Kellogg splitting into 3 companies with focus on snacks, plant-based

Kellogg Co. has announced that it will split its operations into three companies focused on cereals, snacks, and plant-based foods.

Kellogg, which also owns MorningStar Farms, the plant-based food maker, said on June 21 that the spinoff of the yet-to-be-named cereal and plant-based foods companies should be completed by the end of next year.

The 116-year-old company’s name is most synonymous with breakfast cereal but it has moved far beyond that scope. The pandemic drove increased demand for packaged goods and snack foods, and plant-based foods also have gained in popularity in recent years.

Kellogg already has a significant footprint in both of those camps.

Combined, Kellogg’s plant-based division and North American cereal business accounted for about one-fifth of its revenue last year. The remaining business includes its snacks, noodles, international cereal, and North American frozen breakfast brands.

North America will represent nearly half of the new snack company’s revenue, reports CNBC, and that company will look to add to its portfolio through acquisitions.

Meanwhile, Kellogg’s plant-based division will use Morningstar Farms as its anchor brand.

The company’s corporate headquarters will move from Battle Creek, Mich. to Chicago, but it will maintain dual headquarters in both cities for its snack company, which already makes up about 80 per cent of current sales.

Kellogg’s three international headquarters in Europe, Latin America, and AMEA will remain in their current locations.

Splits of this magnitude are rare for food producers, and the last major split in the sector was in 2012, when Kraft split to create Mondelez.


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