BATTLE CREEK, MICH. — Kellogg Co. may be considering a move to acquire snack maker Diamond Foods for more than $1.5 billion, according to an Oct. 23 article in the New York Post. “Kellogg is somewhere between aggressive and desperate to use mergers to try to evolve its business away from breakfast cereal,” a source close to the situation told the Post. Diamond’s portfolio of brands includes Kettle potato chips, Emerald nuts and Pop Secret popcorn. Late last month, Brian Driscoll, president and chief executive officer of Diamond Foods, said the San Francisco-based company was evaluating acquisition opportunities in on-trend categories.
“We think that our portfolio range needs to be expanded,” Mr. Driscoll said during a Sept. 29 earnings call with financial analysts. “We don’t think we have the kind of range that’s ideal for where we want to take the company over time. We want to stick close to our center of competence, which is convenient protein and snacks and salty snacks. That’s our ambition.”
Kellogg is no stranger to major acquisitions in the snacks category. The company in 2012 bought Pringles from Procter & Gamble for $2.695 billion.