Transcript:
Conway Gittens: I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.
The trend of slower inflation gains remained intact in July. Consumer prices rose 0.2 percent as expected, and over the past 12 months prices were up 2.9 percent. Excluding volatile food and energy prices, the so-called core rate posted its smallest yearly gain since April 2021.
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In other news - A $35.9 billion snacks deal is grabbing the spotlight. Mars candy company is buying Kellanova, the non-cereal unit spun off from Kellogg’s in 2023.
The merger brings iconic brands like Snickers, M&M’s, Mars bar, Rice Krispy Treats, Pringles, and Cheez-It all under one corporate umbrella. Food outside the snack aisle are also part of the deal including Pop-Tarts, Eggo, and the vegan food line MorningStar Farms.
The CEO of Mars said in a statement: “We have a substantial opportunity for Mars to further develop a sustainable snacking business that is fit for the future. We will honor the heritage and innovation behind Kellanova’s incredible snacking and food brands while combining our respective strengths to deliver more choice and innovation to consumers and customers.”
The merger comes at a pivotal moment for the food industry. With fewer dollars to spend due to inflation, consumers are picking and choosing where and how to spend their money. In addition, some consumers are shying away from candies, cookies and snacks in favor of healthier options. Noticing that trend a few years ago, Mars snapped up the maker of Kind bars and then Nature’s Bakery.
Mars, which is still family-owned, raked in $50 billion in sales last year, while Kellanova rang up $13 billion.
That’ll do it for your Daily Briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
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