Talk about a sweet (and salty) deal!
👆Continues the trend of focusing on strengths for growth in CPG M&A.
It's official:
Mars will be acquiring Kellanova for $35.9B per the statement on Mars.com.
The combined brand portfolios will give Mars substantially greater presence in snacking and confectionary as well as granola/cereal bars.
They are building on a solid foundation with equally strong addition:
This is less than a year after Kellogg Co. split and only a few months since Kellanova ramped up their commercial activities from merchandising to pack size to a feature movies to forecast an organic 3% lift in sales this year.
Brands have been optimizing their portfolios, adding brands to their focus categories while ditching those that aren't delivering:
The J.M. Smucker Co. sold Crisco (B&G Foods) and several pet brands to Post Consumer Brands along with other sales while acquiring Hostess Brands.
B&G Foods Inc. picked up Crisco from is considering divesting Green Giant after sales dropped 16.9%
Post has also acquired some cereal brands, combined with their pet purchases contributed a 23% sales lift in Q2.
Having a greater presence in their target categories helps brands hold and/or gain their share, especially private label.
The consolidated power and budgets make it more difficult for emerging brands to compete.
Makes it especially important that:
1) use social & in-store to build brand/community and inspire/add value
2) ensure packaging both pops on shelf AND is easy for consumers to read
3) leverage retailer programs for increased discovery & trial via secondary locations, flyers, loyalty program points etc
4) use discounts and rebates to drive sales
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Sources: Food Business News, Food Dive, Mars, Refrigerated & Frozen Foods Magazine, Strategy Online
#CPG #foodandbeverage #confectionary #petfood #snacks #acquisition
Consumer Insights / Innovation
6moSuper insightful presentation, well done Damaris Boisne!