Ferrero to Buy WK Kellogg Amid Slowing Cereal Demand
Ferrero to buy WK Kellogg in a $3.1 billion acquisition, signaling a major shift in the U.S. food industry. WK Kellogg, struggling with weak consumer demand and inflation, will soon become part of Ferrero’s growing empire.
Announced on Thursday, this deal is Ferrero’s largest in recent years. It includes iconic brands like Froot Loops, Frosted Flakes, and Special K. The move comes as cereal brands see slowed sales due to rising costs and changing consumer habits.
A Strategic Move to Strengthen Ferrero’s U.S. Presence
Ferrero is offering $23 per share, a 31% premium on WK Kellogg’s last closing price. As a result, Kellogg’s shares rose over 30% in early trading. The deal is expected to close in the second half of 2025.
This acquisition adds to Ferrero’s aggressive expansion. The company already owns Nutella, Kinder, and Tic Tac. In 2018, it acquired Nestlé’s U.S. candy business for $2.8 billion.
Now with 14,000 employees and 22 plants across North America, Ferrero is deepening its footprint in the U.S. food market.
Changing Market Forces and Consumer Expectations
WK Kellogg’s sales outlook has weakened, with Q2 estimates falling below analysts’ projections. The company expects $610–$615 million in sales, lower than the $653 million expected.
This comes as other brands like PepsiCo, Kraft Heinz, and JM Smucker also face cautious consumer spending. Health trends and regulatory pressure, such as calls to eliminate synthetic dyes, are adding to the challenge.
While Cheez-It maker Kellanova is being eyed by Mars in a separate $36 billion deal, Ferrero’s acquisition signals its aim to dominate more categories.
With this purchase, Ferrero to buy WK Kellogg becomes more than a business move—it’s a sign of evolving global food power.
