This acquisition is one of the largest in the international food industry and brings iconic brands such as Cheez-It, Pop-Tarts, and Pringles under Mars’ roof.
The deal is seen as a strategic move by Mars to expand its position in the growing market of savory snacks. Mars has traditionally been stronger in confectionery and pet food, but with the acquisition of Kellanova, the company can significantly diversify its offerings. This provides Mars the opportunity to better cater to changing consumer taste preferences, which are increasingly leaning toward savory and healthy snacks.
Kellanova was only established last year after Kellogg’s decided to split its operations into two companies. While Kellanova retained the popular snack brands, the other entity, WK Kellogg Co., remained responsible for the less successful cereal product portfolio, such as Frosted Flakes and Froot Loops.
For American and European consumers, the acquisition means they can expect new product innovations. At the same time, the consolidation could lead to less competition and possibly higher prices. Particularly in the U.S. market, where both Mars and Kellanova hold strong positions, this could affect consumer choice.
Kellanova’s headquarters will remain in Chicago after the acquisition, while the company itself will be fully integrated into Mars’ snack division. The completion of the acquisition is expected in the first half of 2025.