Kellogg, which is the giant firm in the snack industry, recently announced their plans for getting out of the business for cookies for focusing more upon the cereal and snacks. Their most loved cookies assets, which included the Famous Amos, the Keebler, Mother’s, Murray’s as well as other cookies that were manufactured especially for the Girl Scouts of America in addition to their fruit brands are going to be sold to the Ferrero, well known for Nutella, for just over 1.3 Billion US Dollar.
The famous maker of cereals was actively looking to sale their cookie as well as fruit snack businesses since the last year’s November in order to be able to focus on their “core” areas of the company, these core areas included their salty and healthy snacks collection.
The company faced troubles as the reports suggests in the allocation of the required resources to these assets of the firm that was crucially important for competing in the increasingly crowded markets of cookies and sweets.
According to Kellogg’s CEO, Mr. Steve Cahillane: “Divesting these great brands wasn’t an easy decision,” He also added: “This divestiture is yet another action we have taken to reshape and focus our portfolio, which will lead to reduced complexity, more targeted investment, and better growth.”
Ferrero was originally founded in the Italian area in the year 1946 as a part of the family business. It then entered in the market of the United Stated in 1969 with their Tic Tacs.
According to the CEO of the Ferrero Group, Mr. Lapo Civiletti: “We are acquiring a portfolio of well-established brands that consumers love, with very strong market positions across their respective categories, allowing us to significantly diversify our portfolio and capitalize on exciting new growth opportunities in the world’s largest cookies market,”