Mars Takes a Bite Out of Ozempic’s Market with $36 Billion Kellanova Acquisition

Well the rumors were true, and your snack aisle dilemmas in the grocery store just got a lot more complicated. Mars, the candy monopoly that began in a Tacoma, Washington kitchen back in 1911, and the creator of M&Ms and Snickers, has decided that satisfying your sweet tooth isn’t enough—they’re coming for your potato chips too. That’s why they’re dropping $36 billion big ones to acquire Kellanova, the company behind Cheez-Its, Pringles, and Pop-Tarts.

As more people pop Ozempic and Wegovy like they’re the new multivitamins, Mars is playing it smart. They’re hedging their bets by snagging a company that basically owns the snack aisle to fight back.

Although this deal might just look like another power play by a wealthy corporation, it's much deeper than a bunch of rich guys just wanting to own every house on the block—it’s a strategic move to strengthen Mars’ already solid 4.54% share of the U.S. snacking market. By adding Kellanova’s 3.9% share to their portfolio, Mars is gearing up to take on the reigning snack champ, PepsiCo. 

Since the news broke, Kellanova’s shares have shot up by 7%, investors are clearly excited, but they’re also a bit nervous—probably because they’re wondering if people will still want to buy Cheez-Its after they’ve been prescribed something that makes eating them feel like a chore. Mars, however, isn’t sweating it. They’re leadership announced they see snacking as a “large, attractive, and durable” category, even if some of our moms are too doped up on Ozempic to care.

So, what’s next on Mars’ snack attack? For all you health-conscious folks who’ve sworn off Pringles and Cheez-Its, Mars is promising to roll out some healthier options with this deal. Because, you know, when you think of Mars, "health food" is the first thing that pops into your head, right? But hey, if they can whip up a plant-based protein bar that hits like a Snickers, they might just pull it off. Maybe that's why Mars snapped up the health brand KIND back in November 2020—to give this whole 'healthy snack' thing a real shot.

This acquisition marks the biggest corporate takeover in the packaged food industry since Mars scooped up Wrigley for $23 billion back in 2008. As Mars continues to expand, it leaves us all wondering—what’s next? Will we see M&Ms in kale and quinoa flavors? Probably not. But one thing’s certain: Mars is betting that no matter how many weight-loss drugs hit the market, people will always have a soft spot for good old American snacks.

Stock.News does not have positions in companies mentioned.