Sweet Sorrow: Kelloggs Says Ciao to Keebler, Famous Amos
This episode of business wars daily is brought to you by zero to show a brand new podcast from octa. Every successful entrepreneur follows a different path. Learn how to forge your own by listening two zero two zero wherever you get your podcasts. From wondering, I'm David Brown and this business wars daily on this Wednesday. April tenth brace yourself. This episode could make you hungry for the next. Couple of minutes will be talking chocolate. But cookie business has become one big chess game last week Italian company Ferreiro announced it's buying Keebler and famous Amos cookies from Kellogg. Yes. The Keebler elves are legally any way moving to Italy Ferraro is spending one point three billion dollars to spirit the elves across the pond famous Amos and Kellogg unit that bake some girl scout cookies, we'll go with them Forero known for its new Tele hazelnut spread is quickly becoming one of America's sweetest sweets companies. This is the fourth American cookie or candy brand. It's eaten up since twenty seventeen. Ferreiro bought Nestle's candy division little over a year ago. Those Keebler elves will be joining baby Ruth butterfinger. And many other delicious American trifles. So what's going on Kellogg admits that it was starving? Those poor elves and Amos of resources it was pouring its efforts and money into treats that have sweeter returns on investment from pop tarts to Pringles Kellogg. I started shopping the brands in November it's been trying to figure out how to spur Americans lagging appetites for snacks from big old brand names. In fact, it's been a rough patch for most consumer packaged goods companies. According to NPR, young shoppers, simply aren't brand loyal the way baby boomers were for Kellogg. That means the Keebler name no longer pools. It's weight as American shoppers are increasingly avoiding processed foods Kellogg in its competitors. Are pulling their hair out at least sixteen consumer packaged goods CEO's had left their jobs between twenty sixteen and twenty eighteen the Wall Street Journal reported presumably. They were failing at or exhausted from trying to kick start growth, but if it were just the shift toward healthier food that was hurting cookie sales. Why would Herero be sweetening? It's own desert portfolio apparently will still indulge plenty, especially if the quality is high for railroad specializes in improving tired brands in February and relaunched Nestle's one hundred year old butterfinger candy Barr with more chocolate and no hydrogenated oils. So Ferreiro sees a huge opportunity in our collective sweet tooth as does delay international. Jones. The Oreo Mondays spending more than two billion dollars to buy those yummy. Danish butter cookies dance or rather maker the Kelsen group from Campbell Soup. Campbell's is another legacy food brand that's been struggling to reshuffle. Its portfolio Monday is also buying Australian cookie maker or. Or should we be calling them biscuits? So cookies are not being flattened by celery and carrots, there's still a lot of money to be made in indulgences, but selling them is harder than it's ever been. Which is why cookie chess his getting so aggressive? From wondering this is business wars daily. Hey before you run off to that mid morning snack. Take a second Llosa five star rating on your favorite podcast app for us. That'd be a better gift of box chocolates bags. I'm David Brown. We'll see you tomorrow. Businessworld daily is brought to you by zero to PO a brand new podcast from octa a lot of startup stories. Just focus on the big wins. But being an entrepreneur's heart. And it can be lonely. If all you ever hear about his others, crushing it in zero to PO, you'll hear about the different stages of business growth, and the blood, sweat, and tears. It took for some of the world's most successful entrepreneurs to get to where they are today. People like the Mark Andriessen, and Ben Horowitz, and Netflix is Patty mcchord zero IPO is hosted by Frederick Carris co-founder of octa and Joshua Davis, contributing editor at wired the conversations they have are candid and the learnings are invaluable. You can listen to zero to wherever you get your podcasts.