Ferrero’s rumoured deal to snap up WK Kellogg continued to generate headlines overnight. The WSJ yesterday reported that the Italian food giant, which owns Ferrero Rocher, Nutella and Tic Tac, was nearing a roughly $3bn deal to buy the breakfast cereal conglomerate.
According to the FT, the takeover could be announced as soon as this week. WK Kellogg’s shares surged by more than 56% in extended trading in New York on Wednesday after the reports (BBC). WK Kellogg, which owns Froot Loops and Frosted Flakes, currently has a market value of about $1.5bn (Reuters).
Meanwhile, another Italian fmcg giant, Lavazza, has predicted that coffee prices could finally fall after a period of record high bean prices.
Arabica coffee prices increased by 70% in 2024 and another 20% in the first two months of 2025 to reach a record high of $4.20 per pound on 10 February, but Lavazza says that the rising prices may have “peaked”.
It said the sector had faced “exceptional volatility”, driven by a “perfect storm” of droughts in Brazil and Vietnam significantly impacting coffee production and ongoing geopolitical disruption increasing transportation costs and delivery times (Independent).
Even so, company chair Giuseppe Lavazza blamed hedge funds for “80%” of the price rise (FT).
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