Kellogg’s Announces division into three companies, With the vision of a greater strategic, operational and financial focus.
Kellogg has embarked on a successful transformation journey to improve performance and increase long-term shareholder value. This has involved reshaping our portfolio, and today’s announcement is the next step in that transformation,” said Steve Cahillan, Kellogg’s Chairman and CEO.
Although they will later name the three new companies, they say the most weight is the one they carry International snack food companywhich contributed close to 80% of revenue in 2021, of about $11.4 billion, which will focus on global snacks, international cereals, pasta and frozen breakfasts in North America. Some of the division’s brands will be: Pringles, Cheez-It, Pop-Tarts, Kellogg’s Rice Krispies Treats, Nutri-Grain and RXBAR.
for this part, North American Grain Companywith 20 percent of total revenue of approximately $2.4 billion, will focus on its grain and plant businesses in the United States, Canada and the Caribbean.
Its brands will be: Kellogg’s, Frosted Flakes, Froot Loops, Mini-Wheats, Special K, Raisin Bran, Rice Krispies, Corn Flakes, Kashi and Bear Naked. Finally, Plant Co., with net sales of approximately $340 million in 2021, will be a purely vegan company, anchored on the MorningStar Farms brand, as the company sees an opportunity to capitalize on a strong long-term category.
The latter has potential for Investing more to penetrate into North America and future international expansion.
All of these companies have significant independent potential, and their enhanced focus will allow them to better direct their resources toward their various strategic priorities. In turn, each company is expected to create more value for all its stakeholders, and each is well positioned to build a new era of innovation and growth,” Cahillan added.
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