Kellogg's Corn Flakes, owned by Kellogg Company, are seen for sale in a store in Queens, New York City, U.S., February 7, 2022. Reuters/Andrew Kelly/File Photo
Kellogg Co. said it will split into three independent companies, focused on global snacking, North American cereals and plant-based foods.
Breaking up its portfolio will give each business a better opportunity to grow, the Battle Creek, Michigan-based company said in a statement Tuesday. Kellogg shares surged in early trading.
"These businesses all have significant standalone potential, and an enhanced focus will enable them to better direct their resources toward their distinct strategic priorities,” Chief Executive Officer Steve Cahillane said in the statement.
The split is occurring in part because the company has expanded well beyond its history as the maker of Frosted Flakes, Froot Loops and other breakfast cereals.
The global snack business had sales of about $11.4 billion last year, while the young plant-based foods operations accounted for about $340 million. The North American cereal unit’s sales were about $2.4 billion.
Kellogg shares jumped 8.1% as of 7:19 a.m. before regular trading in New York. The stock had gained 4.8% this year through Friday’s close, far outpacing the 23% decline in the S&P 500.
