INDUSTRY NEWS


Ferrero to acquire WK Kellogg Co in $3.1 billion deal


The Ferrero Group has agreed to acquire WK Kellogg Co for $23.00 per share in cash, valuing the company at $3.1 billion. The deal includes WK Kellogg Co’s portfolio of iconic cereal brands sold across the U.S., Canada, and the Caribbean and supports Ferrero’s strategy to grow its presence in North America. Ferrero, known for brands like


Nutella®, Kinder®, and Ferrero Rocher®, sees the acquisition as a way to expand into more consumption occasions. The deal will bring household names such as Frosted Flakes®, Froot Loops®, Special K®, and Rice Krispies® into its portfolio. Ferrero currently employs over 14,000 people in North America. The companies share similar


family-business roots and community values. Battle Creek, MI, will remain the headquarters for Ferrero’s North America cereal operations. The transaction has been unanimously approved by WK Kellogg Co’s board and is expected to close in the second half of 2025, pending shareholder and regulatory approval. WK Kellogg Co also announced


preliminary Q2 2025 results, expecting net sales between $610–$615 million and adjusted EBITDA between $43–$48 million. Final results will be released August 5, 2025.


Barry Callebaut faces chocolate and cocoa volume slump


Barry Callebaut reported sharp declines in chocolate and cocoa sales volumes for the first nine months of its 2024/25 fiscal year, even as revenues surged. Chocolate volumes fell 5.1%, and cocoa dropped 11.3%—with a 22.6% plunge in cocoa in Q3 alone—contributing to a 6.3% overall group volume decline. The downturn coincides


with historic cocoa price hikes. Average cocoa bean prices soared 43% year-over-year, peaking at GBP 9,425 per tonne before settling at GBP 6,453 by May 31, 2025. In response, Barry Callebaut prioritised higher-margin segments and cut cocoa sales in lower-return markets. The company said customer pushback on price hikes caused further short- term B2B disruption. The Global Chocolate division


also underperformed the wider chocolate market, with volumes falling 5.1% compared to a 3.0% market drop. Q3 was especially


tough, with chocolate volumes down 6.2%. Regional results varied. Latin America posted strong chocolate growth of 8.3%, driven by innovation. AMEA saw slight growth (+0.5%), though Q3 showed declines in China and the South Pacific. North America dropped 5.8%, deepening to -12.3% in Q3 due to tariff-related uncertainties. Western Europe fell 6.8%, hit by SKU reductions and high cocoa costs. Despite lower volumes,


sales revenue jumped 56.7% in local currencies (49.5% in CHF) to CHF 10.95 billion, thanks to a cost-plus pricing model. However, CEO Peter Feld warned of continued volume pressure as end- consumer price increases strain customers. The company now expects a


~7% full-year volume decline but anticipates a mid to high single-digit EBIT increase.


Ferrara enters into discussions to


acquire CPK Group A European holding company of Ferrara Candy Company has entered exclusive talks to acquire CPK Group (“CPK”), a French candy and chocolate manufacturer, from global investment group Eurazeo. Ferrara is affiliated with the Ferrero Group. The proposed transaction, subject to regulatory approvals and employee consultations, is expected to close in Q4 2025. The acquisition aims to


combine CPK’s strong presence in the European confectionery market with Ferrara’s extensive sugar confections portfolio, including brands like NERDS®, Jelly Belly®, and SweeTARTS®. CPK would continue operating from France to serve French and broader European markets. Founded in 2017 through


the acquisition of 14 brands from Mondelez and merged in 2018 with Lamy Lutti, CPK


owns well-known brands including Carambar, Lutti, Krema, Michoko, Poulain, and Terry’s. The group is active in three main segments: candy, milk chocolate, and French chocolate. “CPK is a great portfolio of


candy and chocolate brands well loved by the French and European consumer,” said Marco Capurso, CEO of Ferrara Candy Company. “We are honoured to be the possible future owner of this company and to work with its talented team and beloved brands.” CPK’s 900+ employees and


French production facilities in Bondues, Saint-Genest, Strasbourg, and Vichy would become part of Ferrara through the transaction.


JULY 2025 • KENNEDY’S CONFECTION • 7


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