Foodservice

Kellogg aims to spinoff 3 public companies

Photo by istock.com

June 21, 2022

The Kellogg Co. is planning to separate its North American cereal and plant-based food businesses into three independent companies that have yet to be named.

The U.S., Canadian and Caribbean businesses collectively represented about 20% of the company's net sales in 2021, according to a press release. The remaining business, which represented about 80% of net sales in 2021, is focused on global snacking, international cereal and noodles, and North America frozen breakfast.

The strategy aims to further enhance the performance and value for the company's portfolio, according to the release, and creates greater strategic, operational and financial focus.

The three companies would be:

• "Global Snacking Co.," with about $11.4 billion in net sales, and North America frozen breakfast.
• "North America Cereal Co.," with about $2.4 billion in net sales.
• "Plant Co.," with about $340 million in net sales, a pure-play plant-based foods company, anchored by the MorningStar Farms brand.

"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," Steve Cahillane, Kellogg Company chairman and CEO, said in the release. "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."