Mondelez made its own big play in the snack business on Monday, when it announced it will acquire Clif Bar & Co., a major energy bar company. The last major split in the sector was in in 2012, when Kraft split to create Mondelez. Kellogg’s three international headquarters in Europe, Latin America, and AMEA will remain in their current locations.īig-name companies have begun to split up at an accelerated pace, including General Electric, IBM and Johnson & Johnson, but such splits are more rare for food producers. The snack company will be headquartered in Chicago with a campus in Battle Creek. The cereal and plant-based meat companies will remain headquartered in Battle Creek, Michigan, where Kellogg was founded in 1906. plant-based meat sales were flat in the same period in 2021, they were up nearly 20%, according to NielsenIQ. plant-based meat sales have been plateauing in recent months after several years of strong growth. Cahillane said the plant-based category is seeing fierce competition from new _ and, in many cases, unprofitable _ entrants, and Kellogg needs to be more nimble and aggressive to counter that. Kellogg said it would explore other options for its plant-based business, including a possible sale. In March, a few hundred other workers at a plant that makes Cheez-Its won a new contract with 15% wage increases over three years. The strike ended after the company promised higher wages, enhanced benefits and a quicker path to permanent employment for its temporary workers. Kellogg’s cereal business was also rocked last year by a fire at a plant in Memphis, Tennessee, and by a 10-week strike by more than 1,000 workers at plants in four states. cereal sales were flat, according to NielsenIQ. They saw a brief spike during pandemic lockdowns, when more people sat down for breakfast at home. cereal sales have been waning for years as consumers moved to more portable products, like energy bars. Pringles sales jumped 13% between 20, for example, while Cheez-It sales were up 9%.īut the prospects for cereal and plant-based meat are less clear. Kellogg has been sharpening its focus on its fast-growing snacks for years they now make up around 80% of the company’s sales. But the company felt the time for the spinoff was right as the company has returned to growth. The pandemic put further changes on hold, Cahillane said. In 2019, Kellogg sold its cookie, pie crust, ice cream cone and fruit business to the Ferraro Group. “Cereal will be solely dedicated to winning in cereal and will not have to compete for resources against the high-growth snacking business,” said Cahillane, a former Coca-Cola and AB InBev executive who joined Kellogg in 2017.Ĭahillane said Kellogg has been carefully evaluating its portfolio since 2018, when it announced a plan to shift its resources toward its highest-growth categories, like snacks. All three businesses have significant stand-alone potential, he said. In a conference call with investors, CEO Steve Cahillane said separating the businesses will make them more nimble and better able to focus on their own products. Cereal accounted for another $2.4 billion in sales last year while plant-based sales totaled around $340 million. Kellogg’s had net sales of $14.2 billion in 2021, with $11.4 billion generated by its snack division, which makes Cheez-Its, Pringles and Pop-Tarts, among other brands. Kellogg’s, which also owns plant-based food brand MorningStar Farms, said Tuesday that the spinoff of the yet-to-be-named cereal and plant-based foods companies should be completed by the end of next year. Kellogg Co., the 116-year-old maker of Frosted Flakes, Rice Krispies, Pringles and Eggo, will split into three companies focused on cereals, snacks and plant-based foods.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |