Kellogg’s US, Canadian and Caribbean cereal and plant-based businesses will be spun off into two separate entities, representing 20% of its net sales in 2021.
The remaining business, which represented 80% of the manufacturer’s net sales in 2021, will focus on global snacking, international cereal and noodles, and North America frozen breakfast.
Kellogg’s three international regions – Europe, Latin America and Asia Pacific, Middle East and Africa – will remain mostly intact within the newly created Global Snacking business.
Steve Cahillane will remain chairman and chief executive officer of Global Snacking Co. the proposed management teams for the other two spun off business has yet to be announced.
The three companies, discussed under temporary names, will be:
- Global Snacking Co: $11.4bn in net sales
- North America Cereal Co: $2.4bn in net sales
- Plant Co: $340m in net sales
Commenting on the move to split the business, chairman and chief executive Steve Cahillane said: “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.
“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.”