- Kelloggs will be divided into three companies focused on cereals, snacks and plant-based foods.
- CEO Steve Cahillane will become chairman and CEO of the global snacking company.
- Kellogg’s corporate headquarters will move from Battle Creek, Michigan, to Chicago.
Kelloggs will be divided into three companies. Kellogg Co., which makes Frosted Flakes, Rice Krispies, and Eggo; will be separated into three companies: cereals, snacks, and plant-based goods.
The spinoff of the yet-to-be-named cereal and plant-based foods companies; should be completed by the end of next year; according to Kellogg’s, which also owns MorningStar Farms, the plant-based food company.
Kellogg’s had $14.2 billion in net sales in 2021, with its snack sector bringing in $11.4 billion.
Cereal sales increased by $2.4 billion last year, while plant-based sales were around $340 million.
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“These firms all have significant standalone potential,” said CEO Steve Cahillane, “and a sharper focus; will allow them to better concentrate their resources toward their specific strategic priorities.”
Cahillane will lead the global snacking company as chairman and CEO.
The spin-offs have been approved by the board of directors.
Shareholders will get pro-rata shares in the two spin-offs; based on their Kellogg holdings.
Kellogg said it would look into other possibilities for its plant-based company; including as selling it.
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