AMERICA – Kellogg, an American multinational snack and cereal company, is splitting its businesses into two companies: “Kellanova” and “WK Kellog Co.”
Adopting a Latin word Nova, Kellanova will oversee the company’s snacking and plant-based business while the North American cereal business will be known as WK Kellogg Co, after the company’s original founder.
According to a statement from Kellogg, Kellanova will be a business focused on “global snacking,” including international cereal and noodles, plant-based foods, and North American frozen breakfast.
It will also steward a suite of iconic brands, including Pringles, Cheez-It, Pop-Tarts, NutriGrain, RXBAR, and others, along with plant-based labels like MorningStar Farms.
On the other hand, WK Kellogg Co. will take over popular cereal brands including Kellogg’s, Frosted Flakes, Froot Loops, Mini-Wheats, Special K, Raisin Bran, Rice Krispies, Corn Flakes, Kashi, Bear Naked.
However, the notice confirmed that products under both brand names will still carry Kellogg’s logo.
The move follows the company’s statement in June 2022, where Kellogg announced plans to fragment into three companies to ramp up its ability to be nimbler and more industry-focused and leading.
The multinational company wanted to create three separate companies, one, for snacks, one for cereals, and one for plant-based products. However, last month it reversed its strategy and said its plant-based meat business will instead be incorporated under Kellanova.
The company said WK Kellogg Co will remain headquartered in Battle Creek while Kellanova will maintain dual campuses in Battle Creek and Chicago, with its corporate headquarters located in Chicago.
Positively, the company confirmed that no employees will be asked to relocate as a result of the changes, and executives of Kellanova will maintain offices in both locations.
“Upon spin completion, we believe both businesses will be better positioned to focus on their distinct strategic priorities and execute with increased agility and operational flexibility,”said Kellogg CEO Steve Cahillane
In addition, the companies are expected to realize improved outlooks for profitable growth and shape distinctive corporate cultures, each rooted in Kellogg Company’s strong values.
Kellanova will also retain the ticker symbol ‘K’ on the New York Stock Exchange, while the ticker for WK Kellogg Co will be announced in the coming months.
For all the latest food industry news from Africa and the World, subscribe to our NEWSLETTER, follow us on Twitter and LinkedIn, like us on Facebook and subscribe to our YouTube channel
