Kellogg's Decision to Split Into 3 Companies Sends Stocks Climbing

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Published on June 21, 2022 - Duration: 01:30s

Kellogg's Decision to Split Into 3 Companies Sends Stocks Climbing

Kellogg's Decision, to Split Into 3 Companies , Sends Stocks Climbing.

NPR reports that Kellogg Co.

Will split into three different companies focused on cereals, snacks and plant-based foods.

NPR reports that Kellogg Co.

Will split into three different companies focused on cereals, snacks and plant-based foods.

On June 21, the company said that the spinoffs for their cereal and plant-based food products have yet to be named.

On June 21, the company said that the spinoffs for their cereal and plant-based food products have yet to be named.

The company expects the split to be completed by the end of 2022.

In 2021, Kellogg saw net sales of $14.2 billion.

$11.4 billion of that net total was generated by the company's snack division.

Kellogg's cereal division accounted for $2.4 billion in sales, while plant-based sales brought in about $340 million.

Kellogg's cereal division accounted for $2.4 billion in sales, while plant-based sales brought in about $340 million.

These businesses all have significant standalone potential, and an enhanced focus will enable them to better direct their resources toward their distinct strategic priorities, Steve Cahillane, Kellogg CEO, via NPR.

These businesses all have significant standalone potential, and an enhanced focus will enable them to better direct their resources toward their distinct strategic priorities, Steve Cahillane, Kellogg CEO, via NPR.

NPR reports that Cahillane will become the chairman and CEO of Kellogg's snack division.

The company is reportedly looking to explore options for its plant-based business, which includes MorningStar Farms. News of the split sent shares in Kellogg up 8% in early trading to reach $73.29.

The announcement comes as the industry faces rising costs due to Russia's invasion of Ukraine and U.S. inflation reaching a four-decade high.

The announcement comes as the industry faces rising costs due to Russia's invasion of Ukraine and U.S. inflation reaching a four-decade high


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Kellogg's

American multinational food company


Morningstar Farms

Division of the Kellogg Company

Ukraine

Country in Eastern Europe
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