Italian candy and food giant Ferrero has acquired cereal maker WK Kellogg for $3.1 billion, marking a major milestone in its decade-long campaign to evolve beyond European chocolate treats and turn it into a global powerhouse in the US. Under executive chairman Giovanni Ferrero’s leadership, the company has expanded through big acquisitions in the US and now boasts over 21 companies across nine countries.
Ferrero, who took over as CEO after his father Michele Ferrero’s death in 2015, has focused on diversifying from its core confectionery business. The firm has nearly doubled revenues to $20.4 billion and EBITDA to $3 billion since 2015. Ferrero is now worth an estimated $41.2 billion, making him the sixth richest person in Europe and the 36th globally.
The WK Kellogg deal is set to turbocharge Ferrero’s growth in the US, where it has made at least eight acquisitions since 2017. The acquisition brings brands like Froot Loops and Corn Flakes under the Ferrero umbrella and could grow sales by over 10%. Analysts praise the move as a strategic one, diversifying Ferrero beyond its core business to include WK’s domestic cereal mix.
With this deal, Ferrero is now poised to surpass Mars’ snacking business in revenue. However, challenges lie ahead, including tariffs, US health secretary Robert F. Kennedy Jr.’s crusade against artificial food dyes, and surging cocoa prices. Ferrero is working to diversify its supply of key ingredients and has invested $340,000 in research grants to make hazelnut farming more efficient.
Ferrero’s strategy to expand beyond chocolate treats was first outlined by Giovanni in 2018, who predicted a phase of consolidation that would leave a small number of key players jostling for control. The company now owns an ever larger size of the pie, with Ferrero leading the pack. With this deal, Giovanni is closer to making good on his promise, solidifying Ferrero’s position as a global food powerhouse in the US.
Source: https://www.forbes.com/sites/giacomotognini/2025/07/11/meet-the-italian-billionaire-behind-ferreros-giovanni-ferrero-froot-loops-nutella-31-billion-deal-for-kellogg