Iconic U.S. cereal maker could be sold this week as Italy’s Ferrero pushes deeper into the American breakfast market.

Ferrero’s $3 Billion Bid for WK Kellogg Signals Shift in U.S. Breakfast Industry

a bowl of cereal with cereal falling into it

AUSTIN, TEXAS — WK Kellogg’s stock surged more than 50% this week after reports from The Wall Street Journal, CNBC, and the BBC confirmed that Italian confectionery giant Ferrero is nearing a $3 billion acquisition of the U.S. cereal company.

The deal, which could close within days, would see the maker of Froot Loops, Corn Flakes, and Rice Krispies change hands just two years after its 2023 spinoff from its international and snack food parent, now known as Kellanova.

Ferrero, known for Ferrero Rocher, Kinder, and Nutella, has been expanding rapidly into the U.S. packaged food market. A successful takeover of WK Kellogg would give the firm a strong foothold in American grocery aisles, where cereals like Frosted Flakes have long been household staples.

Market Reaction Reflects Confidence in Ferrero’s Expansion Strategy

Shares of WK Kellogg, which trades under the ticker KLG, jumped 52% during regular hours and as much as 56% in extended trading, CNBC reported. The company’s market cap sat near $1.5 billion before the report but is now trading at values that nearly double that figure.

BBC News noted that neither WK Kellogg nor Ferrero responded to requests for comment as of Wednesday, but multiple financial news outlets cite sources familiar with the matter who confirmed negotiations are advanced.

Debt, Health Trends, and Political Pressure Behind the Move

WK Kellogg has faced declining sales and rising costs. The firm reported a 2–3% drop in Q1 2025 revenue, which executives blamed on both consumer shift toward healthier breakfast choices and tariffs enacted by the Trump administration, according to CNBC. The company also holds more than $500 million in debt, BBC noted.

Policy changes have played a role as well. The Trump administration’s “Make America Healthy Again” campaign targeted food products with artificial colors, including cereals like Froot Loops. WK Kellogg has pledged to eliminate synthetic dyes from school-distributed products by the 2026–2027 school year, though no public retail timeline has been confirmed.

Ferrero’s U.S. Strategy Continues With Major Cereal Push

Founded in 1946, Ferrero is one of the world’s largest privately held chocolate producers. Its purchase of Nestlé’s U.S. candy business and recent U.S. product launches — including peanut-flavored Nutella and Dr Pepper-flavored Tic Tacs — show a clear intent to diversify in North America.

With this deal, Ferrero would inherit a U.S. cereal brand portfolio deeply embedded in consumer culture. But it would also be stepping into a category that has been under pressure. Shoppers have shifted away from sugary, branded cereals in favor of private-label and healthier alternatives.

Still, the name recognition of WK Kellogg brands may offer long-term strategic value for Ferrero as it adapts products and packaging to shifting preferences.

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