Munch madness
Treat titan tie-up
Good morning, confectionary connaisseurs. This is your Stock Market Rundown for August 23rd, 2024. Thank you once again for reading. Let’s bite in:
TODAY’S TOP STORY: CANDY KINGS
What do you prefer, salty or sweet? Pringles or Snickers? Soon, you’ll be buying them from the same company. And multinational candymaker Mars will get paid no matter how you widen your waistline.
Surprisingly for a business with $45 million of annual revenue, Mars isn’t a public company. The Mars family, which still owns the business, is America’s second-wealthiest family—and a notoriously secretive clan that opts to stay out of the limelight.
The founder, Franklin Clarence Mars, started selling candy in Tacoma, Washington in 1911. Franklin was basically the Elon Musk of chocolate bars—he invented Milky Way, Snickers, and 3 Musketeers, still hot sellers at your local bodega.
Through the years, acquisitions have been a big part of Mars’ growth—past targets included Wrigley gum and Kind bars. But they’ve just sealed their biggest deal ever: buying Kellanova for $36 billion.
Kellanova (formerly part of Kellogg’s) makes artery-clogging snack time favorites like Cheez-Its and Pringles, as well as not-so-healthy ways to start the day like Eggo Waffles and Coco Pops.
This merger is the largest transaction in consumer packaged goods since Kraft and Heinz linked up in 2015. The Mars family is obviously betting that, even if kale salad and Ozempic are trending, sweet and salty treats will remain an American compulsion.
SO WHAT ELSE IS GOING ON?
Big banks are in trouble from regulators for not doing enough to prevent scams on payment networks. Pro tip: if Bill Gates randomly contacts you saying he needs your help… that’s not Bill Gates.
Hotel operator Hilton raised its 2024 profit forecast as demand for international travel surged. Nothing says “summer fun” like overpaying for a hotel room with a view of a brick wall.
Kroger is promising it’ll lower grocery prices by $1 billion after its proposed merger with rival grocery store Albertson’s gets approved. Awesome, I can switch to Tide instead of the store-brand stuff that makes my cardigans itchy.
Pepsi is being sued for labeling Gatorade protein bars as nutritious, when they actually have as much sugar as a KitKat. Wait, you mean something that comes in Cookies & Cream flavor isn’t as healthy as a tofu smoothie? Shocking.
That’s it for the week, my friends. Have a terrific weekend, and we’ll see you back here bright and early Monday. Yours in capitalism, The Axe
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