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Watchdog: Mars Inc. Acquisition of Kellanova a Harbinger for Higher Grocery Bills
As the proposed Kroger-Albertsons merger continues to face scrutiny for its likely anti-consumer consequences, government watchdog Acccountable.US released a new analysis showing Mars, Inc.’s planned acquisition of Kellanova also sets the stage for higher prices at the grocery store.
Last month, Mars, Inc.—which makes M&M’s, Snickers, and dozens of other household brands—announced it would acquire Kellanova, which makes Cheez-It, Pringles, and other popular snacks, for $35.9 billion. The deal marks yet another acquisition for Mars after acquiring Kind Bars and Kevin’s Natural Foods for a combined $5.8 billion since 2020 – and represents the latest food industry consolidation effort that enriches investors and a handful of billionaires at the expense of consumers.
An Accountable.US review first reported by MarketWatch found Kellanova — which only split off from Kellogg’s around a year ago — bragged about price hikes on earnings calls, potentially to make the company more attractive for a future acquisition. Meanwhile, in recent years, both companies have defended price hikes — even as Kellanova the company netted $964 million in profit last year has spent $1.1 billion on cash dividends and spent $170 million on stock buybacks since Q1 2023; and as Mars Inc. saw its annual net sales climb to more than $50 billion this year.
The latest takeover by Mars Inc. represents further consolidation of an already small club of big food makers. And like so many other industries, the fewer big food makers, the hungrier their CEOs get for record profits at the expense of everyday consumers. When given the opportunity, we know food executives will jack up prices without justification on popular items to further enrich themselves and a small group of investors. We know because they frequently brag about it on investor calls.”
