MEMPHIS, Tenn. — Kellogg’s Company announced it is splitting in three: a cereal unit, a snacking unit and a plant-based foods company.
The changes will be fully implemented by the end of 2023. The company’s CEO said there will be very little change.
“So we will be one company for a little while yet,” Steve Cahillane said. “So for the next 18 months we will operate with a business as usual mindset.”
The announcement comes just six months after workers at the plant here in Memphis ended a two-month long strike. The agreement that was reached included a five-year halt on any plant closings and a cost-of-living increase in pay.
Kellogg says that spinning off the companies will not only benefit shareholders but will also better position each business to unlock its full potential.
“We would not have taken this step if we didn’t feel North American Cereal Co. would be better able to unlock it’s potential as a stand-alone company than if we were to maintain the status quo,” Cahillane said.
New names for the spin-offs will be announced later.
For now the cereal unit will be known as North American Cereal Co. which will be focused on the restoration of inventory, profit margins, and share position following a fire last year at the Memphis plant and the worker strike.
WREG reached out to the local Kellogg union for a statement and are waiting to hear back.