By Owen Tucker-Smith | Photography by Jamie Kelter Davis for WSJ

BATTLE CREEK, Mich. -- For decades, this city's fortunes were tied to the corn flake.

"Cereal City" was home to more than 100 cereal companies in the early 20th century, with the breakfast giant Kellogg its crown jewel. Residents have long had a stake in the company's fate, working in its factories and offices. Many hold shares of the company's stock.

At its height, Kellogg brought tourists and job openings galore. But in recent decades, the cereal industry's struggles have hurt Kellogg and the Battle Creek residents who depend on its success.

Now, locals are looking to a new benefactor: Ferrero, a European candy maker that says it has a plan to restore Kellogg's brands and share that growth with Battle Creek. On Friday, shareholders of WK Kellogg voted their shares in favor of Ferrero's proposed $3.1 billion acquisition, according to preliminary results, paving the way for the deal to close within weeks.

The vote marked a turning point for the city of 52,000 that sits at the confluence of two rivers in southern Michigan. Locals are sentimental about losing local control of an iconic, homegrown brand. But some are hopeful about a new owner.

"Over the past 20 years, we haven't got a ton of great news from Kellogg's," said Jake Smith, a former city commissioner. "A lot of folks around town have a little PTSD over it."

Bidding on breakfast

On a balmy Friday in June, representatives of the W.K. Kellogg Foundation Trust, which funds one of the country's largest philanthropic organizations, received a phone call from Gary Pilnick, chief executive of the company now known as WK Kellogg. It was a heads-up: Two parties had placed bids on the company, and a deal was on the horizon.

Members of the Foundation Trust had a question for Pilnick, according to a securities filing: What will this mean for Battle Creek?

Weeks later, when The Wall Street Journal reported that a sale to Italian candy company Ferrero was near, residents had the same reaction. Joe Schwarz, the city's former mayor and a former congressman, winced when he heard the news, recalling how other American cities had suffered when their core companies were bought.

"I was always worried that something similar to this would happen, and then it did," said Schwarz, who has since come around to the idea.

From his desk in city hall, Mayor Mark Behnke tried to figure out if the Journal's report was true. He hadn't gotten a heads-up from the company -- instead, his wife's stockbroker had seen the news and called.

Down the street at Kellogg's headquarters, Pilnick and his lieutenants were readying the announcement. He rushed to explain the deal to employees, with a slideshow featuring Tony the Tiger giving a thumbs-up and Toucan Sam thrusting his wing into the air.

Ferrero's management, Pilnick said, intends "to honor our own heritage by ensuring Battle Creek is a core location."

The next day, he gathered local business owners and economic-development officials to answer questions. He showed old images of cereal factories and vintage Kellogg advertisements, assuring them that the company would remain committed to Cereal City.

Kellogg split two years ago into a cereal company called WK Kellogg and a snacks company called Kellanova. In 2024, Mars reached a deal to take Kellanova private.

For the 95-year old Foundation Trust, situated in a towering downtown office and the largest shareholder in each of the two companies, the deal would mean giving up its financial stake in both.

W.K. Kellogg Foundation CEO La June Montgomery Tabron said the organization would remain committed to Battle Creek. "We have had positive engagements to date with Ferrero," she said.

Cereal entrepreneur

Will Keith Kellogg developed the recipe for Corn Flakes in the city in the late 19th century with his brother John. The two siblings didn't see eye to eye, and Will Kellogg struck out on his own, building a cereal company with hundreds of employees and customers across the world. Fans trekked to Battle Creek to visit his factory, eager to see how the breakfast cereal was made.

As Kellogg grew, the town benefited. The foundation has funded local education initiatives, made loans to small businesses and helped develop affordable housing.

Over the years, relations between the company and the region started to fray. In 1982, residents of Battle Creek Township and Battle Creek City accused Kellogg of "corporate blackmail" when the company threatened to leave the area if the two municipalities didn't merge.

Kellogg argued that more efficient local government would help the area attract more workers. Voters eventually approved the merger.

By the turn of the century, breakfast cereal began to decline. Kellogg downsized its hometown factory and shifted some production out of town. Smith, the former city commissioner, said that everyone in town has a family member or neighbor who received a Kellogg pink slip.

In 2021, Kellogg announced plans to lay off many Battle Creek cereal-factory workers over the course of several years. After the company split in 2023, WK Kellogg, the cereal business, reversed that plan and retained 170 local jobs.

Still, Kellogg is no longer the largest employer in town. That is now Denso, a Japanese auto supplier. Battle Creek Unlimited, an economic-development organization, has helped lure more businesses to the area, overseeing development of an industrial park with more than 85 facilities employing over 13,000 people.

To some, Battle Creek doesn't feel like "Cereal City" anymore. At Barista Blues Cafe, co-owner Maryann Vassallo said the city's annual Cereal Festival used to stretch across town but now is a fraction of its former size.

"Cereal's not considered the breakfast of champions anymore," said Jim Richmond, a former vice president of the W.K. Kellogg Foundation.

While Michigan's population has risen since 2000, Battle Creek's has dropped, according to Census Bureau data. Researchers at the Upjohn Institute for Employment Research have noted that the city's aging population could risk its ability to attract new business.

Kellogg's 2023 announcement included a $44 million investment in the local plant and 43 new jobs. Since then, though, the cereal maker has also suffered quarter after quarter of declining sales.

Some locals hope that Ferrero can bring innovation to Kellogg. As part of a private company, Kellogg will be able to operate and experiment without the pressure of quarterly earnings reports, said Joe Sobieralski, president of Battle Creek Unlimited.

Behnke, the mayor, joked that the takeover could yield Nutella-covered Frosted Flakes. Still, he said, "cereal's a tough business."

Write to Owen Tucker-Smith at Owen.Tucker-Smith@wsj.com

(END) Dow Jones Newswires

September 22, 2025 10:00 ET (14:00 GMT)

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