Why Kellogg is launching a plant-based food business

Food giant Kellogg is turning into three distinct, as yet undisclosed, companies focused on plant-based foods, grains and snacks. The company decided to divide its business into these key segments to focus on achieving innovation and growth in each of them.

“Kellogg has been on a successful transformation journey to enhance performance and increase long-term shareholder value,” Steve Cahillan, Kellogg’s Chairman and CEO, said in a statement. “This has included reshaping our portfolio, and today’s announcement is the next step in that transformation.”

Going forward, Kellogg will operate these three tax-exempt subsidiaries as independent public companies, each with their own corporate cultures and strategic priorities, with the goal of maximizing the potential of its plant-based food, grain and snack segments. Segmenting companies in this way allows them to set their own growth goals relative to their markets and brings more flexibility to each of them.

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. In turn, each company is expected to create more value for all its stakeholders, and each is well positioned to build a new era of innovation and growth,” Cahillan said.

MorningStar Farms

Kellogg’s new vegan food company

Under the new split, Kellogg’s is temporarily calling its plant-based food business “Plant Co.” , which is currently valued at $340 million. This company will be based on the MorningStar brand from Kellogg, which it acquired 20 years ago and has expanded significantly in recent years.

To compete with emerging vegan meat technologies, Kellogg first launched the Incogmeato MorningStar line in 2019 with the “next generation” of vegan burger patties, chicken nuggets, and chicken tenders before expanding with two flavors of soy-based vegan sausages in 2020. Since then The brand continued trends and innovations in vegan products, and in 2021 launched vegan chicken tenders that mimic their animal counterpart. Featured in the popular Atlanta-based Slutty Vegan menu, the rusk tenders are made using a special technology that creates a recognizable texture indistinguishable from chicken meat.

Incogmeato has also previously partnered with Disney (vegan mickey chicken nuggets) and Kellogg-owned Eggo (a limited-edition vegan chicken and waffle box) to create co-branded vegan meat products.

Vegetables, eggs, chicken, waffleKellogg Company

As an independent company, Plant Co. can. Focus on capturing a greater market share for the botanical category and further expanding its reach across target regions, which are currently the United States, Canada and the Caribbean.

The second independent company, tentatively called the North American Cereal Company, is currently valued at $2.4 billion and includes brands such as Kellogg’s, Frosted Flakes, Froot Loops, Mini-Wheats, Special K, Raisin Bran, Rice Krispies, Corn Flakes, Kashi, And bear naked. The final part, which Kellogg’s company calls “Global Snacking Co.” Currently, it’s valued at $11.4 billion and includes brands such as Pringles, Cheese It, Pop Tarts, Kellogg’s Rice Krispies Treats, Nutri-Green and Arxbar.

The North American Cereal Co. headquarters will remain. and Plant Co. in Battle Creek, MI while Global Snacking will maintain two campuses in Battle Creek and Chicago, and is headquartered in Chicago. The separate works are expected to be completed by the end of 2023.

Plant-dependent transformation into macronutrients

Kellogg has been in business for 116 years, and its restructuring is part of the growing trend of food giants adding subsidiaries to capture consumer interest in plant-based foods. Canadian meat giant Maple Leaf Foods did just that in 2017 when it acquired Lightlife Foods and Field Roast Grain Meat Co for $140 million and $120 million, respectively. Soon after, the company created Greenleaf Foods as a subsidiary focused solely on growing its plant-based business.

Danone took a similar approach when it acquired White Wave Foods — which operates the Silk, So Delicious, Alpro and Vega brands — in 2016 for $12.5 billion. Since then, Danone has made significant inroads into the dairy-free space with its own launches under brands such as Oikos and investments in innovation that have resulted in new plant-based milk products blended under its So Delicious and Silk brands.

Vegetarian Newsfollow your heart

Last year, Danone built up its vegan portfolio by acquiring Earth Island, the company behind the maker of Vegenaise Follow Your Heart. The acquisition allows Danone to build on its goal of increasing its global factory sales to $6 billion by 2025.

Kraft Heinz is also looking to enter this space, but through a strategic partnership with TheNotCompany, a Chilean startup that is using artificial intelligence to create plant-based alternatives similar to their animal-based counterparts. Under this partnership, the two companies will operate Kraft Heinz Not, which integrates Kraft Heinz’s extensive industry knowledge, communications, and portfolio of iconic brands with NotCo technologies. The partnership is expected to lead to new vegan products and potential vegan versions of existing Kraft Heinz products such as boxed macaroni and cheese, Lunchables, and more. Overall, the goal of this joint venture is to “reshape the food landscape and set a new standard for plant-based innovation.”

For the latest botanical news, read:
A new study has found that a plant-based diet rich in legumes can help you lose weight
Did Gordon Ramsay just make a vegan eggplant steak?
The dairy-free milkshake arrives at all 220 . Smashburger locations

It has just been launched! Get the 10 Easy Summer Vegetables Recipe Book as a free instant download.

Get the guide

Leave a Reply

Your email address will not be published.