Mars Bids for Snack Giant Kellanova in $30 Billion Deal

Mars is reportedly in discussions to acquire snack maker Kellanova in a deal worth about $30 billion.

The purchase could come about “imminently,” The Wall Street Journal reported Monday (Aug. 5), citing unnamed sources. The acquisition would be among the biggest deals of 2024.

Kellanova was once part of Kellogg, which split into two companies last year: Kellanova, which sells brands such as Pop-Tarts, Eggo waffles and Pringles; and WK Kellogg focused on cereals.

Mars’ brands include M&Ms and Snickers. The company is also focusing on its pet food and pet care businesses. PYMNTS contacted Mars for comment but did not receive a reply.

The proposed deal comes as consumer packaged goods companies such as Kellanova grapple with declining sales, fueled by ongoing inflation, WSJ reported.

For example, PepsiCo, whose brands include the Frito-Lay line of snack foods, reported a slight dip in sales last month. CEO Ramon Laguarta noted on an earnings call that “the impacts of persistent inflationary pressures and higher borrowing costs over the last few years have resulted in tighter household financial conditions.”

Meanwhile, PYMNTS spoke earlier this year with Kellanova Chief Digital and Information Officer Lesley Salmon about her industry’s use of artificial intelligence and machine learning.

“AI and ML are revolutionizing many aspects of our business, from supply chain management to personalized marketing,” Salmon said. “Machine learning algorithms help us analyze vast amounts of data to optimize inventory management, demand forecasting and production planning. We are also using generative AI to enhance customer engagement through personalized recommendations based on consumer behavior and preferences.”

Salmon detailed an array of digital tools the company uses for everything from employee collaboration to personalized offers driven by data analytics to improving eCommerce conversions.

She said AI has added new capabilities to data analytics and has provided a continuum for the brand as it develops research on eating habits and continues to seek direct-to-customer opportunities.

According to Harvard Business Review, fewer than a quarter of brands in all categories added a D2C channel in 2023; 55% of those were in the CPG space.

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