(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.
Posted at 8:23 am
Updated at 9:18 am.
The new structure will include a group that handles 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 plant-based products.
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 revenue ($11.4 billion), those of the North America division nearly 17% (2.4 billion) while meat alternatives totaled less than 3% of Kellogg’s revenue, Or $340 million.
Kellogg aims in late 2023 to complete the spin-off of North America Ceral Co., Ltd. and Plant Co. From the core 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 and Plant Sales Company will therefore be based 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, rose about 6% in electronic trading before Wall Street opened.
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 all of them are well positioned to build a new era of innovation and growth,” Mr. Cahillan continued.
The history of Kellogg, a brand popular with millions of families, dates back to 1894, when American industrialist W. Kellogg created the “Corn Flakes” company before opening the “Battle Creek Toasted Corn Flake Company” in 1906, later renamed the “Corn Flakes Company” Kellogg”.
Founded in 180 countries, the agri-food giant produces, in addition to its popular cereal, Pringles potato chips, cheese crackers, waffle-stuffed pop tarts, and 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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