Kellogg to split into three firms as cereal maker focuses on snacks
Cereal maker Kellogg will split into three independent companies and make its snacks division its biggest focus.
The Coco-pops maker said it would spin off its North American cereal and plant-based foods businesses.
Names for the three companies are yet to be decided upon.
Its snack company – which includes brands including Pringles, Cheez-It, and Pop-Tarts – will be headed by Kellogg’s current chief Steve Cahillane.
“These businesses all have significant standalone potential, and an enhanced focus will enable them to better direct their resources toward their distinct strategic priorities,” CEO Cahillane said.
It comes as the Michigan-based firm is taking the UK government to court over new legislation that will prohibit some high sugar products being prominently displayed in stores, claiming they will cost the brand more than £100m in lost sales.
The food titan argued the government’s formula should factor in the nutritional value of milk, which it says is eaten with cereal in the vast majority of cases.
Under new rules, retailers will face restrictions on food and drink high in fat, salt or sugar in England. The new regulations come as part of ministers’ bid to tackle childhood obesity.
Some items – including Kellogg’s Crunchy Nut Corn Flakes and Fruit and Fibre – will be banned from being on display in store areas such as check outs, entrances, aisle ends. There will also be restrictions with displaying products online too.
Kellogg’s is pushing for a change in the formula, as included added milk in the calculations would slash the proportion of sugar and salt relative the overall serving.
More to follow…