Confectionery giant Mars has announced a deal to acquire Kellanova, the maker of Pringles and Pop-Tarts, for nearly $36 billion (£28 billion). The companies have touted this as the largest snacking industry buyout of the year, and legal experts do not anticipate significant regulatory hurdles.
The acquisition comes at a time when cash-strapped consumers are increasingly opting for cheaper, own-brand snacks, according to market research firm Mintel. Additionally, there is a growing trend toward healthier snacking options in the UK.
Mars, known for its popular treats like Twix, Bounty, Milky Way, M&Ms, and Skittles, also offers healthier products through its Nature’s Bakery brand. Similarly, Kellanova, which was spun off from Kellogg’s in 2023, markets both indulgent and healthier snacks, including Nutri-Grain bars.
This deal surpasses Mars’ $23 billion acquisition of Wrigley in 2008 and is expected to be finalized in the first half of 2025. Kellanova will be integrated into Mars Snacking, led by Andrew Clarke and based in Chicago.
The backdrop for this acquisition includes rising food and drink prices in the UK, which increased by nearly a third between September 2021 and September 2023, according to the Institute for Fiscal Studies. Additionally, UK regulations are increasingly restricting the promotion of junk food in supermarkets to combat obesity and other health issues. From October 2025, “buy-one-get-one-free” offers on unhealthy foods will be banned in England, although major retailers like Tesco and Sainsbury’s have already begun phasing them out.
