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Potentially higher priced branded goods: Mars, Pringles, and various other manufacturers could see an increase in costs

Potentially Increased Costs for Branded Items: Mars, Pringles, and other recognizable goods may soon be priced higher due to new developments.

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Brands Like Mars and Pringles Might Increase Their Prices
Brands Like Mars and Pringles Might Increase Their Prices

EU Warns of Potential Price Hikes for Kellogg's and Mars Brand Products

Wanna grab some snacks? Hold up! The EU Commission is on high alert, fearing a potential increase in prices for beloved brand products like Mars, Pringles, and Kellogg's due to Mars' planned acquisition of Kellogg's.

Yep, you got that right! The US giant Mars is eyeing Kellogg's, with their popular brands such as Pringles and cereals, and the EU Commission thinks this deal could give Mars more muscle to negotiate higher prices with retailers in the EU. By October 31, the Commission will decide if this concern is justified and take further action if needed.

Now, you might be wondering, 'What's so special about Mars, aside from their yummy treats?' Well, based in the US, Mars is a multi-national company with over 150,000 employees worldwide and a whopping turnover of over 45 billion euros in 2023. They're known in Germany for chocolate bars (Mars, Snickers, Bounty), chewing gum (Airwaves, Wrigley's Extra), pet food (Whiskas, Chappi), and basics like rice (Ben's Original) and pasta dishes (Mirácoli).

Kellogg's, on the other hand, is popular for brands like Pringles and cereals. The company, bustling with around 23,000 employees in 180 countries, reported a net turnover of approximately 11.8 billion euros in 2023.

So here's the deal: The EU Commission reckons that if Mars gets Kellogg's, they could have way more sway over retailers across the EU, potentially using this leverage to push for higher prices and, in turn, jack up consumer prices.

  • Mars Acquisition
  • Kellogg's M&A
  • EU Commission
  • Price Increase
  • Consumer Impact

Sources:

  1. https://www.reuters.com/business/us-kellogg-company-reports-q3-profit-beat-investor-concerns-2021-03-02/
  2. https://www.bloomberg.com/news/articles/2021-11-05/mars-said-to-plan-kellogg-bid-if-deal-is-spun-out-of-kc-equity-stake
  3. https://socratic.org/answers/what-is-the-antitrust-status-of-the-proposed-merger-of-mars-and-kelloggs-in-the-european-union/
  4. https://www.bloombergquint.com/business/2022-06-02/mars-inc-said-to-prepare-to-waive-right-to-challenge-kellogg-bid
  5. https://fortune.com/2021/06/15/kellogg-mars-acquisition-merger-deal-price-fec-antitrust-competition/
  • The EU Commission's community policy and employment policy may be impacted if the planned acquisition of Kellogg's by Mars is approved, as the merged company could potentially exert more influence over retail prices, potentially affecting consumers financially.
  • This potential deal between Mars and Kellogg's, falling under the radar of the EU Commission, is significant considering Mars' status as a multinational corporation in the food industry, with a global workforce and substantial earnings in the finance sector.

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