Kellogg’s brand cereal
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Kellogg announced Tuesday that it plans to separate into three independent public companies.
The company will spin off its North American cereal business and plant-based division, which accounted for about 20% of its revenue last year. The remaining business includes its snacks, noodles, international cereal and North American frozen breakfast brands, which altogether represented about 80% of its 2021 sales.
“These businesses all have significant standalone potential, and an enhanced focus will enable them to better direct their resources toward their distinct strategic priorities,” CEO Steve Cahillane said in a statement.
Kellogg said it expects the tax-free spinoffs will be completed by the end of 2023. Names for the new companies have not been decided yet, and proposed management teams for the two spinoffs will be announced at a later date. Cahillane will stay on as chief executive of the company focused on global snacking.
Headquarters for the three businesses will remain unchanged. Both the North American cereal company and the plant-based food spinoff will be located in Battle Creek, Michigan. The global snacking company will keep its corporate headquarters in Chicago, with another campus in Battle Creek.
Read the full press release here.
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