Kelloggs to Split Into Three Companies

Kelloggs is splitting into three different companies and social media is abuzz. The corporation just announced that they would become Global Snacking Co., North America Ceral Co., and Plant Co. Each of those distinctions splits into distinct buckets based on the products that Kellog's produces. For the snacking arm, there are favorites like Pringles, Pop-Tarts, Rice Krispies Treats, Cheez-It and Nutri-Grain bars. Over with the cereal staples reside Frosted Flakes, Mini-Wheats, From Loops, Special K, Raisin Bran, Corn Flakes, and more. Meanwhile, Plant Co. will handle things like MorningStar Farms and other plant-based foods under their umbrella. So, there a lot to unpack here to be sure.

"Kellogg has been on a successful journey of transformation to enhance performance and increase long-term shareowner value, said Kellogg CEO Steve Cahillane in a statement. "These businesses all have significant standalone potential, and an enhanced focus will enable them to better direct their resources toward their distinct strategic priorities."

On their website, the company tried to explain how the move to split would benefit their output. A lot of commenters on social media are still confused as to how this ends up benefitting the consumer rather than the corporation itself. There was also a lot of murmurs of the move coming so soon after some work stoppages in 4 plants including Battle Creek, Michigan, home of the brand. Workers wanted better conditions and managed to secure a new five-year deal to prohibit plant closings and increases in pay after an 11-week long strike.  

"These actions will provide employees with new opportunities for growth and development, building on the K values and incredible corporate culture that exists at Kellogg Company today," their explanation begins. "All three businesses have significant standalone potential, and an enhanced focus will enable them to better direct their resources toward their distinct strategic priorities. Each is expected to create more value for all stakeholders and build a new era of innovation and growth."

"In recent years, the Company has transformed its portfolio into one that has expanded geographically and shifted toward growing businesses, particularly in snacking categories.  To achieve this, it has directed resources and investments toward growth categories and markets around the world, made several acquisitions and partnerships in emerging markets, and strengthened its snacks business through acquisitions, divestitures, and the freeing up of resources by exiting from direct-store delivery."

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