Kellogg’s will buy protein-bar maker

BATTLE CREEK, Mich. — Kellogg Co. is pursuing a health kick under its new chief executive officer.

The breakfast-cereal giant, which handed the reins to Steve Cahillane this week, agreed to buy protein-bar maker Chicago Bar Company LLC for $600 million. That company produces the RXBar, which is made from eggs, fruit and nuts — and lists ingredients prominently on the front of the package.

Kellogg hired Cahillane from vitamin purveyor Nature’s Bounty, a sign that the maker of Frosted Flakes wants to pursue a more health-conscious strategy. The Battle Creek, Mich.-based company has been struggling to cope with broad shifts in how Americans eat and shop. Cereal sales have declined for years, and Kellogg’s snackbar business also has performed badly — with its oncestrong Special K brand losing its allure with consumers.

Large packaged-food companies also are facing concerns that a grocery price war will further batter margins, especially as Amazon.com Inc. pushes into supermarkets with its acquisition of Whole Foods. Grocery stores are increasingly turning to private-label products in a bid to draw price-conscious customers, adding another headwind to national brands.

Shares of Kellogg have dropped 15 percent this year. The stock was little changed on Friday, trading at $62.83 in New York.