Kellogg Announces Separation Into Several Businesses

The Kellogg Company plans to separate into three independent companies, by spinning off its U.S., Canadian, and Caribbean cereal and plant-based businesses, which collectively represented approximately 20% of its net sales in 2021.

The remaining business, which represented about 80% of net sales in 2021, is focused on global snacking, international cereal and noodles, and North America frozen breakfast

The three companies, whose names will be determined later, would be the following:

“Global Snacking Co.”, with about USD11.4bn in net sales, will be a leading company in global snacking, international cereal and noodles, and North America frozen breakfast, with iconic, world-class brands and strong underlying growth momentum and profitability;

“North America Cereal Co.”, with about USD2.4bn in net sales, will be a leading cereal company in the U.S., Canada, and Caribbean, with a portfolio of iconic, world-class brands and compelling opportunities for investment and profit growth; and

“Plant Co.”, with about USD340m in net sales, will be a leading, profitable, pure-play plant-based foods company, anchored by the MorningStar Farms brand, with a significant opportunity to capitalize on strong long-term category prospects by investing further in North America penetration and future international expansion.

The planned separations will result in a Global Snacking Co. that is expected to enhance its leadership position in the global snacking, international cereal and noodles, and North America frozen breakfast categories, by focusing investments and capital toward building upon its strong growth momentum and profitability.

Kellogg Company’s three international regions – Europe, Latin America, and Asia Pacific, Middle East, and Africa (“AMEA”) – will remain almost entirely intact within Global Snacking Co.  Steve Cahillane will remain Chairman and Chief Executive Officer of Global Snacking Co.