Breakfast is the most important meal of the day, and Giovanni Ferrero knows it.
Scion and Executive President of Ferrero Group, the company behind favorites like Nutella, Kinder and Ferrero Rocher, Ferrero announced plans in July to acquire WK Kellogg, manufacturer of Flakes of Frosted and Froot Loops, in an agreement worth $ 3.1 billion. The purchase will extend the presence of Ferrero in North America and will reduce its dependence on chocolate products in the increase in world cocoa prices.
It also gives an elevator of Ferrero Group against the change of consumer preferences while American buyers revolve towards low -cost stores and cereals at low cost or opt for healthier options.
Ferrero, grandson of the founders of the company and the richest man in Italy, has been part of an acquisition trip since he took unique control of the company after the death of his father, Michele, in 2015. He has since added at least 21 companies in nine countries to his portfolio.
Operating in more than 170 countries in total and managing some 35 brands, Ferrero Group declared 18.4 billion euros (around 21.5 billion dollars) of income during the financial year, up almost 9% compared to the previous period.
Kellogg has undergone a major restructuring. The brand, which is from 1894, when Will Keith Kellogg accidentally developed corn flakes, has shown resilience in navigation on changes in breakfast trends, the movement to replace artificial colors, and even a global refocusing on its image of health and well-being, Russell Zwanka, Director of the food marketing program and Western marketing partner Michigan University.
In 2023, the parent company separated its North American cereal activities, nicknamed WK Kellogg, from its world snack division, which was then sold in Mars, manufacturer of M&M and Skittles.
“When you think about breakfast, you think of Kellogg,” says Zwanka.
Married to two sons, Ferrero is a passionate cyclist, a philanthropist and the published author of Three Novels. At the head of the company established in Alba in 1946, the acquisition of WK Kellogg is a crown achievement.
“The addition of the Kellogg cereal portfolio to the Ferrero North American Mix allows synergies in marketing messages, transfer transfer opportunities – perhaps a Nutella Frosted Flakes? – And opens a whole new day piece for Ferrero, ”notes Zwanka. “Up [of that]Many customers use cereals like afternoon snack, where Ferrero is already playing with heavy brands. »»