In recent news it was announced that Kellogg will buy the chip brand, Pringles, for $2.7 billion.
Originally, the conglomerate Procter & Gamble (P & G) was interested in selling its business to Diamond Foods, but fell through after complications with Diamond’s accounts. This will make this the world's second-biggest snack manufacturer after PepsiCo's Frito-Lay.
Kellogg’s is known for making our favorite frozen waffle brand (Eggo) and cereals such as Special K. A spokesperson from Kellogg’s said “this deal will make it the second biggest player in the global snacks business.”
Pringles known for their delicious chips in a variety of flavors is sold in over 140 countries and has annual sales of $1.5 billion (USD). The company decided to join forces at the perfect time when the popularity for snacking on the go is growing globally, particularly in booming markets like China and India.
"When you have people moving to the cities and becoming urbanized, they're less likely to eat foods they grow themselves,” said Tom Graves, an analyst who follows Kellogg’s. “There’s a bigger opportunity to sell packaged foods.”
Kellogg expects to complete the Pringles transition by June 30.
