Packaged Facts’ Food & Beverage Research Manager Discusses Mars’ Agreement to Acquire Kellanova

Cleveland OH, August 15, 2024 – On August 14, Mars, a major privately held supplier of candy, sweet snacks, rice, and pet food, announced that there was an agreement in place to purchase Kellanova, a key global supplier of packaged salty snacks, frozen breakfast food, and plant-based foods.

The transaction will be valued at nearly $30 billion, as Mars has agreed to pay $85.50 per share of Kellanova. This purchase is expected to be completed in the first half of 2025. This deal, by family-controlled Mars, will take publicly traded Kellanova private.

According to Packaged Facts’ Food & Beverage Research Manager, Jennifer Mapes-Christ, “The purchase of Kellanova by Mars is part of the trend of Big Food getting even bigger as established and up-and-coming brands are rolling up offering greater advantages of scale in generating cost efficiencies, but also to have more leverage with retailers for prices and shelf space.”

While the packaged snack industry has been challenged by consumers trading down to private label options or forgoing snacks seen as optional when necessary meal elements are more costly, the snacking trend isn’t going anywhere. The February-March edition of the Packaged Facts National Online Consumer Survey showed that more than half of adult Gen Z and Millennial consumers snack at least once every day, with 28% reporting that they are snacking more than once every day.

Mapes-Christ points out, “One of the keys to success in the snacking industry is the right products and the right market positioning. For instance, better-for-you snack options are a growth area, especially with options that have the indulgent taste along with a functional nutritional benefit or that offer a unique or seasonal flavor.”

Still, different generations are seeking different things from their snacks. For instance, the Packaged Facts National Online Consumer Survey shows that most consumers are looking for enjoyment or an indulgent treat from their snacks, but that framing resonates significantly more with older consumers. In contrast, younger consumers are more moved to snack for energy or as an act of self-care compared to older consumers. Mapes-Christ notes, “This is a chance for Mars to expand their snacking portfolio and reach more consumers for more snacking purposes and occasions. Expect to see more innovations in Kellanova’s established brands under this combination.”

Additional analysis of opportunities and trends in Packaged Facts’ benchmark report Food Market Outlook 2024: Opportunities & Challenges With Pricing, Convenience, Sustainability & More, as well as topical coverage such as Consumer & Corporate Food Gifting, Keto & Paleo Consumers: High Protein/Low-Carb Diet Trends & Opportunities and Chocolate Candy.