Kellogg Company, the global food giant known for its cereals, snacks, and plant-based foods, announced in June 2022 that it would be splitting into three independent publicly traded companies concentrating on cereals, snacks and plant-based foods.
On Mar 15, 2023, K has announced the names of the two future companies that will be created as part of its planned separation. The company will be divided into two publicly traded entities, one focused on global snacking and the other on North American cereal. The spin-off is expected to be completed by the end of 2023, and while the company names will change, “Kellogg’s” brand will continue to be displayed on product packaging for both companies worldwide.
The whole idea of spin off is to better position both the businesses and to focus on their distinct strategic priorities, execute with increased agility and operational flexibility. As a result, this will realize improved outlooks for profitable growth, and shape distinctive corporate cultures, each rooted in Kellogg Company’s strong values.
Kellanova will be the brand name for the global snacking, international cereal and noodles, plant-based foods, and North American frozen breakfast business. Kellanova will be a global snacking powerhouse with a portfolio of popular, worldclass brands, including Pringles, Cheez-It, Pop-Tarts, Kellogg’s Rice Krispies Treats, MorningStar Farms, Incogmeato,Gardenburger, Nutri-Grain, RXBAR, and Eggo.
Additionally, Kellogg’s, Frosties, Zucaritas, Special K, Krave, Miel Pops, Coco Pops, Crunchy Nut, and other well-known international cereal brands will be managed by Kellanova.
The North American cereal business of K will be named WK Kellogg Co. WK Kellogg Co will be a popular food company in the U.S., Canada, and Caribbean, including Kellogg’s, Frosted Flakes, Froot Loops, Mini-Wheats, Special K, Raisin Bran, Rice Krispies, Corn Flakes, Kashi, and Bear Naked.
Kellanova will trade on the New York Stock Exchange (NYSE) under the ticker symbol “K.” Ticker and exchange information for WK Kellogg Co is expected to be announced in the coming months.
Steve Cahillane, Kellogg Company’s Chairman and Chief Executive Officer, and future Chairman and Chief Executive Officer of Kellanova. added, “Unveiling the names for the global snacking and North American cereal businesses is an exciting milestone for both companies as we progress towards unleashing their full potential as standalone businesses. Upon spin completion, we believe both businesses will be better positioned to focus on their distinct strategic priorities, execute with increased agility and operational flexibility, realize improved outlooks for profitable growth, and shape distinctive corporate cultures, each rooted in Kellogg Company’s strong values.”
The spin-off is expected to benefit both business by allowing them to focus on their respective key areas. In the initial years, the growth may slow down but there is great potential for growth in the later years.
– Aishwarya Dinesh (Crispidea Analayst)
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