Battle Creek, Mich. – Kellogg Company plans to separate its North American cereal and plant-based foods businesses, via tax-free spin-offs, resulting in three independent public companies: Global Snacking Co., North America Cereal Co. and Plant Co.
Global Snacking Co. will focus on global snacking, international cereal and noodles, and North America frozen breakfast categories.
North America Cereal Co. will focus on ready-to-eat cereal in the U.S., Canada and Caribbean with brands such as Kellogg’s, Frosted Flakes, Froot Loops, Mini-Wheats, Special K, Raisin Bran, Rice Krispies, Corn Flakes, Kashi and Bear Naked.
Plant Co. will be 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,” 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.”
After several years of transformation and improving results, the company believes it is the right time to separate these businesses so they may pursue their particular strategic priorities.
Kellogg said that, as independent companies, all three businesses will be better positioned to focus on their distinct strategic priorities, with financial targets that best fit their own markets and opportunities; execute with increased agility and operational flexibility, enabling more focused allocation of capital and resources; realize improved outlooks for profitable growth; and shape distinctive corporate cultures and rewarding career paths for employees.
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