Kellogg is planning to separate its North American cereal and plant-based foods businesses, resulting in three independent public companies, each better positioned to unlock their full standalone potential. The three companies will be:
Global Snacking Co., which is expected to enhance its leadership position in the global snacking, international cereal and noodles, and North America frozen breakfast categories, by focusing investments and capital toward building upon its strong growth momentum and profitability. Kellogg’s Europe, Latin America, and Asia Pacific, Middle East, and Africa regions will remain almost entirely intact within this company. Steve Cahillane will remain its chairman and chief executive officer.
North America Cereal Co., a leader in cereal in the U.S., Canada, and Caribbean, with more than a century of operational success, will be an independent business. As a standalone company, it will have greater strategic focus and operational flexibility, and will direct capital and resources toward unlocking growth, regaining category share, and restoring and expanding profit margins. The proposed management team will be announced at a later date.
Plant Co., which will be an independent business through a tax-free spin-off, while also exploring other strategic alternatives, including a possible sale. Anchored by the leading MorningStar Farms brand, Plant Co. will be a pure-play, plant-based foods company. The proposed management team will be announced at a later date.
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“Kellogg has been on a successful journey of transformation to enhance performance and increase long-term shareowner value,” says Steve Cahillane, Kellogg’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.”