NEW YORK, June 21 — Iconic breakfast food brand Kellogg became the latest US corporate giant to announce a breakup, unveiling plans today to split into three companies in a move that lifted its share price.
“This will unlock and create opportunity for all three businesses,” Kellogg Chief Executive Steve Cahillane said on a conference call with analysts. North American Cereal and Plant Co. would remain headquartered in Battle Creek, Michigan, while Global Snacking will have dual headquarters — in Battle Creek and Chicago.Kellogg’s announcement comes on the heels of earlier corporate break-ups including General Electric’s November 2021 announcement of a split into three ventures, which was followed a few weeks later and by Johnson & Johnson saying it will break in two.
But the bulk of the company’s revenues now come from global snacks, where about 50 per cent of sales come from emerging markets and developed international markets.