Kellogg Splits Off Cereal Business to Focus on Snacks as Sales Decline

Kellogg is spinning off its North American cereal business into a separate company to focus on more profitable snack brands.
Cereal sales have been gradually declining for years, a trend accelerated by the pandemic. Kellogg expects ongoing declines.
Cereal was long touted as a healthy breakfast, but views are changing on processed grains laden with sugar.
Kellogg's cereal mascots like Tony the Tiger and Toucan Sam will go with the new cereal company.
The cereal spinoff marks a shift for Kellogg away from a product that defined the company for over a century.

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Relevant topic timeline:

9/11/2023

Kellogg to Split into Cereal Company WK Kellogg and Snack Company Kellanova

Kellogg Co. has received formal approval from its board of directors to split into two separate companies, with WK Kellogg Co. focusing on cereals in North America and Kellanova focusing on snack foods and international growth opportunities.

9/19/2023

Breakfast Habits Changing as Fewer Americans Eat Traditional Morning Meals

American families are shifting away from traditional breakfasts, with only 35% of Americans eating a traditional breakfast seven days a week, and Kellogg's separating its cereals business from its snacks business in response to changing consumer tastes and declining cereal sales.

10/1/2023

Snack Food Giants Bet on Junk Despite Rise of Obesity Drugs

Kellogg's is spinning off its cereal business in favor of its snack unit and rebranding as Kellanova, but food companies' focus on snacking is at risk due to the success of obesity and diabetes drugs like Wegovy and Ozempic, which could lead to slower sales for popular snack brands.

10/2/2023

Kellogg Splits Into Two Companies as Cereal Sales Stagnate and Snacking Surges

Kellogg's cereal business, now known as "Kellanova," began trading on the NYSE after being spun off from its parent company, with snacking brands like Pringles and Cheez-It among its portfolio, while shares of Kellanova fell 3% in morning trading and WK Kellogg's stock fell 5%.

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Posted 9/17/2023, 2:23:50 PM