The transaction encompasses WK Kellogg Co.’s six manufacturing plants across the United States, Canada, and the Caribbean, along with the marketing and distribution rights for its iconic breakfast cereals. WK Kellogg’s portfolio includes household staples such as Corn Flakes, Froot Loops, Special K, Frosted Flakes, and Rice Krispies. This acquisition provides Ferrero, a privately held, family-owned company founded in Italy in 1946, a direct entry into a major “meal category,” diversifying beyond its traditional focus on snacks and sweets.

This move follows a period of decline in U.S. cereal consumption, a challenge that WK Kellogg has faced as consumers increasingly opt for protein bars, shakes, and other breakfast alternatives. Despite a temporary bump during the pandemic, cold cereal sales were down 6% in early July compared to 2022, and Kellogg’s net sales fell 2% to $2.7 billion in 2024. WK Kellogg also grappled with a nearly three-month worker strike in 2021 and calls for removing artificial dyes from its cereals, leading to some reformulations.

For Ferrero, a key appeal of WK Kellogg lies in its extensive distribution network and established relationships with grocery chains across North America. This infrastructure is expected to significantly bolster Ferrero’s ability to negotiate pricing and positioning for its existing products, fostering greater market penetration. The acquisition marks another substantial step in Ferrero’s aggressive expansion strategy in the U.S., following its purchases of Nestle’s U.S. candy brands in 2018 and Wells Enterprises’ ice cream brands (Blue Bunny, Halo Top) in 2022.