Why Kellogg Just Sold a Smorgasbord of Beloved BrandsFrom cookies to fruit snacks and pie crusts, the consumer-goods giant just divested some of its biggest products.
Here’s what investors need to know.
Steve Symington (TMFSymington)
Apr 3, 2019 at 3:35PM
In today’s ever-evolving consumer-goods landscape, it’s hard to overstate the importance of building recognizable brands. But on Monday, Kellogg (NYSE:K) announced a deal to pare its industry leadership in that area, selling a significant slice of its snacking business to global confectionary company Ferrero Group for $1.3 billion in cash.
More specifically, Kellogg will divest brands (and their respective production facilities) including Keebler, Mother’s, Murray’s, Famous Amos, and cookies manufactured for the Girl Scouts, as well as all of its fruit snacks, pie crusts, and ice-cream cone businesses.
Together, this enviable portfolio achieved net sales of almost $900 million last year — a meaningful chunk of its $13.5 billion in total 2018 sales — generating an operating profit of $75 million.
This raises the question: Why was Kellogg willing to part with those products in the first place?…
FINISH : Why Kellogg Just Sold a Smorgasbord of Beloved Brands
When Steve brought these cookies home I have to say that I was shocked that the maple cremes were in fact vegan. The ginger snaps I assumed were and of course they were. But the maple cremes? Wow, now this is nice I thought.
And I was not disappointed. Although the ginger snaps were like most others – better than some, not as good as one particular brand , but then that’s that particular brand’s specialty.
It’s the maple creme that I was most impressed with. Although my mother home-made most of her cookies, every now and then on pay-day, she’d buy a big package of vanilla and chocolate creams. I had no idea that this style could or was being made vegan.
Needless to say, it didn’t take us long to finish off the box. The maple flavor and design of the maple leaf is what sent this simple cookie into the stratosphere. Me being from New England of course made it somehow nostalgic. I liked that part too.
Thank you to Earth Fare for carrying these great cookies. But also a big thank you to whomever actually makes them. You all did a splendid job!
The Girl Scouts of America (and the world) should pick up the maple cremes. And add them to their line of vegan cookies. Yes, definitely.
I was a Brownie and a Girl Scout. I sold cookies. I could sell this maple creme easy peasy.
It’s Girl Scout Cookie time – and vegans can enjoy them too!
Yes, I was a Brownie and Girl Scout.
Peanut Butter Patties
Cranberry Citrus Crisps
Girl Scouts sell 5 Animal-Free cookie varieties – 4 are made on equipment that also processes cookies containing milk, and 1 is certified vegan (Thin Mints – my favorite).
Check out their website for further nutritional information, where to buy and lots more…