Kellogg plans to split into three independent public companies, with its iconic brands coming to a crossroads in three areas — snacks, cornflakes and plant-based products — sending the company’s stock up 8% in premarket trading, but it finished the tour up 1.9 percent. % Just.
The announcement comes nearly a decade after Kellogg’s purchase of the Pringles brand, which inspired it to shift its focus toward the global snack industry as people buy more of the food between main meals of the day. Mondelez, the owner of the Oreo brand, is about to ride the market wave by offering more snacks and controlling smaller brands, as Mondelez revealed yesterday its $2.9 billion acquisition of Cliff Bar.
But sales of breakfast cereals or cornflakes have stagnated in the US as consumers seek breakfast out of the house or in a hurry as they seek variety in their morning foods, although the pandemic has briefly revived the cereal and cornflakes business as people stay in Homes, however, Kellogg still expects stable revenue growth for this division going forward in North America.
Kellogg has been considering spinning off its business since 2018 as a new business strategy, and its cornflakes and vegetable business accounts for 20% of its total revenue in North America, and the rest of the revenue comes from a huge segment that includes snacks, noodles and frozen breakfast foods, and Kellogg expects the division to be completed by the end of 2023.