Kellogg's: snap, crackle and pop on plans to split into 3

(CercleFinance.com) - Kellogg's announced on Tuesday that it plans to split into three listed companies through the spin-off of its North American cereal business and its plant-based food business.


The first - which is currently called North America Cereal Co. - will combine the company's operations in the US, Canada and the Caribbean under brands such as Kellogg's, Frosted Flakes, Froot Loops, Mini-Wheats and Special K.

This group has annual sales of around 2.4 billion dollars.

The second group, called "Plant Co." and mainly based on the MorningStar Farms brand of plant products, is a lot smaller, with annual sales of 340 million dollars.

The remaining 80% of the group, which makes annual sales of 11.4 billion dollars, will be combined under the "Global Snacking Co." banner, which will include snacks, international cereal brands, instant noodles and frozen breakfast businesses.

The demerger, which is expected to take place before the end of 2023, is expected to enhance shareholder value by creating three companies that are better positioned strategically, operationally and financially.

Following these announcements, Kellogg's shares were up over 7% in pre-market trading on Tuesday.


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