Kellogg Company (NYSE: K) intends to buy RXBAR for $600 million, to enhance their portfolio targeting younger customers and for a better sales. This high-protein snacks would strengthen their wholesome snacks offering. This move is on track with the group’s aim to deliver the highest quality products that taste great, and being radically candid and transparent with their consumers. With this acquisition, the group intends to leverage the solid millennial consumption and their diversified channel presence including e-commerce. Millennials is a major buying demographic who see cereal as less nutritional as compared to other options and not as easy to eat on the go, based on the survey by London research group Mintel. As per Mintel research, over 70% of Millennials surveyed in the United States, desired cereal to keep them full for a longer time while 45% said that the cereal gave them a sugar rush. Moreover, 56% of them thought cereal needed to be more portable while 39% said it was inconvenient because they had to clean the dish while preparing it.

The group believes that RXBAR’s are clean-label protein bars made with whole food ingredients which could be a great in between meals, or as a quick, on-the-go breakfast. The protein bars are available in 11 flavors, with a line specifically aimed at children.

The group’s John A. Bryant chief executive officer of the firm since last seven years, has decided to retire from the day-to-day leadership of the company while its board of directors has elected Steven A. Cahillane to be his successor. The shares of Kellogg Company rose over 0.2% today (as of 12:45PM EDT on October 6^th, 2017; Source: Google finance). On the other hand, the stock lost over 13.2% in the last six months. But, as per tipranks.com, Kellog stock has an average target price of $73.6, which is a 17.2% upside from the current levels.