Kellogg to split into three separate businesses

By Gwen Ridler

- Last updated on GMT

Kellogg is to split into three seperate companies covering global snacking, plant-based and US cereals
Kellogg is to split into three seperate companies covering global snacking, plant-based and US cereals

Related tags Cereal Ambient

Cereal and snacks giant Kellogg is to separate into three independent companies to better pursue its ‘distinct strategic priorities’.

Kellogg’s US, Canadian and Caribbean cereal and plant-based businesses will be spun off into two separate entities, representing 20% of its net sales in 2021.

The remaining business, which represented 80% of the manufacturer’s net sales in 2021, will focus on global snacking, international cereal and noodles, and North America frozen breakfast.

Kellogg’s three international regions – Europe, Latin America and Asia Pacific, Middle East and Africa – will remain mostly intact within the newly created Global Snacking business.   

Steve Cahillane will remain chairman and chief executive officer of Global Snacking Co. the proposed management teams for the other two spun off business has yet to be announced.

Three companies

The three companies, discussed under temporary names, will be:

  • Global Snacking Co: ​$11.4bn in net sales
  • North America Cereal Co: ​$2.4bn in net sales
  • Plant Co: ​$340m in net sales

Commenting on the move to split the business, chairman and chief executive Steve Cahillane said: “Kellogg has been on a successful journey of transformation to enhance performance and increase long-term shareowner value. This has included re-shaping our portfolio, and today's announcement is the next step in that transformation.

"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.”

Meanwhile, Bidfresh-owned Henson Meats and Campbell Brothers will now trade under one brand​ in a bid to expand the reach of both businesses across Britain.

The combined business — Campbell Brothers — will now deliver across England, Scotland and Wales operating from two sites with distribution links through their sister Bidfresh businesses nationwide.

Kellogg global snacking stats

  • Nearly 60% of its net sales come from global snacks, participating in growing categories and led by iconic, world-class brands including Pringles, Cheez-It, Pop-Tarts, Kellogg's Rice Krispies Treats, Nutri-Grain, ​and RXBAR​, among others.
  • Less than a quarter of its net sales come from cereal in international markets, featuring world-class brands such as Kellogg's, Frosties / Zucaritas, Special K, Tresor / Krave, Coco-Pops, and Crunchy Nut, ​among others.  By remaining with Global Snacking Co., this international cereal business provides scale, continuity, and growth for the company's Europe, Latin America, and AMEA Regions.

Related topics Ambient foods Operations

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