31 Jul 2025 Why confectionery giants are going all-in on snacks

Have you spotted the trend? Big names in confectionery are investing heavily in snacks. Two of the giants in sweets are buying two of the biggest names in snacks marking a clear move towards category diversification….

Mars and Ferrero, two of the world’s biggest names in confectionery, are staging a snack-fuelled transformation.

What started as quiet acquisitions — one muesli bar brand here, one biscuit company there — has snowballed into billion-dollar strategic plays. The message is clear: confectioners are no longer just selling treats. They’re building health-tinged, snackable empires.

The snack takeover: Mars & Ferrero make billion-dollar bets

Mars is leading the charge with a jaw-dropping $36-billion acquisition of Kellanova, announced last August, and a deal that expands its influence well beyond candy bars. While Mars already plays in the snacking space through its Mars Snacking division (home to brands like Twix and Snickers), Kellanova’s portfolio unlocks more modern, functional snack territory.

Across the Atlantic, Ferrero Group — Italy’s legacy confectioner and creator of Nutella — is also shopping smart. After quietly collecting health-oriented snack brands like Eat Natural and Fulfil, Ferrero is now buying WK Kellogg in a $3.1-billion deal.

This gives Ferrero access to iconic breakfast cereals like Froot Loops and Special K, allowing it to stretch into morning routines and nutrient-forward offerings.

Health pressure & reputation repair

Why this dramatic pivot? One big reason: public health scrutiny.

In the 2024 global nutrition rankings, companies like Hershey, Mondelēz, and Ferrero landed squarely at the bottom. Their portfolios, rich in sugar and light on nutrients, aren’t playing well in an era of wellness marketing and health scorecards.

In the UK, that pressure is turning into policy. Soon, large food companies will be required to publicly report how much of their sales come from healthy vs unhealthy products. For candy companies, those numbers could be a PR disaster. But add a strong snack portfolio, and suddenly the balance sheet looks better, for both reputational optics and regulatory compliance.

Snacks are the smart play

Snacks aren’t just healthier, they’re flexible. Unlike classic confectionery, snacks can wear multiple hats:

• Functionality: Think protein bars, fibre biscuits, probiotic granola
• Routine: Breakfast cereals and mid-day munchies fit daily habits
• Positioning: Snacks can be indulgent and nutritious

This gives confectionery companies a way to keep consumers engaged while adapting to new values. It’s not about abandoning chocolate — it’s about reframing it, layering it with purpose and balance.

What’s next?

Don’t expect this to be a one-off. These moves from Mars and Ferrero mark the beginning of a broader industry realignment. Treats won’t disappear, but they’ll likely live alongside snacks designed to support gut health, boost energy, or carry that coveted “better-for-you” badge.

In short: the future of confectionery isn’t less indulgent — it’s more strategic.

Source: FoodNavigator.com