Kellanova, the U.S. snacks and cereals business acquired by Mars last year, is significantly increasing its investment in its Brazilian production plant.
The company has allocated 360 million reais (approximately $61 million) for its factory in São Lourenço, located in the southern state of Santa Catarina, to bolster the manufacturing of brands including Pringles, Cheez-It, and Choco Krispis.
Previously part of Kellogg, Kellanova was spun off in 2023 prior to being acquired by the family-owned Mars. The company stated it will channel this investment into the São Lourenço facility this year.
Additionally, São Lourenço received a prior investment of 250 million reais last year for the expansion of its Pringles snacks line, bringing the total investment over three years, including the current sum, to 600 million reais, as per their statement.
Víctor Marroquín, President of Kellanova’s Latin America business division, remarked: “We are confident in the potential of our portfolio in the country, which currently includes seven categories. By investing in process improvements, production capacity, technology, and infrastructure, our goal is to foster not only the sustainable growth of our business and brands but also the communities in which we operate.”
Kellanova pointed out that it produces a total of 100 different products at the São Lourenço facility, which includes local brands like Sucrilhos breakfast cereals, Minueto snacks, Parati biscuits, popcorn, and Trink powdered beverages.
In a deal struck in 2016 by Kellogg, Parati and the São Lourenço factory were acquired for an equivalent price of $429 million, subsequently bringing the Minueto and Trink lines into its portfolio. Kellanova noted that production of Pringles began at the facility in 2019.
The distribution of Pringles expanded in 2023 to Brazil’s north-east region, encompassing nine additional states: Alagoas, Bahia, Ceará, Maranhão, Paraíba, Pernambuco, Piauí, Rio Grande do Norte, and Sergipe.
Kellanova’s last reported results were issued in October for the third quarter, ending September 28
The group’s year-to-date sales showed a 5.2% increase in organic terms, totaling $9.6 billion. Additionally, adjusted operating profit surged by 18.3%, reaching $1.2 billion.
Net income rose by 5.8%, amounting to $978 million, and adjusted, diluted EPS increased by 19.6% to $2.93.