Kellogg Buys Quaker

edited 2017-01-12 01:12:07 in Chocolate
BATTLE CREEK, MICHIGAN - Tony the Tiger and Toucan Sam, meet Cap'n Crunch and Larry the Quaker Oats Guy. The privately-held Kellogg Company has reached a deal to acquire PepsiCo's Quaker Oats business for $8 billion in cash, bringing together two breakfast titans and creating a bigger, stronger force in the packaged food business.

Anonus Utilis, who owns 100% of Kellogg through his investment vehicle Utilis Industries, had long coveted the Quaker assets. For him, the greatest achievement of the deal is the addition of Cap'n Crunch, a personal favorite cereal of his, to the Kellogg portfolio. As a bonus, the eponymous mascot of the brand was created by Jay Ward Productions, whose non-advertising characters, like Rocky & Bullwinkle, belong to Utilis's media company, ABC Warner. But the benefits of the deal go beyond sentimentality. The Quaker line of products includes the famous line of oatmeals, along with Chewy granola bars, Aunt Jemima pancake mixes and syrups, Rice-a-Roni and Pasta-Roni packaged meals, and Life cereal. Kellogg, which has dabbled in diversification via its deals to buy Keebler in 2001 and Pringles in 2012, is now on better footing to compete with rivals like General Mills.

"We understand that, for PepsiCo, it was difficult to part with the Quaker Oats business, but we here at Kellogg are excited about the potential," said Utilis. For PepsiCo, it marks the end of an investment that, partially by design, never quite fit in with the rest of their portfolio, which includes soft drinks such as Pepsi and Mountain Dew, and the Frito-Lay line of snack food brands like Lay's, Cheetos, and Doritos. PepsiCo acquired Quaker in 2001 for $13.8 billion primarily to get its hands on the Gatorade line of sports drinks, which PepsiCo will retain after selling the other Quaker assets to Kellogg.

"I'd say that even with the reduced valuation, PepsiCo's still getting their money's worth," said Utilis on whether or not PepsiCo's investment in Quaker has paid off. In order to sweeten the deal, PepsiCo has the right of first refusal to purchase the Keebler business, which includes product lines such as Club crackers and Chips Deluxe cookies, from Kellogg if it is ever sold.

Comments

  • I like your old-fashioned oats.
  • You are the end result of a “would you push the button” prompt where the prompt was “you have unlimited godlike powers but you appear to all and sundry to be an impetuous child” – Zero, 2022
    I wondered when you were going to go through with this :o
  • kill living beings
    i can't believe Kellogg bought the Society of Friends
  • I've learned to tolerate drama...except on the boat
    Also, let us take a moment to say goodbye to this:

    image
  • You are the end result of a “would you push the button” prompt where the prompt was “you have unlimited godlike powers but you appear to all and sundry to be an impetuous child” – Zero, 2022
    I love that you still have that screenshot
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