Kellogg Company Split: Why is Kellogg splitting up?

Kellogg said on Tuesday, June 21, that it would split into three separate companies, sectioning its iconic brands into snacking, cereal, and plant-based businesses. The tax-free spinoffs are expected to be completed by the end of 2023.

Kellogg was founded in 1894 by W.K Kellogg and became famous around the world for its breakfast cereals. The company’s stock soared as high as 8% in premarket trade but closed up only 1.9%

The announcement comes a decade after Kellogg’s $2.7 billion purchase of Pringles, which indicated the company’s shift to focusing on the global snacks industry as people eat more frequently between meals.

Kellogg, along with rivals such as Frito-Lay owner PepsiCo and Oreo cookie owner Mondelez, has embraced the trend by developing new foods and acquiring smaller companies.

The names of the new firms have yet to be determined, and the proposed management teams for the two spinoffs will be announced in the first quarter of next year.

Cahillane will remain as CEO of the global snacking company. That division will contain brands like Pringles, Cheez-It, Pop-Tarts, and RXBAR

 

 

 

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