US foods giant Kellogg is splitting into three public companies by spinning off its North American cereal and plant-based divisions, the company said on Tuesday.
The maker of Rice Krispies, which also owns plant-based food maker MorningStar Farms, said its would distribute shares to Kellogg investors in the new entities.
Kellogg’s had net sales of $14.2bn (£11.6bn) in 2021, with $11.4 billion dollars (£9.3bn) generated by its snack division. Cereal, for which it is most famous, accounted for another $2.4bn (£1.96bn) in sales last year while plant-based sales totalled around $340m (£277 million)
The North American cereal branch is expected to be hived off first, with Kellogg aiming to finish both transactions by the end of next year. It added that the global snacking business was forecast to be a “higher-growth company than today’s Kellogg Company”.
“These businesses all have significant standalone potential, and an enhanced focus will enable them to better direct their resources toward their distinct strategic priorities,” said chief executive Steve Cahillane, who will become chairman and chief executive of the global snacking company.
