The company behind snack drawer staples like Skittles and M&M’s is paying a pretty penny to add some salt to its portfolio.
What happened: Mars is buying Pringles and Cheez-It maker Kellanova for US$36 billion, a deal that will expand and future-proof its sweet treat empire. Kellanova has bucked recent slumps across the food industry, beating expectations last quarter with $3.2 billion in sales.
Why it matters: When it comes to the food sector, the savoury snacks category is one to watch. More consumers are replacing sit-down meals with frequent snacking, and tastes are increasingly skewing salty over sweet. That’s where Mars is looking to cash in.
- Canadians, who are some of the world’s biggest snackers, consumed 6% more salty snacks last year than in 2019, while sweet snack consumption was down 3.4%.
- With a portfolio filled with sweets, adding some tried and true salty snack brands could put Mars in the right place to capitalize on consumers' shifting tastes.
Big picture: Mars has also scooped up Kind and Nature's Bakery, two healthier snack-bar makers, as the rise of popular weight loss drugs like Ozempic threatens to derail demand for indulgences like candy and chocolate.—LA