Kellogg to separate into three companies focusing on snacks, cereal and plant-based foods

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Kellogg plans to separate into three independent public companies, sectioning off its iconic brands into distinct snacking, cereal and plant-based businesses.

, have leaned into the trend by introducing more snacks and snapping up smaller brands. On Monday, Mondelez said it is acquiring Clif Bar for $2.9 billion.

"Those who scratched their head in 2012 about the zero-overlap Pringles deal should scratch no longer. It's the legacy North American business that didn't fit management's plans, and today's announcement makes that final," Consumer Edge analyst Jonathan Feeney wrote in a note to clients. Combined, Kellogg's plant-based division and North American cereal business accounted for about 20% of the company's revenue last year. The remaining business includes its snacks, noodles, international cereal and North American frozen breakfast brands.Names for the new companies haven't yet been decided, and proposed management teams for the two spinoffs will be announced by the first quarter of next year. Cahillane will stay on as chief executive of the global snacking company.

 

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