KELLANOVA – the company formerly known as Kellogg Company – cannot keep up with Pringles demand from hungry snackers across the globe.
“We are selling every can of Pringles we can make,” chief executive officer Steve Cahillane said on Tuesday (Mar 5) in Chicago. “We are opening new factories in Asia and Mexico even as we speak.”
Cahillane said the company wants to invest in high-growth brands such as Pringles.
Kellanova needs the fried potato crisps to gain market share after it spun off its North American cereal business last year in an effort to focus on categories such as snacking and frozen foods.
Kellanova also can sell more products overseas, especially in African countries, said Cahillane. The company has a noodles business in Nigeria that generates nearly US$1 billion in sales, he said.
“Africa is, to me, the continent of this century and probably the next century,” he said. “We made a big bet in Africa.”
Legacy food companies have been trying to lure shoppers with different meal occasions, along with more snacks. Kellanova, based in Chicago, owns brands including Cheez-It, RXBAR and Eggo frozen waffles.
However, the company’s North American business has been under pressure as consumers stretch their US dollars, cut food waste and switch to private label amid persistent inflation.
In the latest quarter, the company’s volumes dropped more than 6 per cent in North America, while also declining in Europe. BLOOMBERG
