What does the Mars-Kellanova megadeal mean for industry? Summary
- Mars completed $36bn acquisition of Kellanova, forming Mars Snacking
- Combined portfolio spans Pringles, Cheez‑It, Pop‑Tarts, Snickers, M&M’s, Twix
- Deal strengthens multi‑category scale and retailer appeal, intensifying competitive consolidation
- Innovation expected in healthier, protein‑rich, breakfast, and flavour‑mashup launches
- Risks include antitrust scrutiny, higher leverage, integration complexity, retailer pushback
As 2025 came to a close, the world’s biggest confectionery company Mars, Inc quietly completed its landmark acquisition of snacking giant Kellanova – a deal that cements its dominance across the global snacking landscape.
The transaction, valued at around $36bn (€30bn), brings together two of the industry’s most influential brand portfolios – Kellanova with blockbuster names including Pringles, Cheez-It and Pop-Tarts, and Mars with megabrands like Snickers, M&M’s, Twix and Skittles – under the Mars Snacking division.
But what does this merger mean for the industry, and what does it mean for the future of confectionery and snacking?
Mars Snacking: Market power shift
By acquiring Kellanova, Mars has taken on multiple big-name snack brands, firmly establishing its stake in the snacking sector.
This, says Issy Perez, managing partner at consultancy firm Boyden, and former general manager for Central America at Kraft Foods, enables Mars to present a multi-category snacking portfolio similar to industry giant PepsiCo, making it a more attractive partner for retailers.
But while this creates huge opportunities for Mars, its competitors are likely concerned about its potential dominance, leading to increased M&A activity as majors like Mondelēz International and PepsiCo pursue defensive acquisitions to safeguard market share.
“There could be more M&A activity targeting companies that offer products across different day parts, premium segments, or nutritional benefits,” says Perez. “PepsiCo primarily focuses on beverages and salty snacks, with a limited presence in breakfast and kids’ products. Similarly, Mondelēz focuses on biscuits and chocolates but doesn’t include cereal brands. Because of this, I think there might be some strategic acquisitions in healthier snack options or breakfast segments to compete with Mars’ wide range.”
Ferrero’s acquisition of W K Kellogg is a good example of brand diversifying into a complementary sector to build its product portfolio and consumer base. We expect to see more of this.
Mars Snacking Opportunities
As well as gaining new products, industry experts predict innovation will take centre stage for Mars in 2026.
“I’m expecting increased activity in new product development, particularly in better-for-you, protein-rich, and on-the-go options,” says Perez.
Mars already owns KIND and Nature’s Bakery, signaling interest in healthier snacking options. With Kellanova’s Nutri-Grain, RXBAR, and Special K, they have the opportunity to introduce innovative health-focused products, like protein snacks, fibre-rich cereals, and low-calorie treats.
On top of this, Perez is predicting flavour mashups between Mars and Kellanova brands – think sweet and salty Mars Pringles bars or crunchy Cheez-It M&Ms.
There’s also a big opportunity to expand the breakfast-on-the-go snacking occasion.
“Pop-Tarts and Rice Krispies are indulgent options that could benefit from more innovation,” says Perez. “Neither PepsiCo nor Mondelēz has a broad breakfast snacking portfolio.”
Mars and Kellanova brands create co-branding opportunities – Snickers or M&M’s could appear in cereal bars or savory snack formats. This, says Perez, would be much easier and faster than the recent collaboration between Hershey and Mondelēz on Oreo Reese’s cookies and Reese’s Oreo cups.
The risks behind the opportunities
Mars’ dominant move into the snacking sector doesn’t come without risks.
The acquisition drew significant regulatory scrutiny, particularly from the European Commission, which launched an in‑depth antitrust investigation in 2025 over concerns that combining Mars’ powerful confectionery portfolio with Kellanova’s salty snacks and cereals could give the company excessive leverage in retailer negotiations and potentially reduce consumer choice. Although the deal ultimately received unconditional approval, the level of examination highlights the ongoing regulatory pressure Mars may face as it grows its influence across multiple snacking categories.
The American multinational has also taken on a substantial financial burden in funding the $36bn purchase. According to law firm Simpson Thacher, which represented Mars through the acquisition, the move was financed through a mix of loans and long‑term debt, prompting an S&P credit downgrade to A.
Beyond finances, integrating a company operating in 180 markets and aligning more than 50,000 employees across manufacturing, distribution and brand teams presents operational complexity, with analysts noting that the lack of forward‑looking guidance through the merger period reflected the uncertainty surrounding the integration process.
Retail pushback is another emerging risk, as the combined portfolio increases supplier concentration and could trigger resistance from major retailers wary of Mars’ strengthened negotiating power.
Reshaping the global snacking landscape
Ultimately, Mars’ takeover of Kellanova marks far more than a corporate reshuffle, it represents a fundamental shift in the balance of power across the global snacking sector.
With an expanded, multi‑category portfolio and unprecedented scale, Mars is now positioned to dictate the pace of innovation, shape retail negotiations, and influence consumer trends across everything from indulgent treats to breakfast-on-the-go.
But this newfound strength also raises the stakes for the wider industry. Competitors will be compelled to accelerate their own M&A strategies, retailers may push back harder against supplier consolidation, and regulators will be watching closely to ensure that choice and competition are preserved.
For now, all eyes are on how effectively Mars integrates Kellanova and leverages its broadened brand universe – and how the rest of the market responds.
We’ll be monitoring the industry’s next moves every step of the way.
