Kellogg Co. said Wednesday that its planned split into two companies is on track to be finalized in the fourth quarter of this year.
“In developed markets like the U.S. or even Europe, using the brand Kellogg doesn’t really provide that much value,” Sundaram said. “Consumers sometimes don’t like big brands; they like smaller brands, newer brands, so saying Kellogg’s Pringles or some like that doesn’t really resonate that well.” WK Kellogg Co. is looking at around two or three years of flat sales growth because cereal consumption in the United States is in a secular decline, Kellogg shared at its investors meeting on Wednesday. Sundaram said the company “is OK with that.”
Kellogg decided to keep MorningStar Farms amid falling sales. In April, MorningStar Farms discontinued its meat alternative brand, Incogmeato.Sundaram thinks this is the right move. “Right now is a tough time to be competing in the frozen plant-based meat aisle of the grocery store. There’s been a lot of new entrants and you can get new brands coming in or new companies entering the space. There’s been a lot of hype over plant-based meat.