Kellogg Company Separating Into 3 Businesses
Kellogg Company is dividing itself in three.
The No. 48 consumer goods company is spinning off its North American cereal and plant-based foods businesses to result in three independent public companies. The names of the three companies are TBD, but they’ll be known for now as:
Global Snacking Co.: With about $11.4 billion in net sales, this will include global snacking, international cereal and noodles, and North America frozen breakfast.
North America Cereal Co.: With about $2.4 billion in net sales, this will include cereal in the U.S., Canada, and Caribbean.
Plant Co., With about $340 million in net sales, this will be a pure-play plant-based foods company, anchored by the MorningStar Farms brand. The company also intends to invest further in North America penetration and future international expansion.
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"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 CEO, in a statement. "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."
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As independent companies, the company’s will have financial targets that best fit their own markets and opportunities, while execution agility will increase thanks to more focused capital and resource allocation.
Internally, the companies will also have their own distinct corporate culture and career paths.
Kellogg Company's three international regions – Europe, Latin America, and Asia Pacific, Middle East, and Africa – will remain almost entirely intact within Global Snacking Co., the company said, with Cahillane remaining chairman and CEO of Global Snacking Co.
The management team for North America Cereal Co. and Plant Co will be announced at a later date.
The company expects the North America Cereal Co. spin-off to precede that of Plant Co., with both targeted to be completed by the end of 2023.
North America Cereal Co. and Plant Co. will both remain headquartered in Battle Creek, Mich.. Global Snacking Co. will maintain dual campuses in Battle Creek and Chicago, with its corporate headquarters located in Chicago.
Kellogg Company's three international regions' headquarters in Europe, Latin America, and AMEA will remain in their current locations.
