Kellogg to split into 3 companies in growth push

Kellogg said it will split into three independent companies, sparking a rally in the food conglomerate’s shares. The maker of Froot Loops said the companies would focus on global snacking, North American cereals and plant-based foods – giving each greater autonomy and room for growth. The breakup will occur through two tax-free spinoffs, the US-based company said on Tuesday.
The split reflects Kellogg’s expansion well beyond its roots as a maker of breakfast cereal. The pandemic drove heavier demand for packaged goods and snack foods, while plant-based foods also have gained in popularity in recent years. Kellogg expects to separate the cereal unit first, with both transactions completed by 2023-end.
The global snack business had sales of about $11.4 billion last year, while the young plant-based-foods operations accounted for $340 million. The North American cereal unit’s sales were $2.4 billion.