Kellanova, the US snacks and cereals business snapped up by Mars last year, is funnelling more investment into its production plant in Brazil.
The company has earmarked 360 million reais ($61m) for its factory in São Lourenço, located in the southern state of Santa Catarina, to support manufacturing of brands such as Pringles, Cheez-It and Choco Krispis.
Kellanova, which was formerly part of Kellogg until it was spun off by the parent company in 2023 ahead of the acquisition by family-owned Mars, said it will invest the cash at São Lourenço this year.
São Lourenço also received a 250m reais investment last year to expand production of the Pringles snacks line, taking funding in three years, including the latest portion, to 600m reais, according to a statement.
Víctor Marroquín, the president of Kellanova’s Latin America business division, said: “We are confident in the potential of our portfolio in the country, which currently includes seven categories.
“By investing in process improvements, production capacity, technology, and infrastructure, our goal is to foster not only the sustainable growth of our business and brands but also the communities in which we operate.”
Kellanova said it produces a total of 100 different products at the São Lourenço site, including the local brands Sucrilhos breakfast cereals, Minueto snacks, Parati biscuits and popcorn, and Trink powdered beverages.
In a deal struck by Kellogg in 2016, Parati and the São Lourenço factory were acquired for an equivalent price of then $429m, bringing the Minueto and Trink lines into its portfolio. Production of Pringles began at the facility in 2019, Kellanova said in the investment statement.
Distribution of Pringles was expanded in 2023 into Brazil’s north-east region, taking in nine additional states: Alagoas; Bahia; Ceará; Maranhão; Paraíba; Pernambuco; Piauí; Rio Grande do Norte; and Sergipe.
Kellanova’s last reported results were issued in October for the third quarter to 28 September.
The group’s year-to-date sales were up 5.2% in organic terms at $9.6bn, along with an 18.3% increase in adjusted operating profit to $1.2bn.
Net income climbed 5.8% to $978m, while adjusted, diluted EPS rose 19.6% to $2.93.
