Kellogg to split into three companies

Kellogg Company will separate its North American cereal and plant-based foods businesses, via tax-free spin-offs, resulting in three independent public companies. The three companies with temporary names are:

• Global Snacking Co. that’ll focus on global snacking, international cereal and noodles, and North America frozen breakfast categories;
• North America Cereal Co. will specialize in ready-to-eat cereal in the U.S., Canada, and Caribbean, and its portfolio comprises Kellogg’s, Frosted Flakes, Froot Loops, Mini-Wheats, Special K, Raisin Bran, Rice Krispies, Corn Flakes, Kashi and Bear Naked; and
• Plant Co., which will be anchored by the MorningStar Farms brand.

“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,” said Steve Cahillane, Kellogg Company’s chair and CEO. “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.”

After several years of transformation and improving results, the Company believes it is the right time to separate its businesses so they may pursue their particular strategic priorities.

As independent companies, all three businesses will be better positioned to:

• focus on their distinct strategic priorities, with financial targets that best fit their own markets and opportunities;
• execute with increased agility and operational flexibility, enabling more focused allocation of capital and resources in a manner consistent with those strategic priorities;
• realize improved outlooks for profitable growth; and
• shape distinctive corporate cultures.

North America Cereal and Plant will remain headquartered in Battle Creek, MI. Global Snacking will maintain dual campuses in Battle Creek and Chicago, Ill., with its corporate headquarters located in Chicago.  Kellogg Company’s three international regions’ headquarters in Europe, Latin America, and AMEA will remain in their current locations.