Kellogg’s has made the decision to split their massive empire into three different companies. Each branch will handle different types of food to make it easier for them to work in the future.
Global Snacking will handle all of the snacks, obviously. Fan favorites such as Pop-Tarts, Pringles, Cheez-It, Nutri-Grain, and Rice Krispies Treats will all fall under that branch. North American Cereal Co. will handle all of the breakfast cereals like Raisin Bran, Corn Flakes, Mini-Wheats, and more. Plant Co. will be taking over all of their sustainable properties, such as MorningStar Farms who supply plant-based meat substitutes.
“Kellogg has been on a successful journey of transformation to enhance performance and increase long-term shareowner value,” Kellogg CEO Steve Cahillane said in a statement. “These businesses all have significant standalone potential, and an enhanced focus will enable them to better direct their resources toward their distinct strategic priorities.”
Kellogg’s has tried to spin this to imply the move is not only good for the corporation, but for its employees and consumers as well. Some are skeptical about this division. Recently, a few plants had strikes due to unfair working conditions and long hours. This could be a way to ensure if one plant protests, the others won’t follow suite because they are technically a separate entity. But we’ll see how that all works out.
“These actions will provide employees with new opportunities for growth and development, building on the K values and incredible corporate culture that exists at Kellogg Company today,” Kellogg’s says. “All three businesses have significant standalone potential, and an enhanced focus will enable them to better direct their resources toward their distinct strategic priorities. Each is expected to create more value for all stakeholders and build a new era of innovation and growth.”