How would Nutella taste in a bowl of cereal?
Ferrero, the Italy-based maker of the popular Nutella hazelnut-chocolate spread, announced this week that it plans to by U.S.-based WK Kellogg, maker of iconic breakfast cereals, including Kellogg’s Frosted Flakes.
A press release from the company said that it had entered into a “definitive agreement under which Ferrero has agreed to acquire WK Kellogg Co, for $23.00 per share in cash, representing a total enterprise value of $3.1 billion.” It also said the acquisition includes the manufacturing, marketing and distribution of WK Kellogg Co’s breakfast cereals, from Frosted Flakes to Wheaties and Froot Loops.
“I am thrilled to welcome WK Kellogg Co to the Ferrero Group. This is more than just an acquisition – it represents the coming together of two companies, each with a proud legacy and generations of loyal consumers,” said Giovanni Ferrero, Executive Chairman of the Ferrero Group.
“Over recent years, Ferrero has expanded its presence in North America, bringing together our well-known brands from around the world with local jewels rooted in the U.S. Today's news is a key milestone in that journey, giving us confidence in the opportunities ahead.”
Kellogg’s roots go back to 1894, when W.K. Kellogg invented corn flakes. He founded the company 12 years later in Battle Creek, Mich. Per the company website, his discovery of toasted flakes ceral “shaped an entire industry.”
Ferraro also has a long history. Brothers Pietro and Giovanni Ferrero from Piedmont, Italy began working at the family’s small pastry shop in the 1940s. Like Kellogg, Pietro Ferrero loved to experiment with food, while Giovanni handled the commercial end of the business.
“Pietro was the driving force behind the innovation and creativity that would later give his son, Michele Ferrero, the platform to launch the Ferrero company we know today,” according to the company. “Pietro was renowned for his love of experimenting – he was affectionately known as ‘the scientist’ by his friends, always working to find new flavors and textures to surprise and delight at the pastry shop in Alba, Italy.”
Early on, Fererro developed Giandujot, a predecessor to Nutella. According to the Nutella website, it was created to fill a need left after World War II, when cocoa was scarce. To stretch the limited supple, they created a sweet paste made with mostly hazelnuts and sugar. Next came SuperCrema, a creamy version of the paste, in 1951. In 1964 the Nutella cream spread debuted.
Kellogg became an independent public company in 2023. Earlier this year, Kellogg reported that its net sales decreased 6.2% year-over-year, that organic net sales decreased 5.6% year-over-year and that reported net income decreased 45.5% year-over-year.
“Despite the lower than expected first quarter performance which resulted in revising our 2025 outlook, we continue to make great progress on our strategic priorities, including the supply chain modernization initiative," said Gary Pilnick, chairman and CEO of Kellogg, said in May.
This week, he said that “joining Ferrero will provide WK Kellogg Co with greater resources and more flexibility to grow our iconic brands in this competitive and dynamic market,” and added that, “as a family-owned private company with values in line with our founder W.K. Kellogg, Ferrero provides a great home for our people and has a track record of supporting the communities in which it operates.”