Breakfast cereal could use a lucky charm. U.S. sales of the colorfully packaged morning staple have been in a decades-long decline. Now comes news that Italian confectioner Ferrero Group plans to purchase the American company that makes Kellogg's Corn Flakes, Froot Loops, Rice Krispies and other familiar brands. Market research company Nielsen IQ says Americans bought more than 13% fewer boxes of cereal in the last year than they did during the comparable period of 2021. Concerns about food processing and sugar intake have been factors in dimming some people's enthusiasm for ready-to-eat cereal. Consumers also have expanded their idea of what breakfast can be.
By DEE-ANN DURBIN and MICHELLE CHAPMAN AP Business Writers
Italian confectioner Ferrero, known for brands like Nutella and Kinder, is buying the century-old U.S. cereal company WK Kellogg in a deal valued at approximately $3.1 billion. Kellogg was founded in Battle Creek, Michigan, in 1906. It makes Froot Loops, Special K, Frosted Flakes and Rice Krispies. Kellogg has been struggling with falling U.S. cereal consumption as consumers opt for protein bars and other products. But industry watchers say its large distribution network and relations with grocers are appealing to Ferrero. The deal still needs the approval of WK Kellogg's shareholders.
