(New York) The American breakfast champ will soon split: The Kellogg Corporation announced Tuesday that it will split its activities into three separate companies, with each one listed on the stock exchange.
Updated yesterday at 9:18 am.
The new structure will include a group that deals with international sales of snacks, cereals and instant noodles as well as frozen breakfast foods in North America, a company focused on selling cereals in the United States, Canada and the Caribbean, and finally, an entity that specializes in selling products of plant origin.
Kellogg said the new companies will be called “Global Snacking Co.” and “North America Cereal” and “Planet Co.” Noting that these are temporary names.
The company’s internationally oriented activities last year accounted for more than 80% of the group’s sales (US$11.4 billion), those of the North America division about 17% (US$2.4 billion) while meat substitutes totaled less than 3% of Kellogg’s revenue. . , or 340 million US dollars.
Kellogg is targeting the end of 2023 to complete the separate split of North America Ceral Co. and Plant Co. From the main group, subject to approval by US regulators.
The group, known for its cornflakes, frosties, honey pops and Special K cereal, said the companies would keep their headquarters.
The North American Grain Sales Company and the Vegetable Products Sales Company will thus be established in Battle Creek, Michigan. The globally oriented company will be headquartered in Chicago, Illinois, with a campus in Battle Creek.
Kellogg’s stock, which is listed on the New York Stock Exchange, was up about 6% at the time of the announcement in electronic trading before Wall Street opened. The stock finally ended the day 1.95% higher, at $68.86.
Each of the new entities has “significant potential independently, and an enhanced focus will allow them to better direct their resources toward their identified strategic priorities,” Kellogg CEO Steve Cahillan said in a statement.
Each company’s goal will be to create additional value for all stakeholders and each of them is well positioned to build a new era of innovation and growth.
Steve Cahillan, CEO of Kellogg
The history of Kellogg, a brand popular with millions of homes, dates back to 1894, when American industrialist W. Kellogg founded the Corn Flakes Company before opening the Battle Creek Toasted Corn Flake Company in 1906, later renamed The Kellogg Company.
Founded in 180 countries, the agri-food giant produces, in addition to its popular cereals, Pringles potato chips, Cheese-It crackers, filled pop-tarts, as well as Ego’s frozen waffles.
She also owns vegan brands, including MorningStar Farms, Gardenburger, and Kashi.
It had revenues of $14.2 billion in 2021 and annual profits of $1.8 billion.
Other major US companies have announced their split in recent months. That was the case last November for General Electric and Johnson & Johnson’s drug group.
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