Ferrero, known for Nutella and Kinder, is buying WK Kellogg’s cereal business for $2.7 billion. That means they’ll now sell products for breakfast, snacks, and dessert. All day long.
If you work in procurement for retail, it means that this deal gives Ferrero more control over what goes on your shelves. They’re no longer just a chocolate company: they’re becoming a one-stop supplier for multiple food categories.
Why this changes your shelf strategy
Ferrero’s sales hit €18.4 billion last year, and with cereal added, their total product lineup is now worth over €21 billion. Here’s what that means for you:
Ferrero will likely push for bigger deals and stronger shelf control. You’ll need a new strategy to keep your options open.
What to watch for in 2025–2026 negotiations
- One Big Contract Instead of Several: Ferrero may combine all their products—chocolates, biscuits, cereals—into one deal. That makes it harder to negotiate category by category.
- Price Hikes Tied to Ingredient Costs: They’ll point to rising cocoa and grain prices to justify increase, even for products where costs haven’t gone up.
- Promotions With Strings Attached: Discounts on popular items like Nutella may only come if you agree to higher prices or more shelf space for their cereals.
If you don’t act, your cost per Ferrero case could go up 3–5% in a year, and you’ll see fewer promotions.
How to push back and protect your profits
What to Do in the Next 90 Days
- Build a cross-functional team: Bring together Procurement, Category Management, and Finance to look at Ferrero’s full impact on your business.
- Run pricing simulations: Test what happens if Nutella prices go up 6%—how does that affect promotions and sales?
- Plan for ingredient price swings: Create best/worst-case scenarios for cocoa and grain costs.
- Review your store-brand lineup: Find gaps and fast-track new products to launch by late 2025.
- Coordinate with buying alliances: Agree on when to walk away from deals and what products to use as replacements.
- Stock up on key Ferrero items: Secure inventory of top sellers like Nutella and Kinder Bueno to avoid supply issues.
- Negotiate better payment terms: Use Ferrero’s merger efficiencies to ask for longer payment windows.
Final Takeaway
Ferrero’s cereal deal isn’t just about adding new products: it’s about gaining more control over your shelves and margins. The merger wraps up in the first half of 2025, and new negotiations will follow quickly.
If you wait, you’ll be stuck with outdated strategies and higher costs. If you act now, you’ll keep your options open and protect your bottom line.
Shelf power is shifting. Make sure your strategy shifts faster.
