Why the sale? Originally P&G wanted to sale Pringles to
Diamond Foods but the deal never went through because Diamond had problems with
its accounts. How I interpret this is that P&G has been trying to sale
Pringles for a while. P&G is a billion dollar company but when you look at
all the products it offers (Crest, Olay, Mr. Clean, etc.), Pringles doesn’t
really fit in anywhere. Because Pringles is the only brand geared toward food,
it makes sense for P&G to trim it off their business tree. One brand is
hardly enough to justify the investments required for marketing to that
particular niche.
Kellogg, a company most famous for its breakfast foods, will
be adding a new niche–lunch snacks. I am very interested in seeing where this procurement
will lead. Will Kellogg expand on its new marketing area? Or will it stay like
it is: 37 different kinds of breakfast foods, and Pringles?
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