Corporate Profiles - 2024 - 86

COMPANY overview
Kellanova
I
Snack maker stays focused amid pending
acquisition by Mars
n less than a year, Kellanova's post-Kellogg
Co. course veered from venturing on its own
as a major player in the snack market globally
to a combination in which the company would be
part of a global snacking giant.
Chicago-based Kellanova in mid-August agreed
to be acquired by Mars Inc. in a $35.9 billion deal.
The transaction would bring Kellanova's line of
crackers, salty snacks, bars and breakfast products
- including the Pringles, Cheez-It, Pop-Tarts, Rice
Krispies Treats, NutriGrain, RxBar and Eggo brands
- into the fold of the Mars Snacking business,
known for its candy and chocolate brands.
The companies expect the acquisition - slated
Chairman, CEO and president -
Steve Cahillane
to take publicly held Kellanova private into familyowned
Mars - to close in the 2025 first half pending
shareholder and regulatory approvals and other
closing conditions.
" Kellanova has been on a transformation journey
to become the world's best snacking company,
and this opportunity to join Mars enables us to accelerate
the realization of our full potential and our
vision, " said Steve Cahillane, chairman, president
and chief executive officer of Kellanova. " We are
excited for Kellanova's next chapter as part of Mars,
which will bring together both companies' worldclass
talent and capabilities. "
Kellanova became a possible acquisition target
after the October 2023 split of The Kellogg Co.
into two companies, seen as a way to unlock the
86 \ October 2024
Kellogg snack business' growth potential. At the
time, Kellanova (global snacking, international
cereal and noodles, plant-based foods and North
American frozen food) accounted for about 85%
of Kellogg's business, with the remaining WK Kellogg
business (North American cereal) representing
15%.
Together, Kellanova and Mars would form a
global company with annual revenue of more than
$63 billion. Kellanova's 2023 net sales topped
$13 billion, and the company has a presence in
180 markets globally. Other Kellanova brands
that would join Mars' portfolio include Kellogg's
Club, Kellogg's Grahams, Carr's and Zesta (crackers);
Town House (crackers, flatbread, pita snacks);
Toasteds (crackers and flatbread); Austin (sandwich
crackers); MorningStar Farms (plant-based foods);
Pure Organic (fruit snacks); and Special K (cereal)
in North America, plus the Kellogg's international
cereal business.
On its own, Kellanova has focused on driving
product innovation, including new flavors, packaging
and form factors and more consumer convenience.
The company, too, is working to boost postKellogg
margins, spur growth in global and emerging
markets, increase marketing and promotions,
expand its retail channel presence, and sharpen
operational and supply chain efficiency.
" We have a plethora of innovations launching
across every one of the regions this year, ranging
from limited editions to new flavors to amplified
wellness credentials to entirely new food platforms, "
Cahillane said in a fiscal 2024 secondquarter
conference call. " In the second half, we will
be launching Pringles Mingles (puffed snacks) in
North America, our first out-of-the-can launch in
the United States in over 15 years. In late Q3, we
will be introducing Cheez-It to Europe with a big
launch in the UK. "
Kellanova also is adjusting to a thriftier consumer.
" We've returned to full commercial activity,
with our stepped-up innovation reaching shelves
in the second quarter, " Cahillane said. " Delighting
consumers is never more important than it is right
now, and we now have our full plan in the marketplace. "
CP
Kellanova net income
in millions
2023
$951
2022
$960
2021
Source: Kellanova
$1,488
Kellanova net sales
in millions
2023
$13,122
2022
$12,653
2021
Source: Kellanova
$11,747
Kellanova share price
$40
$52
$64
$76
$88
HIGH =
Sept. 4, 2024 = $80.26
LOW =
Oct. 12, 2023 = $46.84
Sept. 4, 2024 = $80.26
Sept. Nov.
2023
Jan.
2024
March May
Source: New York Stock Exchange
KELLANOVA
July
Sept.
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Corporate Profiles - 2024

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