Kellogg, a major supplier of packaged foods in the United States and globally, has maintained overall centralized control of all its owned labels during its century-plus history. Yet today, the corporation disclosed a significant shift in its operational approach.
CEO of Kellogg, Steve Cahillane, revealed today that the organization will split into three subdivisions, each functioning as an independent entity, with each overseeing a specific segment of Kellogg’s food portfolio. The initial subdivision will manage Kellogg’s well-known grain-based brands like Corn Flakes and Special K. The second subdivision will oversee snack options such as Pringles and Cheez-Its. The final subdivision will be responsible for all of Kellogg’s natural offerings, such as Kashi and Incogmeato.
“Kellogg has been engaged in a productive process of change to enhance effectiveness and elevate long-term shareholder value,” noted Cahillane in a press release. “These enterprises all possess considerable potential on their own, and a more concentrated approach will enable them to allocate their resources more effectively towards their specific strategic aims.”
Kellogg Spins Off Into Three Companies, Boosting Shares https://t.co/K6pQFaPCLT pic.twitter.com/Bio8RXlbLb
— Forbes (@Forbes) June 21, 2022
Following this development, Kellogg’s stock surged by 8%. Kellogg has achieved substantial profits in recent years from pre-packaged snacks like Nutri-Grain bars, Pop Tarts, and Pringles. Industry experts anticipate the snack-centered division to be the most lucrative among the three sub-entities, and allowing it to operate independently might empower it to pursue greater expansion without the concern of resources being spread thin across other product lines.
