On Jan. 22, 2019, CNBC reported that Hostess Brands, B&G Foods and Ferrero have placed first-round bids on Kellogg’s Keebler, Famous Amos and fruit snacks businesses with some private equity players interested in them as well. An insider close to the deal revealed to the company that the brands could be valued above $1.5 billion.
Renewing its focus on healthier products, Kellogg announced the sale of its cookie brands in 2018. Other brands up for sale include Murray and Mother’s cookies and Stretch Island fruit snacks.
Major industry players such as Campbell Soup, Kraft Heinz and General Mills are also selling off brands to boost profitability. Ferrero, Hostess and B&G have also expressed interest in these brands to expand their current portfolios.
Ferrero currently owns Ferrara Candy Company that makes Red Hots and Nestle’s US candy business. Hostess has been on the lookout for opportunities to expand its offerings and B&G currently owns former General Mills brand Green Giant and TreeHouse Foods’ McCann’s Irish oatmeal.