Mars has announced plans to acquire Kellanova (K) in a $36 billion deal. Peter Galbo, BofA Securities senior food & beverage analyst joins Market Domination to discuss his outlook on the snack and beverage sector in light of this acquisition.

Galbo believes that the deal "makes a ton of sense" for both companies. He describes it as "a white space opportunity" for Mars, which is primarily known for sweet snacks. This acquisition adds a salty component to their portfolio, allowing them to "cover the waterfront in terms of snacking" and become a more "global competitor" with increased scale.

Addressing the consumer slowdown, Galbo acknowledges, "It's been a pretty challenging calendar 2Q for a lot of the snack companies." However, he highlights that Kellanova "was probably the one that stood out in a positive light," demonstrating continued volume growth amid sluggish customer interactions in the snack sector.

Regarding investment opportunities within the snacking industry, Galbo highlights McCormick (MKC) as an attractive option for investors.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Angel Smith