Kellogg to buy protein-bar maker RXBar in $600mn deal

By Laura Mullan
Kellogg Co. has revealed its plans to buy niche-protein bar company RXBAR for U$600mn, as the world’s largest cereal maker looks to expand its portfol...

Kellogg Co. has revealed its plans to buy niche-protein bar company RXBAR for U$600mn, as the world’s largest cereal maker looks to expand its portfolio of healthier food and tap into the millennial consumer market.

The move comes as big food manufacturers are tapping into new brands to offset the falling sales of sugary, processed products.

RELATED STORIES: 

RXBAR, which is owned by Chicago Co., will continue to operate independently after the deal but will benefit from Kellogg’s distribution, research and development capabilities, the company said in a statement.

“We won't compromise our values, " RXBAR co-Founder and Chief Executive Peter Rahal added.

Kellogg, like other food giants such as General Mills, Campbell’s Soup has been battling weak sales, with shares hitting their lowest prices in over two years last August.

Many consumers have turned away from Kellogg’s longtime staples such as Cornflakes and Special K, amid a growing consumer preference for fresher and healthier foods.

As the company has faced declining sales, Chief Executive Steven Callihane, who recently took over from John Bryant, is tasked with reinvigorating slumping sales in a turnaround bid.

In statement, he said: "With its strong millennial consumption and diversified channel presence including e-commerce, RXBAR is perfectly positioned to perform well against future food trends.”

RXBAR’S net sales are expected to be about US$120mn in 2017.

Share

Featured Articles

Unilever CEO Schumacher Lays out Plastics Roadmap

Unilever CEO Hein Schumacher sets out a roadmap to a Global Plastics Treaty, in wake of controversy that saw company criticised for watering down ESG goals

Ahold Delhaize Targets Sustainability & Omnichannel Goals

Multinational food business Ahold Delhaize prioritises sustainability and omnichannel innovation as part of its new plan for financial and strategic goals

US Bird flu Turns Spotlight on Milk Pasteurisation

As bird flu sees sales of raw milk spike, we look at the work of Tetra Pak, a giant in the world of pasteurisation.

Nestlé 'Meeting Sustainability Targets on Nescafé Coffee'

Sustainability

Coffee Prices Soar as Extreme Weather Hits Brazil & Vietnam

Drink

Guinness & Carlsberg Back Drought Resistant Grain for Beer

Drink