NEW YORK TIMES AUTOMOTIVE Tesla sets date for shareholders meeting after protests A Tesla dealership in Colma, Calif. David Paul Morris/Bloomberg Tesla said Thursday that it would hold a shareholders meeting Nov. 6, nearly four months after what is required under Texas law. The maker of electric cars made the announcement in a regulatory filing, a day after a group of state treasurers, comptrollers, and shareholder representatives sent a letter to the company expressing 'deep concern regarding the lack of timely notice about the date and format of Tesla's 2025 annual general meeting.' Texas, where Tesla is incorporated, requires companies listed on a stock exchange to hold annual meetings within 13 months after the previous meeting. In Tesla's case, that deadline is Sunday. It is unclear whether Tesla will face any penalties for holding a late meeting. In a document, dated Wednesday, filed with the Securities and Exchange Commission, Tesla did not give a reason for delaying the meeting. — NEW YORK TIMES Advertisement ONLINE CRIME AI-generated images of child sexual abuse are flooding the internet Over the past two years, new AI technologies have made it easier for criminals to create explicit images and videos of children. Now, researchers at organizations including the Internet Watch Foundation and the National Center for Missing & Exploited Children are warning of a surge of new material this year that is nearly indistinguishable from actual abuse. New data released Thursday from the Internet Watch Foundation, a British nonprofit that investigates and collects reports of child sexual abuse imagery, identified 1,286 AI-generated videos of child sexual abuse so far this year globally, compared with just two in the first half of 2024. The videos have become smoother and more detailed, the organization's analysts said, because of improvements in the technology and collaboration among groups on hard-to-reach parts of the internet called the dark web to produce them. The rise of lifelike videos adds to an explosion of AI-produced child sexual abuse material, or CSAM. In the United States, the National Center for Missing & Exploited Children said it had received 485,000 reports of AI-generated CSAM, including stills and videos, in the first half of the year, compared with 67,000 for all of 2024. While still a tiny fraction of the total amount of child sexual abuse material found online, which tallied reports in the millions, the police have been inundated with requests to investigate AI-generated images, taking away from their pursuit of those engaging in child abuse. — NEW YORK TIMES Advertisement FAMILY SERVICES Most US adults say child care costs are a 'major problem,' a new AP-NORC poll finds Students at Little Legacy Village Preschool in New York on April 3. ELIAS WILLIAMS/NYT Americans overwhelmingly view the cost of child care as a significant issue, and most support initiatives to offer free or low-cost day care and to require employers to provide paid family leave for parents of babies, according to a new poll. But they're divided over how to solve the problem and what role the government should have in that solution. About three-quarters of US adults see child care costs as a 'major problem,' but only about half say helping working families pay for child care should be a 'high priority' for the federal government, according to the June poll from The Associated Press-NORC Center for Public Affairs Research. The latest congressional package of tax cuts included tax credits and benefits for parents and businesses that assist employees with child care. Those changes have been praised by some, while others say millions of families at lower income levels wouldn't get the full credit and would be affected by cuts in Medicaid and food stamps. — ASSOCIATED PRESS AUTOMOTIVE Ford recalls over 850,000 cars in the US due to potential fuel pump failure Ford is recalling more than 850,000 of its cars across the United States because the low-pressure fuel pump inside the vehicles may fail — and potentially cause an engine stall while driving, increasing crash risks. The recall covers a wide range of Ford and Lincoln-branded vehicles made in recent model years. That includes certain Ford Broncos, Explorers, and F-150s, as well as Lincoln Aviators and Navigators, documents published this week by the National Highway Traffic Safety Administration note. Ford plans to send out notification letters to affected owners starting July 14, to warn of safety risks related to potential fuel pump failure. But a remedy is still 'under development,' the NHTSA's recall report notes. — ASSOCIATED PRESS Advertisement TOURISM The Bad Bunny bump: Star's residency boosts Puerto Rican economy Bad Bunny performs at TD Garden in Boston in 2024. Ben Stas for The Boston Globe/The Boston Globe Puerto Rico's summers are a time when tourism slows, hurricanes threaten, and power outages increase. But this year's doldrums have an unlikely bright spot: Bad Bunny. The superstar's 30-date concert run at the Coliseo de Puerto Rico that starts July 11 has led to a once-in-a-generation surge in flights and hotel bookings that's giving the economy a trap-flavored kick. Discover Puerto Rico, the island's tourism promotion agency, says it's expecting 600,000 visitors during the period — about twice the average for those months — with the concerts pumping an estimated $181 million into the local economy. The agency has no record of a single event that brought this many people to the island, not even Old San Juan's famed annual San Sebastián festival. World tours are common in an era of globalized pop. And they can have a real impact on host cities, with Harvard Business Review estimating that Taylor Swift's blockbuster Eras Tour poured $10 billion into local economies across several continents. But what Bad Bunny is doing — staying put — is unprecedented outside of Las Vegas residencies, said Jorge Pérez, whose company runs the 18,500-seat Coliseo. — BLOOMBERG NEWS
Irish Examiner
04-07-2025
- Business
- Irish Examiner
Tic Tac maker Ferrero Ireland says overtime claim would cost €1.1m
The maker of iconic sweets Tic Tacs, confectionery giant Ferrero Ireland, has told the Labour Court that an overtime pay demand by craft workers would result in an additional €1.1m cost and it was not in a position to agree to the change. At the Labour Court, the Cork-based Ferrero Ireland Ltd said the company has lost orders and has had to action a headcount reduction. In the case, 24 craft workers - represented by the Connect union - are seeking that overtime be paid at shift rate rather than basic rate. In its argument before the Labour Court, Ferrero Ireland stated that it is not in a financial position to implement the change requested by the union as this would significantly increase labour costs across the site at a time of decreased demand. The company - represented by Ibec at the Labour Court - argued 'that they cannot jeopardise the overall site by bringing about significant costs'. The most recent accounts filed by Ferrero Ireland Ltd show that pre-tax profits increased by 27% to €3m as revenues rose by 13% from €35.5m to €39.9m in the 12 months to the end of August last. The company paid out a €2m dividend last year and this followed a €6m dividend in the prior year. Average numbers employed last year stood at 317. Staff costs totalled €19.2m. On behalf of Ferrero Ireland, Ibec stated that while only Connect are making the claim there is another union on site who have placed the company on notice that they will be seeking this change as part of the next collective agreement. Ferrero Ireland stated that its review of what the change would cost showed it would add an additional overtime cost of €1.1m, based on the current quantum of overtime. In response, Connect submitted that it is the industry norm that overtime is paid at shift rate of pay and not basic rate. Connect stated that Ferrero Ireland has sought to rely on a no cost increasing clause in the overall pay agreement despite having agreed to this issue being processed outside of the pay agreement. Connect stated that it is their belief that paying overtime at shift rate is standard practice in the industry and they cited various examples from the food and drinks sector who are applying it. The union also stated that having agreed to separate out the issue of shift payment it was not acceptable that the employer was now trying to hide behind a clause in the agreement they had sought to extract this claim from. Connect stated that overtime within the plant is at the discretion of management so they can control the cost to the business. In response, deputy chair at the Labour Court, Louise O'Donnell recommended that the parties have further local engagement on the issue and identify possible savings that could be off set against the cost of the change, with a view to finalising this issue as part of negotiations for the next pay round.
