Kellogg’s Brand Cereal
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Kellogg’s announced on Tuesday that it plans to separate into three independent public companies.
The company will spin off its North American cereal business and plant-based division, which accounted for about 20% of its revenue last year. The rest of the business includes its snacks, noodles, international cereals and North American frozen breakfast brands, which together represent about 80% of its 2021 sales.
“All of these businesses have significant standalone potential, and an increased focus will enable them to better direct their resources toward their specific strategic priorities,” CEO Steve Cahillain said in a statement.
Kellogg said it expects the tax-free spinoff to be completed by the end of 2023. The names of the new companies have not yet been decided, and the proposed management teams for the two spinoffs will be announced at a later date. Kahilane will continue as chief executive of the company focused on global snacking.
The headquarters of all three businesses will remain unchanged. The North American Cereal Company and the plant-based food spinoff will both be based in Battle Creek, Michigan. The Global Snacking Company will place its corporate headquarters in Chicago, while another campus will be in Battle Creek.
Read the full press release here.
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