Family-owned food groups US snack acquisitions

Family-owned food groups are increasingly expanding their presence in the United States through the acquisition of established snack and confectionery brands.

Ferrero Group has demonstrated a long-term strategy of acquiring well-loved brands to grow its US market share. Since 2017, the company has grown its annual US revenue from approximately $600 million to about $3 billion, with the US market now accounting for roughly 15% of Ferrero’s global revenue. This growth was driven by the $115 million purchase of Fannie May in 2017, the $2.8 billion acquisition of Nestlé’s US confectionery business in 2018—which included brands like Baby Ruth, Butterfinger, and Crunch—and the 2019 acquisition of Kellogg’s cookie and fruit-snack businesses, such as Keebler and Famous Amos. Michael Lindsey, president and chief business officer of Ferrero North America, described the strategy as to “buy well-established, loved brands, and then turn them back around.”

Other family-owned entities are also active in the sector. Germany’s Intersnack Group recently agreed to a $3 billion deal to take potato chip producer Utz private. Additionally, the Mars family completed a $36 billion take-private of Kellanova, the owner of Pringles and Cheez-It. Industry observers suggest that high inflation and shifting consumer preferences have depressed valuations, creating opportunities for family owners who are viewed as “patient, long-term stewards” compared to private-equity firms.