FMCG giant Kellogg that owns brands from Rice Crispies to Pop Tarts is to separate into three independent companies, by spinning off its US, Canadian, and Caribbean cereal and plant-based businesses, which collectively represented approximately 20% of its net sales last year.
The spinoff of the yet-to-be-named cereal and plant-based foods companies is expected be completed by the end of next year. It will include the MorningStar Farms range of goods which is one of America’s most famous names in vegan and meat-free products.
The second company is is named ‘North America Cereal Co’, which will include the company’s cereal businesses in the United States, Canada and the Caribbean, including internationally known brands such as Froot Loops and Special K.
The third part of the business is called ‘Global Snacking Co”, and will comprise of Kellogg cereal brands outside North America as snack brands including Pringles.
It said that the proposed separations “create greater strategic, operational, and financial focus for each company and its stakeholders”, and will build on the company’s “current momentum”.
“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 chairman and CEO.
“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.”