Food giant The Kellogg Company has recently announced plans to restructure the company by splitting it into three companies in the US.
The firm is planning to combine all of its cereal operations in North America into one singular entity. Similarly, Kellogg is planning to separate its plant-based and snacking businesses into separate companies as well.
The reasoning the company provided for the decision to split is that “the proposed separations create greater strategic, operational and financial focus for each company and its stakeholders and will build on Kellogg’s current momentum”.
Kellogg’s CEO, Steve Cahillane, said: “These businesses all have significant stand-alone 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”.
The current names of the to-be companies are North America Cereal Co., Plant Co., and Global Snacking Co. and the split is expected to be completed by late 2023. Global Snacking Co. will overtake the control over the international regions of Kellogg after the split is in an “almost entirely intact” state.
Sources: Just Food