In 2012, Kellogg purchased Pringles from Proctor & Gamble for $2.7 billion. Kellogg previously owned several other snack brands, such as Keebler and Cheez-It, and hoped to expand internationally through Pringles’ products. Rather than relying on the cereal business for revenue, Kellogg has tried to turn to snacks to bring in revenue.
Looking at the business model canvas, Kellogg is expanding its value propositions. They are satisfying the customers’ desire for snack foods, rather than focusing on the cereal aspect of business. In addition, they are looking deeper into their customer segments to see what the customer wants them to provide. Their key partners, key activities, and key resources change with every additional brand purchase that they make. The key resources in this case relate to “the potential for increased scale in Europe and a good entry point into snacking in Asia and Latin America.” As Pringles generates about $1.5 billion in annual sales, Kellogg will have made back their costs of buying the company in two years. According to analysts, “The company already has a dominant position in the snacks category, including fruit snacks, granola bars, cookies, crackers, etc.” All in all, Kellogg simply sees an opportunity to seize with Pringles.