Famous breakfast food company Kellogg announced plans to split into three companies on Tuesday (21st June) becoming the newest US corporate giant to do so.
The announcement increased the stock price of the company.
The company, which is best known for such well-known brands as Corn Flakes and Pop-Tarts, will twist off its North American cereal business in the new company, with Kellogg’s plant-based businesses being housed in a separate venture.
The remaining company will be aligned as an emerging market-focused, higher-growth snack company. About 80% of Kellogg’s $14.1 billion in 2021 revenues came from this unit, which will also house the company’s international cereal business.
On a conference call with analysts, Kellogg Chief Executive Steve Cahillane stated, “This will activate and create more opportunities for all three businesses.”
Global Snacking Co., North America Cereal Co., and Plant Co. will be the initial names of the unnamed organisations. The creation of the latter two will occur through tax-free spin-offs.