Mars agrees to acquire Kellanova

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TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and a big shakeup in the snacks industry.

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00:00I'm Conway Gittins reporting from the New York Stock Exchange. Here's what we're watching on the street today.
00:04The trend of slower inflation gains remained intact in July. Consumer prices rose 0.2% as expected,
00:12and over the past 12 months, prices were up 2.9%. Excluding volatile food and energy prices,
00:18the so-called core rate posted its smallest yearly gain since April 2021.
00:24In other news, a $35.9 billion snacks deal is grabbing the spotlight. Mars Candy Company is buying
00:31Kelanova, the non-cereal unit spun off from Kellogg's, in 2023. The merger brings iconic brands like
00:38Snickers, M&M's, Mars Bar, Rice Krispie Treats, Pringles, and Cheez-It all under one corporate umbrella.
00:45Food outside the snack aisle are also part of the deal, including Pop-Tarts, Eggo, and the vegan food line
00:51Morning Star Farms. The CEO of Mars said in a statement, quote,
00:56We have a substantial opportunity for Mars to further develop a sustainable snacking business that is fit for the future.
01:03We will honor the heritage and innovation behind Kelanova's incredible snacking and food brands,
01:09while combining our respective strengths to deliver more choice and innovation to consumers and customers.
01:16The merger comes at a pivotal moment for the food industry. With fewer dollars to spend due to inflation,
01:21consumers are picking and choosing where and how to spend their money. In addition,
01:27some consumers are shying away from candies, cookies, and snacks in favor of healthier options.
01:32Noticing that trend a few years ago, Mars snapped up the maker of Kind Bars and then Nature's Bakery.
01:38Mars, which is still family-owned, raked in $50 billion in sales last year, while Kelanova rang up $13 billion.
01:46That'll do it for your daily briefing from the New York Stock Exchange. I'm Conway Gittens with The Street.

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