Shares of the company, which began life in 1894 when W.K Kellogg
created Corn Flakes and became known around the world for its
breakfast cereals, jumped 7% in pre-market trading.
In recent years, however, the company has focused on building
its snacking portfolio, which includes its international cereals
and noodles, and North America frozen breakfast business. The
division brought in $11.4 billion in net sales in 2021,
accounting for 80% of its total sales.
Kellogg said its other two divisions - U.S., Canadian, and
Caribbean cereal and plant-based businesses - collectively
represented about 20% of its net sales in 2021.
The company said the names of the three companies would be
determined later.
The Battle Creek, Michigan-based company said snacks would be
the biggest focus among the three. It will be helmed by current
Kellogg top boss Steve Cahillane and include brands such as
Pringles, Cheez-It, and Pop-Tarts.
The company's North American cereal business accounted for about
$2.4 billion of its net sales in 2021 and includes popular
American breakfast cereal brands such as Kellogg's, Frosted
Flakes and Froot Loops.
"These businesses all have significant standalone potential, and
an enhanced focus will enable them to better direct their
resources toward their distinct strategic priorities," CEO
Cahillane said.
In the past two years major U.S. firms such as Johnson & Johnson
and General Electric Co said they were splitting their business.
(Reporting by Deborah Sophia in Bengaluru; Editing by Amy Caren
Daniel and Anil D'Silva)
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