(Boursier.com) — Kellogg jumped 8% in pre-session trading on Wall Street on Tuesday, after the food company announced a plan to split into three businesses: Global Snacking Co., which will account for about $11.4 billion in sales and include international cereals and noodles, as well as the North American frozen breakfast and snacks businesses; North America Cereal Co. which represents approximately $2.4 billion in sales and will include American, Canadian and Caribbean cereals; and Plant Co. The group born in 1894 from the creation of Corn Flakes by WK Kellogg, thus intends to create value.
The Global Snacking division is the major activity with 80% of sales. The final names of the three new companies will be determined later. The group mainly intends to focus on the snacks business, which will be headed by Steve Cahillane, current boss of Kellogg, and will include the Pringles, Cheez-It and Pop-Tarts brands.
The company’s North American cereal business accounted for approximately $2.4 billion in sales in 2021 and includes popular American breakfast cereal brands such as Kellogg’s, Frosted Flakes and Froot Loops.
“These companies all have significant stand-alone potential, and increased focus will allow them to better direct their resources to their distinct strategic priorities,” Cahillane said.
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