Mars Finalizes Kellanova Acquisition
Following a more than year-long regulatory review, Mars and Kellanova have combined in one of the largest packaged food transactions since the 2015 Kraft-H.J. Heinz merger.
Under the new consolidated structure, Kellanova's billion-dollar brands — including Pringles, Cheez-It and Kellogg's — will fall under the Mars business, expanding a portfolio of brands that already includes Snickers, M&Ms, Twix, Dove, Skittles and Extra.
The $36 billion deal also expands the portfolio of Accelerator, a division of Mars Snacking, adding brands such as RXBAR, Nutri-Grain bars and Special K bars.
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“Today marks a transformative moment, and I’m excited to welcome Kellanova to Mars,” Andrew Clarke, global president of Mars Snacking, said in a statement. “United by more than a century of pioneering new categories and building iconic brands, Mars and Kellanova are joining forces to shape the future of snacking."
Mars initially announced the acquisition on Aug. 14, 2024, stating the move would increase consumer-centric innovation through digital capabilities and R&D, support progress on sustainability, strengthen distribution and double Mars Snacking's presence over the next 10 years.
Consumer Goods' Big M&A Push
The broader consumer goods industry is undergoing major consolidation and portfolio optimization. Earlier this year, The Ferrero Group, which manufactures such brands as Nutella, Keebler and Ferrero Rocher, announced it would acquire Kellanova's spun-off counterpart WK Kellogg Co. in a $3.1 billion deal.
That transaction will include manufacturing, marketing and distribution for the breakfast cereal portfolio across the U.S., Canada and the Caribbean, including brands Frosted Flakes, Froot Loops, Frosted Mini Wheats, Special K, Rice Krispies, Raisin Bran, Kashi, Bear Naked and others.
More recently, Kimberly-Clark said it seeks to purchase the business of global consumer health company Kenvue. The $48.7 billion transaction will expand Kimberly-Clark's product portfolio, bringing in health brands such as Tylenol, Band-Aid and Benadryl from Kenvue.
Other companies are in the midst of reviewing their portfolio optimization options. Coty, for example, looks to refocus on heritage and core strength, and will more closely integrate its prestige beauty and mass fragrance segments as part of a review of its $1.2 billion mass color cosmetics business.
Meanwhile, some companies are pursuing separation strategies. The Kraft Heinz Co. will include Global Taste Elevation Co. and North American Grocery Co. (formal names to be announced at a later date) to focus on shelf-stable meals and North American staples, respectively. Keurig Dr Pepper is acquiring JDE Peet’s, a global coffee manufacturer as part of its split strategy, which separates the beverage and coffee businesses.
