Kellogg pins growth in snacking unit on Pringles, Cheez-It ahead of split

By: Trademagazin editor Date: 2023. 08. 14. 09:03

Kellogg said its new snacking company Kellanova will focus on growing Pringles into a $4 billion brand, while expanding others like Cheez-It and Pop-Tarts into international powerhouses.

At a conference with Wall Street investors analysts Wednesday, Kellogg’s CEO Steve Cahillane said the two brands will anchor the snacking spinoff Kellanova as it aims to grow its market share. Kellogg projects the snacking company will post net sales of between $13.4 million and $13.6 million in 2024 after the split occurs.

Cahillane said Pringles, which was acquired in 2012, has the ability to adapt and fit market demands, such as through flavor and packaging innovation. The chief executive said Pringles is not reaching its potential, with single-digit share of sales in most regions.

Kellanova also plans to expand its reach in other channels such as convenience and smaller stores by launching more small-pack items. Currently, 24% of Pringles are sold in these locations, according to the company.

The company said it plans to launch Cheez-It in a slew of new markets in the next three years — U.K., Ireland, Germany and Australia in 2024; France and Spain in 2025; and Japan in 2026. Cahillane said Kellanova plans to eventually grow the international presence for some of its other snacking brands.

The company said the plan for its snacking brands will further extend its runway for growth. Kellanova increased sales by roughly $3 billion between 2019 and 2022, at a compound annual growth rate of 9%, the company said in the presentation.

Food Dive