Kellanova invests US$61M in Brazilian production plant to strengthen snacks, cereals portfolio

BRAZIL – Kellanova, the US-based snacks and cereals business giant, has announced a 360 million reais (US$61 million) investment in its São Lourenço production plant in southern Brazil.

The move aims to bolster manufacturing capabilities for popular brands such as Pringles, Cheez-It, and Choco Krispis, further solidifying the company’s presence in the Latin American market.

The São Lourenço facility, located in the state of Santa Catarina, has become a key hub for Kellanova’s operations in the region.

This follows a 250 million reais (US42.8M) injection in 2023 to expand Pringles production, bringing the total funding allocated to the plant over the past three years to 600 million reais(US$102.7M).

Kellanova, which was spun off from Kellogg in 2023 ahead of its acquisition by Mars, has been strategically enhancing its production capacity and technological infrastructure at the site.

The plant currently manufactures 100 different products, including local favorites such as Sucrilhos breakfast cereals, Minueto snacks, Parati biscuits and popcorn, and Trink powdered beverages.

Víctor Marroquín, President of Kellanova’s Latin America division, emphasized the company’s commitment to sustainable growth and community development.

 “We are confident in the potential of our portfolio in the country, which currently includes seven categories,” he said.

He added that, by investing in process improvements, production capacity, technology, and infrastructure, the company’s goal is to foster not only the sustainable growth of our business and brands but also the communities in which it operates.

The São Lourenço facility has a rich history within Kellanova’s portfolio. Originally acquired by Kellogg in 2016 for US$429 million, the plant brought the Parati, Minueto, and Trink brands under the company’s umbrella.

Production of Pringles began at the site in 2019, and in 2023, distribution of the iconic snack brand was expanded to Brazil’s northeast region, reaching nine additional states: Alagoas, Bahia, Ceará, Maranhão, Paraíba, Pernambuco, Piauí, Rio Grande do Norte, and Sergipe.

Kellanova’s investment in Brazil reflects its confidence in the region’s growth potential. The company’s latest financial results, reported in October 2023, underscore its strong performance. Year-to-date sales rose 5.2%to 9.6billion, while adjusted operating profit increased by18.39.6billion, while adjusted operating profit increased by18.31.2 billion.

Net income also climbed 5.8% to 978million, with adjusted diluted earnings per share rising 19.6978million, with adjusted diluted earnings per share rising 19.6% to 2.93 billion.

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