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Kellogg Board Approves Separation Into 2 Companies

The approval to split into Kellanova and WK Kellogg Co was given to create two more focused companies, each with its own strong financial outlook.

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Kellogg’s board of directors has approved the separation of Kellogg Company into two independent, publicly traded companies—Kellanova and WK Kellogg Co—as of October 2, 2023.

Kellanova will have a growth-oriented portfolio weighted toward snacks and emerging markets, with differentiated brands that offer a sizable opportunity for expansion. It is projected to generate net sales of approximately $13.4 to $13.6 billion. WK Kellogg Co will integrate its commercial strategy and execution, while modernizing its supply chain, building on its iconic brands and its leading share position in North American cereal. It is projected to have net sales of approximately $2.7 billion by the end of 2026, through supply chain modernization and a top-line trajectory.


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“WK Kellogg Co has a 117-year legacy of innovation and the soul of a start-up, with an organization incredibly energized by our future,” remarks Gary Pilnick, who will serve as WK Kellogg Co’s chairman and chief executive officer following the separation. “As a standalone company, we will benefit immediately from the executional advantages of increased focus and end-to-end integration, while we modernize our supply chain and substantially improve our profit margins. We’re on a profitable journey to take this great business to the next level.”

“We are looking forward to a new era as Kellanova, marked by a more growth-oriented portfolio, a renewed vision and strategy, and an energized organization grounded by a winning culture and our founder’s values,” says Kellogg Company Chairman and Chief Executive Officer Steve Cahillane, who will remain chairman and chief executive officer of Kellanova.  “These elements build on what has already been a track record of strong and consistent financial performance for the Kellanova portfolio.”


 


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