• Nosh Product Reviews
• Lexington Bakes Raises $1M
• ZEGO Buys Processing Facility
• Western Smokehouse Has A New-Old Owner
• Kraft Sells Italian Baby, Specialty Food Business
• Now Streaming: CPG Week

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“Sono Ottimi!”

That’s the phrase Tony the Tiger will need to learn after Frosted Flakes’ parent company WK Kellogg confirmed this morning that it had reached a deal to sell itself to family-owned Italian confectionary giant Ferrero Group.

The sale, which will fetch about $3.1 billion for Kellogg shareholders, will put the cereal maker under the aegis of the maker of Nutella spreads and Ferrero Rocher chocolate-covered hazelnut candies.

The deal caps a run of American acquisitions by Ferrero that started in 2018, when it purchased both the Nestle USA chocolate business as well as Kellogg’s own cookies and cones business (those Keebler elves and stuff). They also own Blue Bunny and other Wells Enterprises ice cream brands.

Ferrero picked up protein snacking brand Power Crunch in January. Last year, Ferrero North America opened its first U.S.-based chocolate production facility in Bloomington, Ill. 

Cold cereal netted nearly $11 billion in the latest 52-week period ending June 15, according to Circana sales data. Kellogg’s represents about 24% of the market with dollar sales down 4.4% during the period.

The $3 billion cereal deal is dwarfed by the pending $36 billion acquisition of Kellogg’s snacking spinoff Kellanova by Mars, Inc., announced late last year. That puts pantry fillers like Pop-Tarts, Pringles, Eggo, and Cheez-It crackers in the hands of the erstwhile candy maker, which is also family-owned.

At the time of the announced split by Kellogg’s in 2022, the company’s enterprise value was estimated at around $30 billion. Aside from Frosted Flakes, WK Kellogg also owns Froot Loops, Rice Krispies, Special K and Kashi brands, among others.

Insiders can access the full report on Nosh.

Nosh Live returns to Marina del Rey, CA on December 4+5, and the official room block at the Marriott is now open. Staying on-site means easy access to the full experience, networking with industry leaders, product sampling, expert talks, and more.

Register today to unlock access to the room block and save $100 with early registration.

In this reviews roundup, we nosh on sports performance brand Cadence’s expansion into nutrition bars, David Beckham’s family-focused BEEUP fruit snack line, and Breyers s’mores-inspired ice cream sandwiches.

We are sharing our takes on taste and texture, packaging and positioning and opportunities for improvement.

🆓 Check out this week’s review roundup on Nosh.

Want your product reviewed? Send an email to mwatrous@nosh.com.

Looking for a supplier who’s tracking consumer needs? With all this focus on wellness in today’s world, the Planteneers’ team created a methylcellulose-free solution that can still do the work of traditional texturizers. It’s just another food innovation to add to your portfolio of ingredients. Learn more

Lexington Bakes has raised $1 million in a funding round led by VC firm Rainfall Ventures. The new cash will support the business as it scales up with a new co-packing partner, pipeline of retail launches and growing team that has been strategically built via agencies, contractors and fractional help.

• Aligning with Rainfall has provided the brand with strategic support, founder, CEO and chef Lex Evan told Nosh.
• One of his investors has become “acting CMO” and meets with him on a monthly basis to pressure test ideas and marketing approaches. 
• Evan said he is working to build Lexington Bakes as a content or media company that “just happens to have products… I feel like that's the future of any brand – so much of marketing has become social media.”

💬 “What I'm most excited about is being able to say yes to more opportunities. What I'm most stressed about is saying yes to more opportunities, but that's the trajectory,” Evan told Nosh.

Insiders can access the full story for all of the details.

ZEGO has acquired a gluten-free and organic grains processing plant, land and equipment from Montana Gluten Free Processors (MGFP), the company announced this week.

Alongside that news, the purity-tested, allergy-friendly oat brand launched a new venture known as the Collaborative Integrated Value Chain (CIVC) LLC as it works to expand and strengthen U.S. supply chains for these ingredients.

CIVC’s work will support values-aligned packaged food brands and regional and regenerative farmers growing premium rotational crops by supporting the commercialization for grains such as millet, buckwheat and quinoa.

💬 “This acquisition is about more than infrastructure – it’s about building a caring food system. CIVC is designed to nurture a collaborative, values-based supply chain from farm gate to retail shelf,” said Colleen Kavanagh, founder and CEO of ZEGO and CIVC.

Insiders can access the full story for a complete look at the new facilities capabilities for CPGs.

What goes around comes around for Western Smokehouse. The meat snack maker has found itself back under ownership of Monogram Capital Partners. 

• Monogram took a majority stake in the private label meat stick and jerky producer back in 2018 and then sold about 60% of the company to AUA Private Equity Partners in 2023. 
• On Wednesday, it was announced that AUA had sold its share back to Monogram after more than doubling the size of the business.
• Over its seven years under PE ownership, Western Smokehouse has grown from a family business operating one facility in Missouri to becoming one of the largest meat snack private label co-packers in the U.S.
• The business will close 2025 with seven facilities in operation and over 1,000,000 sq. ft. of production capacity, servicing brands like Archer, Chomps and Conagra’s FATTY.
• Dried meat snacks have become a nearly $5 billion category, growing dollar sales 8.8% in the last 52 weeks ending June 15, according to Circana tracking.

Read the full report for a complete look at the dried meat snack space.

Kraft Heinz is offloading its Italian infant and specialty food business to NewPrinces S.p.A. (formerly Newlat Foods). 

• NewPrinces will take over the Plasmon, Nipiol and Dieterba infant foods and the Aproten and Biaglut specialty brands. 
• The deal also includes the purchase of Kraft Heinz’s production facility in Latina, Italy, which employs about 300 people.
• The transaction is part of Kraft Heinz’s intentional strategy to drive growth in its “Accelerate” platforms, which includes its core Heinz tomato ketchup and other sauces.

On the CPG Week podcast, the hosts discuss the rise of Khloé Kardashian’s protein popcorn brand and the downfall of a co-manufacturer. 

Monster Beverage execs have scooped up Rite Aid’s Thrifty Ice Cream brand in bankruptcy proceedings. What does this mean for the future of the business?

Joe Tea is expanding beyond tea and showcased its new snack and beverage launches at the Summer Fancy Food Show this month.

Click here to listen to this week’s episode. Also available on Spotify and Apple Podcasts.

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