The Kellogg Company, maker of Frosted Flakes, Rice Krispies and Eggo, will split into three companies focused on cereals, snacks and plant foods.
The Kellogg Company, which also owns MorningStar Farms, a plant-based food maker, said Tuesday that production of the as-yet-to-be-named plant-based food companies is scheduled to be completed by the end of next year.
“All of these companies have great potential in their own right, and an enhanced focus will enable them to better direct their resources toward their distinct strategic priorities,” Kellogg CEO Steve Cahillan said in a statement. “In turn, each company is expected to create more value for all stakeholders, and each is well positioned to build a new era of innovation and growth.”
Kellogg’s cereal and snack sales are $2.4 billion and $11.4 billion, respectively, according to the company; It has a turnover of plant foods of $340 million.
The grain and plant food companies will remain headquartered in Battle Creek, Michigan. The snack company will maintain dual campuses in Battle Creek and Chicago, Illinois, and be headquartered in Chicago.
Kellogg’s three international headquarters in Europe, Latin America, Asia and the Middle East will remain in their current locations.
Companies are beginning to split at an accelerating pace, including General Electric, IBM and Johnson & Johnson, but such splits are much rarer for food producers. The last major split in the sector was in 2012, when Kraft split to create Mondelez.
“This split appears similar to the Kraft-Mondelez separation where higher-growth assets (in this case ‘global snacks’) are removed from slow-growing assets (‘North American grains’), equities analyst Adam Crisavoli of Vital Knowledge said in a report.