Going full paleo?... Kellogg is cleansing its home: For $1.3B, Italian sweets legend Ferrero beat out Twinkie icon Hostess Brands in a multi-month bidding battle for the Kellogg's dessert. The winnings include elf-powered Keebler, Famous Amos, fruit snacks, and even Girl Scout cookies (#SaveTheSamoas).
Cookies need love, too... And that's what Ferrero does — It turns around tired candy brands with marketing love. It recently bought some candy bars from Nestlé for $1B and already reintroduced a "Better Butterfinger" (with bigger peanuts 👌). Kellogg's hadn't been giving its older candy brands the attention they needed, and it shows:
- $4.4B = The 2001 price Kellogg paid for Keebler.
- $900M = The 2018 total sales for Keebler + all the other brands Kellogg's just sold.
Unhealthy isn't totally unhealthy... Kellogg's stock is down 11% in the last year as consumer tastes shift, and its sugar-fueled cereals lose out to chia pudding. But the calorie-infused brands that Kellogg has treated with marketing money are actually doing just fine.
- Cheez-Its (sales up 5% since last year)
- Pringles (up 7%)
- Rice Krispies (up 15%)