BATTLE CREEK, Mich. — Kellogg Co. is hopeful its Pringles acquisition will present new opportunities for brand-building innovation.
“We already have excellent snack businesses, but we are very excited about the opportunities for innovation and expansion that the inclusion of Pringles will bring,” said John Bryant, president, chief executive officer and director during a call with analysts and investors Wednesday.
As a general rule, Kellogg strives for about 15% of sales to come from new product innovations, Brad Davidson, president of Kellogg’s North American business unit, told SN last month.
The stacked potato crisps will join Keebler and Cheez-It snack brands and Special K Cracker Chips. Kellogg's snack unit presently accounts for less than 40% of sales, but the addition of Pringles will make it comparable in size to its cereal business, responsible for 51% sales.
Kellogg agreed to acquire Procter & Gamble’s Pringles business for $2.7 billion Wednesday after a deal to sell the brand to Diamond Foods fell through amidst an accounting scandal.