Kellanova’s $4 Billion Global Expansion Plan In Motion

Kellogg has big plans for Kellanova, its new snacking division. During a recent conference with Wall Street analysts, Kellogg CEO Steve Cahillane highlighted Pringles and Cheez-It as the brands that’ll drive growth. 

The company expects Kellanova’s net sales to range around $14 Million by 2024. Cahillane stressed that Pringles, acquired in 2012, has so much untapped potential. 

According to the company, the brand is now set for growth through innovative flavors and packaging. Currently, it holds a single-digit market share in most regions.

Kellanova’s Strategy for Retail Expansion

Kellanova also aims to increase its presence in convenience and smaller retail outlets. The plan is to introduce more small-pack options. At present, nearly 24% of Pringles sales happen in these venues. “We have room for growth in these channels, particularly with salty snacks,” Cahillane noted.

Cheez-It is set for global expansion in the next three years. Markets like the U.K., Ireland, Germany, and Australia are targeted for 2024. France and Spain will follow in 2025, and Japan in 2026. Cahillane indicated that similar global expansion plans are in the pipeline for other Kellanova brands.

“After successfully rolling out Cheez-It, we’ll evaluate next steps for brands like Rice Krispies Treats and Pop-Tarts,” he said. Kellanova has already shown promising signs of growth. In fact, sales surged over $3 Billion from 2019 to 2022, a compound annual growth rate of 9%.

Also, Eggo and Pop-Tarts are nearing the $1 Billion sales mark, with about $800 Million in sales last year. Along with Pringles and Cheez-It, these brands made up 50% of Kellanova’s 2022 sales. Their role as key drivers for the new snacking division is straightforward and clear.