US Cereal-Manufacturing Giant Kellogg to Split Into 3 Independent Companies

The three different companies would focus on cereals, snacks and plant-based foods, the company said.

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United States (US) cereal manufacturing giant Kellogg said on Tuesday, 21 June, that it was splitting into three different companies, which would independently focus on cereals, snacks and plant-based foods.

The company, which is popularly known in the market as Kellogg's, said that the spin-off will be completed by the end of 2023, adding that the names of the three firms would be decided at a later stage.

The Michigan-based company said that snacks would be the top priority among the three companies, and will be led by current Kellogg Chief Executive Officer (CEO) Steve Cahillane. It would also include popular brands, like Pringles, Cheez-It, and Pop-Tarts, Reuters reported.

Kellogg's North American cereal business accounted for around $2.4 billion of its net sales from last year, which included brands such as 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," Cahillane said.

After the news of the split came to light, shares of the company rose by 7 percent in pre-market trading.

Kellogg was started in 1894 when WK Kellogg invented cornflakes and become famous across the globe because of its breakfast cereals.

(With inputs from Reuters.)