Recently, Kellogg Company made waves in the market as it announced it is divvying up its portfolio into new public companies. The company will be spinning off its plant-based foods and cereal businesses into three independent public companies.
“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 Chairman and Chief Executive Officer. “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.”
According to the release, Kellogg’s Board of Directors has approved a plan to separate its North American cereal and plant-based foods businesses, via tax-free spin-offs. The new companies’ names are still under deliberation to better encapsulate their specialties, which include:
The company’s portfolio has transformed into one that has expanded geographically and shifted toward growing businesses. To achieve this, Kellogg has directed resources and investments toward growth categories and markets around the world; made several acquisitions and partnerships in emerging markets; and strengthened its snacks business through acquisitions, divestitures, and the freeing up of resources by exiting from direct-store delivery. The outcome of these strategic actions has been improved growth in recent years, with momentum sustained into 2022.
Click here for more information on these new spin-offs, and keep an eye out for Deli Market News to report the latest developments in specialty, deli, and dairy.