The Kellogg Company, operating as Kellogg’s, is going to become three different entities in a deal slated to be completed in 2023. The American food manufacturer said that this move will create a “greater strategic, operational, and financial focus” for each of the new firms. Moreover, it said that the new companies will be “better positioned to unlock their individual potential”. CEO Steve Cahillane explained that “enhanced focus will allow all 3 firms to better direct their resources toward separate strategic goals”. As a result, he continued “each business will provide more value for the stakeholders”.
Kellogg’s 3 Companies
Kellogg’s has only given temporary names to new companies but gave details about what each of them would focus on. Investors seem happy about the development because according to reports, the manufacturer’s stock has gone up by 8% in pre-market trading to 73.11 USD per share. Currently, it is standing at 69.12 USD.
Global Snacking Co.
The first company will manufacture and distribute some of the brand’s most popular snacks and international cereals. The snacks include Pringles, Pop-Tarts, Cheez-It, Rice Krispies Treats, and Nutri-Gain. Whereas, international cereals include Crunchy Nut, Coco-Pops, Special K, and Tresor / Krave. The brand said that this company will be worth around 11.4 billion USD in net sales based on data from 2021.
North America Cereal Co.
With this company, Kellogg’s plan to sell its trademark ready-to-eat cereals in the US, Canada, and the Carribean. The cereal products this company would focus on include Corn Flakes, Froot Loops, Special K, Forsted Flakes, Rice Krispies, Raisin Bran, Mini-Wheats, Kashi, and Bear Naked. As per the brand, this company will be worth 2.4 billion USD, which is also based on the net sales from the last year.
The final company will deal in plant-based food with Kellogg’s division, MorningStar Farms. It produces vegetarian food and most of thier products are a plant-based version of traditional meat foods. It will operate in the US, Canada, and the Carribean. The manufacturer said that its value will be 340 million USD based on the sales it made in 2021.
Separate companies also come with separate headquarters. North America Cereal Co. and Plant Co. will remain in the current headquarters based in Michigan. Whereas, the main HQ of Global Snacking Co. will be located in Chicago while sharing the Michigan one as well.