Kellogg’s snaps-up Pringles
Steve’s breakdown: A lot can happen in a few months. We thought Diamond was buying this brand but in the end, it is Kellogg’s. Needless to say, Pringles has been ignored for months and could use a new agency now! BTW: The featured video is the only commercial on the brand site.
BATTLE CREEK, MI: Procter & Gamble has completed its $2.7 billion sale of Pringles to the Kellogg Co.
Kellogg, which gets most of its revenue from North America, is hoping the acquisition can help it expand into a global snacking company. Pringles chips, known for iconic tube packaging, are sold in more than 140 countries and produce two-thirds of their annual revenue overseas.
Kellogg CEO John Bryant said Thursday that buying Pringles gives the company a “truly global snack platform.”
P&G wanted to sell off the salty snack line, the last of its food businesses, to focus on its core household and consumer products. The brand reportedly had several suitors as it is recognized around the globe and generates roughly $1.5 billion in annual revenue.
The Cincinnati-based company initially planned to sell Pringles to San Francisco-based Diamond Foods Inc. for $2.3 billion, but the deal collapsed amid an accounting scandal at Diamond.
About 1,700 P&G employees work on the Pringles business worldwide, and about 150 are in Greater Cincinnati. The brand has $1.4 billion in global sales.
Kellogg swooped in and announced in February that it would buy Pringles in an all-cash deal. The Battle Creek, Mich.-based breakfast giant is best known for its lineup of sweet breakfast items, such as Frosted Flakes and Eggo frozen waffles. But its snack cupboard also includes Cheez-It and Keebler’s Club crackers.
P&G shares closed Thursday at $62.29, down three cents.