After much talk in the industry, Kellogg Company has given us an update on how it will move forward with its separation. The two independent, publicly traded companies, Kellanova and WK Kellogg Co, have been formally approved by the Board of Directors, and the separation will be completed on October 2, 2023.
“After more than a year of comprehensive planning and execution, we are more confident than ever that the separation will produce two stronger companies and create substantial value for shareowners,” stated Kellogg Company’s Chairman and Chief Executive Officer Steve Cahillane, who will remain Chairman and CEO of Kellanova. “We are looking forward to a new era as Kellanova, marked by a more growth-oriented portfolio, a renewed vision and strategy, and an energized organization grounded by a winning culture and our founder's values. These elements build on what has already been a track record of strong and consistent financial performance for the Kellanova portfolio.”
Kellanova will feature a growth-oriented portfolio that is weighted toward snacks and emerging markets and will be led by highly differentiated brands with considerable opportunity for expansion.
As noted in the release, WK Kellogg Co will focus and integrate its commercial strategy and execution, while modernizing its supply chain, all of which it expects will result in improved competitiveness, profitability, and cash flow.
“WK Kellogg Co has a 117-year legacy of innovation and the soul of a start-up, with an organization incredibly energized by our future,” remarked Gary Pilnick, who will serve as WK Kellogg Co’s Chairman and CEO following the separation. “As a standalone company, we will benefit immediately from the executional advantages of increased focus and end-to-end integration, while we modernize our supply chain and substantially improve our profit margins. We're on a profitable journey to take this great business to the next level.”
Learn more about the developments here.
Deli Market News will keep an eye on the radar for more industry updates.