“These businesses all have significant standalone potential, and an enhanced focus will enable them to better direct their resources toward their distinct strategic priorities,” he said. In a statement discussing the three new businesses on Tuesday, Callihane said that they will be stronger on their own. It’s a way to clarify each entity’s goals and, hopefully, allow each to flourish. (KHC) made a similar move when it spun off its North American grocery business, creating a company we now know as Mondelez Kellogg has been leaning into its snack business.
“Cereal is stable, and there’s a market for it.” But “other parts of portfolio … have better future prospects,” she added. But that doesn’t mean it’s the most promising part of the company. “Cereal is Kellogg’s legacy business,” said Emilie Feldman, management professor at Wharton business school. It is the largest of the three new companies by far, and it will retain current Kellogg CEO Steve Cahillane as chief executive. The snacking business - not its calling-card cereal company - is the crown jewel. The remaining, largest business includes Kellogg’s global snacking products, like Pringles, Cheez-It and Pop-Tarts, as well as international cereals and noodles and North American frozen breakfast products.
Kellogg announced Tuesday that it is splitting into three separate companies, spinning off its US, Canadian and Caribbean cereal businesses into one group and its plant-based food businesses, including Morningstar Farms, into another. For years, Kellogg’s has been synonymous with Froot Loops, Frosted Flakes, Special K and other cereals.
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