Snickers Maker Mars in Talks To Buy Eggo’s Kellanova

Packaged food giant Mars, whose candy brands include M&M’s and Snickers, is reportedly in talks to buy Kellanova, formerly known as Kellogg Company and the maker of food products such as Cheez-It, Eggo, and Pringles. This acquisition would create one of the biggest-ever mergers in the packaged food sector.

Reuters reported that Kellanova has a market value of approximately $27 billion, including debt. The website Benzinga adds, “Kellanova manufactures products in 21 countries and markets them in over 180 countries. Following its separation from WK Kellogg last year, Kellanova retained a portfolio that includes snacks like Pop-Tarts and Rice Krispies Treats, frozen breakfast foods such as Morningstar Farms and Eggo, and an international cereal division.”

“We believe that K’s portfolio of popular snack brands will fit well with Mars’ and help them expand scale in international markets,” TD Cowen analyst Robert Moskow said, as reported by XM.

Last October, Kellanova, which “made up the global snacking business of Kellogg,” according to Reuters, divested WK Kellogg, its slow-growing North American cereal division.

Snickers maker Mars explores acquisition of Kellanova, sources say https://t.co/i1KJ07H1SF pic.twitter.com/vs7koZ51u9

— Reuters (@Reuters) August 4, 2024

Meanwhile, in April 2024, Snickers came under fire after an ad campaign promoting the candy bar. Airplane passengers were encouraged to eat the treat to satisfy their hunger until they reached their destination. However, the ad caught the attention of the Living Allergic website, which took issue with the promotion in support of those who travel with food allergies.

While most airplanes cannot guarantee allergen-free airspace, the website believes that encouraging the delivery of peanut-based treats on board the plane when an allergic person could be nearby is irresponsible. Food allergy nonprofit FARE’s CEO Sung Poblete, PhD, stated on the website, “An airplane already represents a heightened risk for food allergy patients.”

“FARE urges Mars to abandon this campaign, so that you don’t further endanger the lives of the more than 33 million people in the U.S. with the disease of food allergy,” Poblete concluded. 

This proposed packaged food deal piggybacks on the 2023 acquisition by J.M. Smucker of Hostess Brands for $5.6 billion. CNBC reported the deal included Hostess’ snacking cakes business and Hostess’ debt of around $900 million.