MCG giant Kellogg, which owns brands from Rice Crispies to Pop Tarts, will split into three independent companies, by splitting the grain and plant-based businesses of the United States, Canada and the Caribbean, which account for approximately 20% of their total net sales last year.
The birth of the unnamed plant- and grain-based food companies is expected to be completed by the end of next year. It will include the merchandise range of MorningStar Farms, one of America’s best-known names in vegan and meat-free products.
The second, named ‘North America Cereal Co’, will include the company’s cereal businesses in the US, Canada and the Caribbean, including internationally renowned brands such as Froot Loops and Special K.
The third part of the business is called ‘Global Snacking Co’, and will include Kellogg cereal brands outside of North America as snack brands include Pringles.
It says the proposed breakdowns “create greater strategic, operational and financial focus for each company and its stakeholders”, and will build on the company’s “current dynamics”. company.
“Kellogg has had a successful transformation to enhance performance and increase long-term equity holder value. This has included reshaping our portfolio and today’s announcement is the next step in that transition,” said Steve Cahillane, President and CEO of Kellogg.
“All of these businesses have significant potential for independence, and the enhanced focus will allow them to better direct their resources toward their unique 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.”