Kellogg Company announced that it has approved a plan to separate its North American cereal and plant-based foods businesses, via tax-free spin-offs, resulting in three independent public companies.
“Global Snacking Co.”, with about USD11.4bn in net sales, will be a leading company in global snacking, international cereal and noodles, and North America frozen breakfast. “North America Cereal Co.”, with about USD2.4bn in net sales, will be a leading cereal company in the US, Canada, and Caribbean, with a portfolio of iconic brands and compelling opportunities for investment and profit growth.
Finally, “Plant Co.”, with about USD340m in net sales, will be a profitable, pure-play plant-based foods company, anchored by the MorningStar Farms brand, with a significant opportunity to capitalize on strong long-term category prospects by investing further in North America penetration and future international expansion, according to a press release.
North America Cereal Co. and Plant Co. will both remain headquartered in Battle Creek, Michigan. Global Snacking Co. will maintain dual campuses in Battle Creek and Chicago, Illinois, with its corporate headquarters located in Chicago. Kellogg Company’s three international regions’ headquarters in Europe, Latin America, and AMEA will remain in their current locations.