Kellogg Company to split into three businesses
Kellogg Company has announced that it will be spinning off its North American cereal and plant-based food businesses and thus creating three wholly independent companies for its brands worldwide. The companies are temporarily being called Global Snacking Co., Plant Co., and North America Cereal Co.
Global Snacking Co. will essentially contain all of Kellogg’s business outside of North America alongside Kellogg’s current frozen food business. Kellogg Company’s three international regions (Europe; Latin America; and Asia Pacific, Middle East, and Africa) will primarily exist within this company. Global Snacking Co. will represent the clear majority of the Kellogg Company’s portfolio, with the constituent brands accounting for 80% of worldwide sales in 2021.
Plant Co. will be concentrating on plant-based foods with hopes to expand sales outside of its current North American market, though the business may be sold.
Finally, North America Cereal Co. is, as implied by the name, the company’s current North American cereal business. Kellogg Company says this company will likely spin off before Plant Co.
“Kellogg has been on a successful journey of transformation to enhance performance and increase long-term shareowner value. This has included re-shaping our portfolio, and today’s announcement is the next step in that transformation,” said Steve Cahillane, Kellogg Company’s Chairman and Chief Executive Officer.
“These businesses all have significant standalone potential, and an enhanced focus will enable them to better direct their resources toward their distinct strategic priorities. In turn, each business is expected to create more value for all stakeholders, and each is well positioned to build a new era of innovation and growth.”
The new companies will be operating independently and will each be publically traded, with shareholders of Kellogg Company being given shares in the new organisations.
Kellogg’s has created a website, unleashingourpotential.com, with a range of information about the new companies. The site is also intended to be a way of keeping track of the spin-offs, which are slated to be complete by the end of 2023.
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